Marsh launches green and blue hydrogen project risks facility

Marsh has today launched a re/insurance facility that provides dedicated capacity for new and existing green and blue hydrogen energy projects.

Developed with Liberty Specialty Markets and AIG, the facility provides up to US$300m of cover per risk for the construction and start up phases of hydrogen projects.

Structured flexibly, to allow clients to choose coverage for the construction or startup phase, or a combined risks policy that extends to first year operations, the facility provides risk transfer options for all construction and operational phase property damage risks; and includes marine cargo, business interruption, general third party liability, and contingent delay-in-start up insurance.

“Marsh’s facility is an important development for the insurance industry that will help enable the acceleration of the global energy transition to renewables,” commented Andrew George, global head, energy and power, Marsh Specialty. “As the global hydrogen industry, especially green hydrogen, scales up rapidly to meet demand the facility will reduce the complexity of securing risk transfer options for operators of all sizes and boosts investor and lender confidence in achieving their ambitious project timeframes.”

Lesley Harding, global head of energy at Liberty Specialty Markets, added: “We are delighted to collaborate with Marsh to bring this solution to market. This is another example of how Liberty is providing industry-leading technical expertise to assess, quantify and underwrite emerging technology risks. Our ambition is to be the strategic insurance partner for clients engaged in the energy transition.”

Investment in green and blue hydrogen initiatives is estimated to exceed US$150bn by 2025 as traditional energy operators, governments, and hard-to-abate industries race to meet carbon reduction commitments.

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