Marsh, an insurance broker, risk advisor, and part of Marsh McLennan, has unveiled a new insurance solution for transporting and storing carbon dioxide (CO2). This innovative offering, available globally, addresses key insurance gaps that have previously slowed the progress of the carbon capture and storage (CCS) industry.
Developed by Marsh’s Energy & Power team and underwritten by Canopius, the solution delivers comprehensive coverage to help upstream energy operators fulfill their financial security obligations for CO2 transportation and injection into geological structures. Unlike traditional insurance, which only responds to physical damage or operational disruption from an out-of-control well, Marsh’s solution introduces a non-damage trigger for geological CO2 leakage. This includes coverage for corrective measures and business interruption.
Additionally, Marsh’s solution provides indemnification for costs associated with acquiring carbon credits for the leaked CO2, applicable based on project geography. This coverage extends across the entire leak removal chain, including scheduled onshore facilities, CO2 pipelines, ships, and storage complexes.
Hannah Jennings, Global Carbon Capture and Storage Initiative Leader, Energy and Power, Marsh Specialty said, “Carbon capture, utilisation and storage has a fundamental role to play in reducing emissions globally and delivering the net zero energy system. Designed to support the upstream energy market as it adapts to the energy transition, Marsh Specialty’s new solution not only represents a meaningful shift in the parameters of traditional energy insurance but also delivers greater certainty and confidence to investors and users of CCS mechanisms.”
Sam Harrison, Group Chief Underwriting Officer, Canopius added, “It’s our job to find solutions to address the as-yet unknown risks associated with these new, exciting technologies. But that doesn’t mean we’re working in the dark – we have decades of experience in finding solutions for traditional upstream energy resource risks, and we can put that experience to work in these new fields. Working with our partners and their clients, we can take learned lessons and find new, innovative ways of addressing tomorrow’s challenges.”