Zurich and Aon Launch Innovative Clean Energy Insurance Facility for Hydrogen Projects
Key Ideas
- Zurich and Aon have collaborated to introduce a unique clean energy insurance facility aimed at supporting blue and green hydrogen projects globally with up to $250m in capital expenditures.
- The partnership is driven by the goal of accelerating the development of clean hydrogen projects, addressing specific requirements and challenges identified over two years of research and customer engagement.
- The multi-line insurance facility offers comprehensive coverage for construction, delays, operations, business interruption, and more, supporting carbon capture, utilisation, and storage technologies across the hydrogen production value chain.
- Zurich will lead the insurance efforts, with Aon acting as the exclusive broker, and the facility has received significant interest from insurers, exceeding expectations and showcasing the potential of clean hydrogen as a crucial tool in the energy transition.
Zurich and Aon have partnered to launch a groundbreaking clean energy insurance facility focused on supporting blue and green hydrogen projects worldwide, with a substantial investment of up to $250 million. The initiative aims to accelerate the development of clean hydrogen projects by addressing specific industry requirements and challenges identified through extensive research and customer interactions conducted over the past two years.
Blue hydrogen, derived from natural gas with carbon capture technologies, and green hydrogen, generated through water electrolysis powered by renewable energy, are the key focuses of this initiative. The newly introduced multi-line insurance facility offers a comprehensive coverage package through a single integrated policy, including construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability.
Moreover, the insurance facility extends its support to carbon capture, utilisation, and storage technologies, providing customers with a holistic set of solutions spanning the entire value chain of hydrogen production. Zurich leads the insurance efforts, while Aon serves as the exclusive broker for this innovative facility.
The initiative has garnered remarkable interest from participating insurers, surpassing initial expectations, indicating a strong market appetite for supporting clean energy initiatives. Sierra Signorelli, CEO Commercial Insurance at Zurich, highlighted the pivotal role of insurance in enabling the net-zero transition and expressed confidence in the potential of clean hydrogen as a sustainable alternative to traditional fuels.
The collaboration between Zurich and Aon underscores their commitment to driving innovation and sustainability in the energy sector. This initiative represents a significant step towards leveraging clean hydrogen to facilitate the global energy transition, while providing essential risk mitigation and protection through tailored insurance solutions.