Zurich Insurance Group and Aon have teamed up to create a new insurance plan for clean energy projects, specifically blue and green hydrogen initiatives, with a focus on projects costing up to $250 million. Zurich will be the main insurer, and Aon will act as the exclusive broker. This partnership is designed to support the growth of clean hydrogen projects and reflects Zurich's commitment to helping achieve net-zero emissions through customer support, new services, and innovative products.
Insurance is crucial in the transition to net-zero emissions because it offers protection and expertise on managing risks. Clean hydrogen, which is considered a promising alternative to fossil fuels, is expected to play a significant role in this energy shift.
Sierra Signorelli, the CEO of commercial insurance at Zurich, emphasized the importance of this new collaboration with Aon, pointing out that clean hydrogen has great potential to lower carbon emissions.
“In the past two years, Zurich and Aon have done a lot of research and talked to customers to understand the specific needs and challenges of developing blue and green hydrogen projects. Blue hydrogen is made from natural gas and uses carbon capture technologies to reduce its carbon footprint, while green hydrogen is produced by splitting water into hydrogen and oxygen using electrolysis powered by renewable energy,” Signorelli explained.
Joseph Peiser, the global CEO of commercial risk at Aon, highlighted the challenges developers and their financial backers face in reducing risks and obtaining adequate insurance for global hydrogen projects.
“This new insurance plan meets their unique needs by providing comprehensive coverage that addresses the complex risks associated with hydrogen projects throughout their entire life cycle,” Peiser said.
The clean energy insurance plan offers a multi-line, integrated policy that includes various types of coverage such as:
- Construction
- Delay in start-up
- Operational cover
- Business interruption
- Marine cargo limits
- Third-party liability
Additionally, it covers carbon capture, utilization, and storage (CCUS) technologies, providing a complete set of solutions for the hydrogen production value chain.
The plan has received a lot of interest from insurers, surpassing expectations. This indicates a strong market demand for sustainable solutions and shows that the insurance industry is ready to cover new types of risks.
Here is a simplified version of the announcement:
Introduction
Zurich Insurance Group and Aon have launched a new insurance plan for clean energy projects focused on blue and green hydrogen initiatives. This plan is meant for projects with costs up to $250 million. Zurich will be the main insurer, and Aon will be the exclusive broker.
Why This Matters
Insurance is essential in the shift to net-zero emissions because it provides protection and risk management. Clean hydrogen is seen as a promising alternative to fossil fuels and is expected to play a key role in the energy transition.
Key Players' Statements
Sierra Signorelli from Zurich highlighted the importance of this new initiative with Aon, emphasizing the potential of clean hydrogen to reduce carbon emissions. She explained that Zurich and Aon have spent the past two years researching and talking to customers to understand the specific needs of blue and green hydrogen projects. Blue hydrogen is made from natural gas and uses carbon capture technologies, while green hydrogen is produced by splitting water into hydrogen and oxygen using renewable energy.
Joseph Peiser from Aon noted that developers and their financial backers face challenges in reducing risks and obtaining adequate insurance for global hydrogen projects. This new insurance plan addresses their unique needs by providing comprehensive coverage for the entire project life cycle.
What the Plan Covers
The clean energy insurance plan offers a multi-line, integrated policy that includes:
- Construction coverage
- Delay in start-up coverage
- Operational coverage
- Business interruption coverage
- Marine cargo limits
- Third-party liability coverage
It also covers carbon capture, utilization, and storage (CCUS) technologies, providing a complete set of solutions for the hydrogen production value chain.
Market Response
The plan has received strong interest from insurers, indicating a market demand for sustainable solutions and showing that the insurance industry is ready to cover new types of risks.
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