London-based insurance broker Marsh has launched the world’s first insurance product designed specifically for green and blue hydrogen projects.

The launch of the new product, which is aimed at both small developers and large multinationals, comes as hydrogen projects find it “particularly challenging” to secure adequate insurance cover, Marsh says.

The ability to insure projects should help to reduce risk and boost investor confidence as the industry scales up.

$300mn – Cover per project risk category

“Marsh’s facility is an important development for the insurance industry that will help enable the acceleration of the global energy transition to renewables,” says Andrew George, Marsh’s global head of energy and power.

“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.”

The new product, developed by Marsh together with insurers Liberty Specialty Markets and AIG, provides developers with up to $300mn of cover per risk category for the construction and startup phases of hydrogen projects globally.

Risk categories covered include damage during construction and the first year of operation, marine cargo, business interruptions and startup delays.

Developers can choose cover for the construction or startup phase of a project, or a combined policy running from construction through the first year of operation.

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Author: Stuart Penson