Zurich Insurance Group and Aon have introduced an insurance facility for blue and green hydrogen projects across the globe with capital expenditures of up to $250 million. This initiative aims to support the net-zero transition by providing comprehensive coverage for hydrogen projects, including construction, operational cover, delay in start-up, marine cargo limits, and business interruption risks, among others. The facility, designed to meet the specific needs of hydrogen developers, has already been oversubscribed, demonstrating the strong market interest.
The insurance also includes coverage for carbon capture, utilisation, and storage (CCUS) technologies, providing customers with solutions across the entire value chain of hydrogen production.
The companies have found that blue hydrogen, derived from natural gas with carbon capture technologies, and green hydrogen which produces electricity through renewable energy-powered electrolysis, present significant insurance needs.
“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,” said Joseph Peiser, Global CEO of Commercial Risk at Aon.
