Parhelion Underwriting Limited, the UK-based energy and climate risk insurance and advisory group, has been awarded a $1 million grant to progress its investment fund for de-risking geothermal projects in east Africa.
The P4G (the Partnering for Green Growth and Global Goals 2030 Initiative) scale-up grant and partnership from the national Danish P4G platform aims to accelerate and fund innovative public-private partnerships that drive green growth.
It will enable Parhelion to further develop its GeoFutures Fund by deploying sustainable capital from private sector insurance.
As part of the solution, the partnership will establish an investment fund to provide sustainable development loans and a premium finance facility to early stage geothermal project developers.
Additionally, a specialist underwriting vehicle will be established and capitalised to offer innovative insurance underwriting solutions for the sustainable investment sector.
Parhelion believes countries such as Ethiopia and Kenya have an enormous and yet untapped geothermal power energy.
At the same time, there is a growing demand for affordable, clean energy access, but high risk and high capital costs associated with developing geothermal resources act as a significant investment barrier.
The P4G grant and partnership will also enable Parhelion’s GreenInvest blended finance platform, which will mobilise insurance underwriting capital to de-risk sustainable investment opportunities.
“We are delighted to have been awarded this partnership opportunity and grant because it enables us to mobilise private sector insurance underwriting capital at scale and promote system change,” said Julian Richardson, CEO of Parhelion.
“This can only be done through collaboration and partnerships,” he added. “P4G will enable these crucial partnerships with key stakeholders and influencers; providing a valuable platform to amplify the message and deliver the change the world needs, including creating 600MW of geothermal power in Kenya and Ethiopia, which is essential.”
David Howden, CEO of Hyperion Insurance Group, a GeoFutures GreenInvest partner, also commented: “As a company we are working hard to build a sustainable business for the next 25 years and beyond. Intrinsic to this vision is being a part of the solution to the environmental and sustainability crisis the world is facing and our partnership with Parhelion is an exciting step on that road for the industry and our clients.
“Julian’s experience, vision and energy are helping us to form new connections in this important space, increasing awareness throughout the insurance industry and further developing innovative products that support sustainable development,” Howden continued.
“We can then leverage our extensive global network across 90 countries for the purpose of product distribution and business generation to place insurance products that are often the first of their kind in the London market.”
David Shreeve, Director of The Conservation Foundation, further stated: “Geothermal energy has the potential to contribute to addressing climate change and conserving threatened natural resources. We are pleased to support Parhelion’s project and provide administrative support, which will develop tools to stimulate green energy sources, and in the evaluation of the potential impacts of geothermal projects.”
