Developed by Marsh in collaboration with insurers Liberty Specialty Markets, part of Liberty Mutual Insurance Group, and AIG, the facility provides up to $300 million of cover per risk for the construction and start up phases of hydrogen projects globally.
Investment in green and blue hydrogen initiatives is estimated to exceed $150 billion by 2025 as traditional energy operators, governments, and hard-to-abate industries race to meet their carbon reduction obligations. However, operators have found it particularly challenging to secure adequate insurance market provision for these new and emerging technologies.
Marsh’s facility is backed by a panel of A-rated global insurers, led by AIG and Liberty Specialty Markets. It provides capacity up to $300 million per risk and is structured flexibly to enable clients – from small operators to multinational organisations – to choose coverage for the construction or startup phase, or a combined risks policy that extends to first year operations. As well as providing risk transfer options for all construction and operational phase property damage risks, the facility 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” said Andrew George, Global Head, Energy & 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. Marsh continues to make significant investments in supporting the diversification of energy systems and is challenging insurance markets to keep pace with industry and improve risk management approaches and choices. We are committed to working with investors through all phases of their projects, to support their energy transition goals.”
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