Zurich and Aon Launch Innovative Insurance Coverage for Hydrogen Energy Projects
Key Ideas
- Zurich and Aon have collaborated to provide comprehensive insurance coverage for hydrogen energy projects up to $US250 million, recognizing hydrogen as a key player in the energy transition.
- The initiative covers both blue and green hydrogen production, offering solutions across the entire value chain and addressing the complex risks associated with hydrogen projects worldwide.
- The insurance facility includes coverage for construction, operational risks, business interruption, and technologies like carbon capture and storage, aiming to support developers and capital providers in the evolving hydrogen industry.
Zurich and Aon have teamed up to introduce an innovative insurance coverage specifically tailored for hydrogen energy projects, emphasizing the potential of clean hydrogen as a sustainable alternative to traditional fossil fuels. The initiative, led by Zurich as the primary insurer and Aon as the exclusive broker, has garnered significant interest from participating insurers, highlighting the industry's confidence in hydrogen's role in the global energy transition. This groundbreaking collaboration, developed over two years of research into hydrogen projects, aims to offer a comprehensive suite of insurance solutions that address the diverse risks associated with hydrogen production. From covering blue hydrogen derived from natural gas with carbon capture to green hydrogen produced through water electrolysis, the facility spans the entire hydrogen value chain. The insurance policy encompasses various aspects such as construction, operational risks, business interruption, and even incorporates coverage for carbon capture and storage technologies, reflecting a holistic approach to risk management in the hydrogen sector. The CEOs of Zurich and Aon have emphasized the importance of supporting developers and capital providers in overcoming the challenges of securing adequate insurance for hydrogen projects, aligning with the industry's growing demand for specialized coverage in this evolving field. Moreover, the article notes hydrogen's versatility beyond energy production, highlighting its potential applications in transportation, heating, refining, and manufacturing, underlining its significance in various industries. Overall, the collaboration between Zurich and Aon not only signals a positive outlook on hydrogen but also demonstrates a proactive approach to risk mitigation and innovation in the clean energy sector.