Zurich-Aon facility offers comprehensive hydrogen coverage

It also covers carbon capture, utilisation, and storage (CCUS) technologies.

Zurich Insurance Group and Aon have partnered to launch a clean energy insurance facility, enabling coverage globally for blue and green hydrogen projects with capital expenditures of up to $250m.

Zurich serves as the lead insurer, and Aon is the exclusive broker for this initiative, which aims to accelerate clean hydrogen project development.

“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 ground-breaking initiative to the market together with Aon,” Sierra Signorelli, CEO of Commercial Insurance at Zurich said in a joint press release.

Over the past two years, Zurich and Aon have conducted extensive research and customer engagement to understand the challenges of developing blue and green hydrogen projects. 

“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.” Joseph Peiser, Global CEO of Commercial Risk at Aon also said in the press release.

The clean energy insurance facility offers coverage through a single integrated policy, including construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability.

It also covers carbon capture, utilisation, and storage (CCUS) technologies, offering a complete suite of solutions across the hydrogen production value chain.

The facility has been oversubscribed by participating insurers, indicating strong market demand for sustainable solutions and the insurance industry's readiness to cover new risks.