Zurich and Aon Join Forces to Propel Hydrogen Energy Projects

Zurich and Aon have partnered to launch an innovative clean energy insurance facility, specifically designed to support blue and green hydrogen projects. This comprehensive global coverage is aimed at projects with capital expenditures up to $250 million, providing a much-needed boost to the development of clean hydrogen energy.

Understanding the Needs

Over the past two years, Zurich and Aon have engaged in extensive research and consultations with customers to understand the unique challenges of developing hydrogen projects. Blue hydrogen, derived from natural gas and employing carbon capture technologies, and green hydrogen, produced via electrolysis powered by renewable energy, both represent the future of clean energy.

Comprehensive Coverage

The new facility offers an all-encompassing insurance solution through a single integrated policy. It covers construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability. Additionally, it includes coverage for carbon capture, utilization, and storage technologies, ensuring comprehensive protection across the entire hydrogen production value chain.

Market Impact

The facility has seen overwhelming interest, being oversubscribed by participating insurers, which significantly exceeds expectations. This initiative not only provides necessary insurance but also brings risk expertise to facilitate the transition to net-zero emissions.

Quotes from Leadership

"Insurance is a key enabler to facilitate the net-zero transition, providing protection as well as risk expertise. Clean hydrogen 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 groundbreaking initiative to the market together with Aon," said Sierra Signorelli, CEO Commercial Insurance at Zurich.

Joseph Peiser, Global CEO of Commercial Risk at Aon, added, "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."