Insurance broker Marsh, a part of Marsh McLennan, has launched dedicated insurance for new and existing green and blue hydrogen energy projects.
The new offering, claimed to be first-of-its-kind, has been developed by Marsh in partnership with a unit of Liberty Mutual Insurance Group and AIG.
It will provide coverage of up to $300m per risk for the construction and startup phases of hydrogen projects across the world.
As the world rushes to achieve net zero targets, estimates suggest that the investment in green and blue hydrogen projects could surpass the $150bn mark by 2025.
Despite this, securing adequate cover for these new and emerging technologies is said to be challenging.
Apart from providing a risk transfer facility for all construction and operational phase property damage risks, the insurance cover provides coverage for marine cargo, business interruption, general third-party liability, and contingent delay-in-start up.
Marsh Specialty global head, energy and power Andrew George said: “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.”
AIG UK head of energy and construction James Langdon said: “This innovative solution is one of many initiatives that we are working on with our clients and broker partners in support of the energy transition and our net zero commitments.”