Zurich and Aon team up for new insurance facility

Insurer Zurich and broker Aon have teamed up to launch a clean energy insurance facility.

The new facility will provide coverage globally for blue and green hydrogen projects with capital expenditures of up to $250m (£197m).

Blue hydrogen comes from natural gas and uses carbon capture technologies to reduce its carbon intensity.

Green hydrogen, meanwhile, is produced by splitting water into hydrogen and oxygen via electrolysis powered by renewable energy.

The initiative aims to accelerate the development of clean hydrogen projects.

Sierra Signorelli, chief executive of 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. We are proud to bring this ground-breaking initiative to the market together with Aon.”

Coverage

Coverage is provided through a single integrated policy, encompassing construction, delay in startup, operational cover, business interruption, marine cargo limits and third-party liability.

It also includes coverage for carbon capture, utilisation and storage (CCUS) technologies.

Joseph Peiser, global chief executive 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.

”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.”