Marsh Launches Insurance Facility For Green & Blue Hydrogen Project Risks

Global insurance broker and risk advisor Marsh has announced the launch of a first-of-its-kind insurance and reinsurance facility that provides dedicated insurance capacity for new and existing green and blue hydrogen energy projects.

Marsh said that the facility is developed by the company in collaboration with insurers Liberty Specialty Markets and AIG. The facility provides up to $300 million of cover per risk for the construction and start-up phases of hydrogen projects globally.

As per the official statement of Marsh, investment in green and blue hydrogen initiatives is estimated to exceed $150 billion by 2025 as traditional energy operators, governments, and hard-to-abate industries race to meet their carbon reduction obligations. But operators have found it particularly challenging to secure adequate insurance market provision for these new and emerging technologies.

The facility of Marsh is backed by a panel of A-rated global insurers, led by Liberty Specialty Markets and AIG. It is structured flexibly to enable clients – from small operators to multinational organizations – to choose coverage for the construction or startup phase, or a combined risks policy that extends to first year operations. 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.

Andrew George, Global Head, Energy & Power, Marsh Specialty, stated, “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.”

Lesley Harding, Global Head of Energy at Liberty Specialty Markets, said: “We are delighted to collaborate with Marsh to bring this solution to market.” He added, “Our ambition is to be the strategic insurance partner for clients engaged in the energy transition.”

James Langdon, AIG UK Head of Energy and Construction, said, “At AIG we are keen to elevate the industry standard, so we proactively collaborate with our partners to devise new and impactful insurance solutions in support of our clients’ changing needs.”