Insurance Leaders Launch New Clean Hydrogen Programme Amid Growing Market Appetite
Key Ideas
  • Zurich and Aon collaborate to offer a clean hydrogen insurance program for blue and green projects up to $250m, catering to construction, operational, and business interruption risks.
  • The oversubscribed program showcases the market's interest in clean solutions and the insurance industry's readiness to cover new risks, supporting the transition to Net Zero.
  • Global CEO of Commercial Risk at Aon highlights the importance of insurance in de-risking projects, while CEO Commercial Insurance at Zurich emphasizes its role in facilitating the Net Zero transition.
  • The article discusses the challenges and advancements in electrolyser technology for green hydrogen production, stressing the need for innovation, efficiency, and quality control standards.
Insurance giants Zurich and Aon have introduced a new clean hydrogen insurance initiative focusing on blue and green projects with a maximum CAPEX of $250m. This program aims to provide comprehensive coverage for various project phases, including construction, delayed start-up, operational risks, business interruption, and carbon capture technologies. The response to the initiative has surpassed expectations, indicating a strong market demand for clean solutions and the insurance sector's willingness to underwrite emerging risks. The insurance offering addresses the concerns in the industry about covering the increasing number of green energy ventures and the challenges faced by developers in de-risking large-scale clean hydrogen projects. Both Zurich and Aon executives underscore the pivotal role of insurance in enabling the Net Zero transition by offering protection and risk expertise. The Hydrogen Council's report reveals that only a small fraction (7%) of global hydrogen projects have reached the final investment decision stage, primarily due to high capital expenditure, engineering, procurement, and renewable energy costs. The article also delves into the insights of industry experts regarding the evolving electrolyser technology for green hydrogen production. It emphasizes the rapid advancements in alkaline and PEM electrolysis systems, with decreasing costs, improved efficiencies, and innovative stack architectures. The focus is on adapting electrolyser designs to meet the demands of large-scale green hydrogen production, emphasizing the importance of quality assurance and control certification to minimize insurance claims. Overall, the article shines a positive light on the collaborative efforts of insurance leaders in supporting clean hydrogen projects, highlighting the industry's evolution to meet the challenges of transitioning towards sustainable energy solutions.
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