Hydrogen and CCUS projects will be covered up to $250m
Hydrogen and CCUS projects will be covered up to $250m

Zurich and Aon insure hydrogen and CCUS projects

Zurich Insurance Group (Zurich) and broker Aon have launched a clean energy insurance facility which covers blue and green hydrogen projects globally, as well as CCUS, with capital expenditures of up to $250m.

Providing insurance cover is another key financial piece in the development and acceleration of hydrogen. According to a statement, the facility has already been ‘oversubscribed’.

Sierra Signorelli, CEO Commercial Insurance at Zurich, said 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,” she said.

Over the past two years, both companies have conducted extensive research and engaged with customers to gain insights about the specific needs and challenges of developing blue and green hydrogen projects.

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.

He said, “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.”

The new multi-line clean energy insurance facility 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 CCUS technologies, providing customers with a complete suite of solutions across the entire value chain of hydrogen production.

Allianz Capital Partners, on behalf of Allianz insurance companies, signed an agreement to acquire a minority stake in Norwegian project developer Fuella last July.

The independent developer of commercial-scale green hydrogen and green ammonia projects was established in 2020. Allianz is providing funding of €20m to support Fuella’s project pipeline.

Read more on hydrogen and CCUS in the August issue of gasworld global

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