Insurer Zurich and broker Aon have partnered to introduce a novel hydrogen insurance facility to facilitate the advancement of carbon-free fuel initiatives. This new service is designed to underwrite projects with a significant capital expenditure of up to US$250 million, covering both blue and green forms of hydrogen. Hydrogen, known for its energy-rich properties and zero carbon emissions, is increasingly considered as a viable alternative to traditional fossil fuels. The 'green' hydrogen is produced by utilizing renewable energy to split water molecules, while 'blue' hydrogen is derived from natural gas with the carbon dioxide byproduct captured and stored underground. Despite their environmental benefits, both methods pose unique risks due to their novelty. Zurich and Aon's collaborative effort involved extensive consultations with developers to tailor insurance solutions that cater to the specific requirements and challenges of hydrogen projects. The insurance coverage provided includes aspects such as construction, operational risk, business interruption, marine cargo limits, third-party liability, and even carbon capture and storage technology. Joseph Peiser, Aon's Global CEO of Commercial Risk, emphasized the importance of this initiative to address the complexities associated with hydrogen projects and provide comprehensive risk mitigation across the project life cycle. The overwhelming response from insurers indicates a significant demand for such specialized insurance solutions, signaling a positive outlook for the future of hydrogen as a sustainable energy source.