Monday 22 August 2022

‘World’s first’ insurance facility for hydrogen risks opens

Insurance broker Marsh claims it has launched the world’s first facility providing insurance capacity for new and existing hydrogen energy projects.

This facility provides up to $300 million (£254m) of cover per risk for the building and opening of hydrogen projects.

The company estimates investment in hydrogen sites to reach more than $150 billion (£127bn) by 2025 – and states that insurance provision of the market will be necessary to drive more investment.

Any risks associated with transfer of materials or property are also included in the risk cover, including third-party liability.

Andrew George, Global Head at Marsh, 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.”