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Zurich and Aon Propel Clean Hydrogen Insurance for Net-Zero Transition

Zurich and Aon Propel Clean Hydrogen Insurance for Net-Zero Transition

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  • Pioneering Insurance Facility: Zurich and Aon launch a global insurance facility for hydrogen projects.
  • Comprehensive Coverage: The facility offers extensive protection for blue and green hydrogen initiatives.
  • Support for Net-Zero Goals: This initiative underscores Zurich’s commitment to the net-zero transition.

Zurich Insurance Group and Aon have launched an innovative clean energy insurance facility, offering global coverage for blue and green hydrogen projects with capital expenditures up to USD 250 million. This collaboration aims to expedite the development of clean hydrogen initiatives, bolstering Zurich’s pledge to support the net-zero transition through customer engagement, new services, and product innovation.

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 ground-breaking initiative to the market together with Aon.” – Sierra Signorelli, CEO Commercial Insurance at Zurich

Zurich and Aon have spent the last two years researching and engaging with customers to understand the unique challenges of developing blue and green hydrogen projects. Blue hydrogen, derived from natural gas, uses carbon capture technologies to reduce its carbon intensity, while green hydrogen is produced via electrolysis powered by renewable energy.

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

The new facility offers a multi-line insurance policy covering construction, delay in start-up, operational phases, business interruption, marine cargo limits, and third-party liability. It also includes coverage for carbon capture, utilization, and storage (CCUS) technologies, providing a full suite of solutions for hydrogen production.

This facility has already been oversubscribed by participating insurers, exceeding expectations and reflecting the market’s strong appetite for sustainable solutions and the insurance industry’s readiness to support new risks.

Related Article: ExxonMobil and Air Liquide Partner for World’s Largest Low-Carbon Hydrogen Project, Producing 1 Billion ft³ Daily

Hydrogen, which emits only water when combusted, has diverse applications, from fueling buses, trains, and trucks to aviation and shipping via hydrogen-based fuels. It can store and transport renewable energy and has the potential to replace natural gas for heating. Hydrogen is also integral to various industrial processes, including refining petrol, manufacturing steel, treating metals, and producing chemicals.

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