Zurich Insurance Group (Zurich) and Aon have launched a pioneering clean energy insurance facility, providing comprehensive coverage globally for blue and green H₂ projects with capital expenditures of up to $250 MM. This initiative with Zurich as the lead insurer and Aon as the exclusive broker aims to accelerate the development of clean H₂ projects. It also forms part of Zurich’s commitment to support the net-zero transition through customer engagement, new services and product innovation.

“Insurance is a key enabler to facilitate the net-zero transition, providing protection as well as risk expertise. Clean H₂ 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,” said Sierra Signorelli, CEO Commercial Insurance at Zurich.

Over the past two years, Zurich and Aon have conducted extensive research and engaged with customers to gain insights about the specific needs and challenges of developing blue and green H₂ projects. Blue H₂ is derived from natural gas and uses carbon capture technologies to reduce its carbon intensity; while green H₂ is produced by splitting water into H₂ and oxygen via electrolysis powered by renewable energy.

“Many developers and their capital providers have found it challenging to de-risk and secure adequate insurance coverage for the various phases of global H₂ projects. This new solution caters to their unique needs, providing comprehensive coverage addressing the complex risks associated with H₂ projects across the entire project lifecycle,” said Joseph Peiser, Global CEO of Commercial Risk at Aon.

The new multi-line clean energy insurance facility offers comprehensive coverage through a single integrated policy, encompassing construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability. It also includes coverage for carbon capture, utilization, and storage (CCUS) technologies, providing customers with a complete suite of solutions across the entire value chain of H₂ production.

The facility has already been oversubscribed by the participating insurers, significantly exceeding expectations. This demonstrates the market’s appetite for sustainable solutions and the insurance industry’s willingness to provide coverage for new risks.