This initiative with Zurich as the lead insurer and
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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
Over the past two years, Zurich and
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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.
The new multi-line clean energy insurance facility offers comprehensive coverage through a single integrated policy, encompassing construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability. It also includes coverage for carbon capture, utilization, and storage (CCUS) technologies, providing customers with a complete suite of solutions across the entire value chain of hydrogen production.
The facility has already been oversubscribed by the participating insurers, significantly exceeding expectations. This demonstrates the market's appetite for sustainable solutions and the insurance industry's willingness to provide coverage for new risks.
Hydrogen only emits water when combusted and has diverse applications. It can fuel buses, trains and trucks for transportation, and be used in aviation and shipping through hydrogen-based fuels. Combined with renewable power generation, it can store and transport renewable energy. Hydrogen has the potential to replace natural gas for heating buildings and it is already used in various industrial processes such as refining petrol, manufacturing steel, treating metals, and producing chemicals.
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