Zurich Insurance Group and Aon have launched a clean energy insurance facility, providing comprehensive coverage globally for blue and green hydrogen projects with capital expenditures of up to USD 250 million.
With Zurich as the lead insurer and Aon as the exclusive broker, this initiative aims to accelerate the development of clean hydrogen projects and support the net-zero transition through customer engagement, new services and product innovation.
“Blue hydrogen is derived from natural gas and uses carbon capture technologies to reduce its carbon intensity; while green hydrogen is produced by splitting water into hydrogen and oxygen via electrolysis powered by renewable energy”, Zurich explained.
The new multi-line clean energy insurance facility reportedly 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.
It also includes coverage for carbon capture, utilization, and storage (CCUS) technologies, “providing customers with a complete suite of solutions across the entire value chain of hydrogen production.”
As per Zurich, the facility has already been oversubscribed by the participating insurers, significantly exceeding expectations.
Sierra Signorelli, CEO of Commercial Insurance at Zurich, commented, “Insurance is a key enabler to facilitate the net-zero transition, providing protection as well as risk expertise.
“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. We are proud to bring this ground-breaking initiative to the market together with Aon.”
Joseph Peiser, Global CEO of Commercial Risk at Aon, said, “Many developers and their capital providers have found it challenging 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.”
