Zurich and Aon Launch Innovative Clean Hydrogen Insurance to Drive Net-Zero Goals

Zurich Insurance Group (Zurich) and Aon have introduced an innovative insurance facility for clean energy, offering extensive coverage worldwide for blue and green hydrogen projects costing up to USD 250 million. Zurich leads as the insurer with Aon serving as the exclusive broker. This initiative is designed to expedite the advancement of clean hydrogen projects and aligns with Zurich’s dedication to promoting the net-zero transition through enhanced customer engagement, new services, and innovative product offerings.

Insurance plays a crucial role in supporting the net-zero transition by offering protection and risk expertise. Clean hydrogen represents a significant environmentally friendly alternative to fossil fuels, and we firmly believe it can be pivotal in advancing the energy transition. We are delighted to introduce this innovative initiative in collaboration with Aon. — Sierra Signorelli, CEO Commercial Insurance at Zurich

Over the last two years, Zurich and Aon have conducted thorough research and consulted with customers to understand the unique requirements and obstacles associated with developing blue and green hydrogen projects. Blue hydrogen is sourced from natural gas and incorporates carbon capture technologies to lower its carbon footprint, whereas green hydrogen is produced through electrolysis, splitting water into hydrogen and oxygen using renewable energy sources.

Numerous developers and their financiers have encountered difficulties in mitigating risks and obtaining sufficient insurance coverage for the diverse stages of hydrogen projects worldwide. This innovative solution addresses their specific requirements by offering extensive coverage that manages the intricate risks inherent in hydrogen projects throughout their entire lifecycle, as stated by Joseph Peiser, Global CEO of Commercial Risk at Aon.

The newly introduced multi-line clean energy insurance facility provides extensive coverage under a unified policy, covering construction, delay in start-up, operational risks, business interruption, marine cargo limits, and third-party liabilities. It also incorporates coverage for carbon capture, utilization, and storage (CCUS) technologies, offering customers a comprehensive range of solutions across the entire hydrogen production value chain.

Participating insurers have already subscribed beyond initial projections, showcasing robust market interest in sustainable solutions and the insurance sector's readiness to address emerging risks.

Hydrogen emits only water when burned and has a wide range of applications. It can power buses, trains, and trucks for transportation, and be utilized in aviation and shipping through hydrogen-based fuels. When paired with renewable energy generation, hydrogen serves as a means to store and transport renewable energy. Additionally, hydrogen holds promise as a substitute for natural gas in heating buildings, and it is already integral to numerous industrial processes such as refining petroleum, manufacturing steel, treating metals, and producing chemicals.