• | 3:37 pm

Zurich, Aon roll out maiden clean hydrogen insurance plan

The new multi-line clean energy insurance policy offers comprehensive coverage encompassing construction, delay in starting up, operations, business interruption, and marine cargo limits

Zurich, Aon roll out maiden clean hydrogen insurance plan
[Source photo: Chetan Jha]

Swiss Zurich Insurance Group and British-American services and management consulting firm Aon have rolled out a new clean energy insurance plan to cover blue and green hydrogen projects with up to $250 million in capital expenditure.

The new multi-line clean energy insurance plan offers comprehensive coverage through a single integrated policy, encompassing construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability.

The insurance plan, which also covers carbon capture, utilization, and storage (CCUS) technologies, has already been oversubscribed by the participating insurers, significantly exceeding expectations, the companies said in a joint statement.

The policy is offered by Zurich as lead insurer and Aon as broker.

Leading up to the launch, Zurich and Aon said they conducted in-depth research over the past two years and engaged with customers to gain insights about the needs and challenges of developing blue and green hydrogen projects.

During the study, Joseph Peiser, global chief executive officer of commercial risk at Aon, said many developers and their capital providers disclosed the challenges to de-risk and secure adequate insurance coverage for the various phases of global hydrogen projects.

“This new solution caters to their unique needs, providing comprehensive coverage addressing the complex risks associated with hydrogen projects across the entire project life cycle,” Peiser said.

“Insurance is a key enabler to facilitate the net-zero transition, providing protection as well as risk expertise,” said Sierra Signorelli, chief executive of commercial insurance at Zurich, adding: “Clean hydrogen has immense potential as an eco-friendly alternative to fossil fuels, and we strongly believe it can play a critical role in the energy transition.”

Hydrogen, in its blue form, is derived from natural gas using carbon capture technologies. In its green form, produced by splitting water via electrolysis powered by renewable energy, it offers a low-carbon alternative with diverse applications.

When combusted, hydrogen emits only water. It can fuel transportation modes such as buses, trains, and trucks and is also suitable for aviation and shipping through hydrogen-based fuels. Hydrogen can also store and transport renewable energy when combined with renewable power generation. It can replace natural gas for heating buildings and is used in processes like refining petrol, manufacturing steel, treating metals, and producing chemicals.

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