Marsh has launched a “first of its kind” insurance and reinsurance facility for new and existing green hydrogen projects.
Developed by the insurance broker in collaboration with insurers Liberty Specialty Markets, part of Liberty Mutual Insurance Group, and AIG, the facility provides up to US$300m (€299.6m) of cover per risk for the construction and start up phases of hydrogen projects globally.
Global head for energy & power at Marsh Specialty Andrew George said: “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.”
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 their carbon reduction obligations, according to the broker.
However, operators have found it particularly challenging to secure adequate insurance market provision for these new and emerging technologies, Marsh said.
Marsh’s facility 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, it added.
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.