Zurich and Aon Launch Comprehensive Insurance Facility to Accelerate Global Hydrogen Projects

Zurich and Aon Launch Comprehensive Insurance Facility to Accelerate Global Hydrogen Projects

(IN BRIEF) Zurich Insurance Group and Aon have launched a comprehensive insurance facility to support blue and green hydrogen projects globally, with coverage for projects up to USD 250 million. This initiative, led by Zurich and brokered exclusively by Aon, aims to accelerate clean hydrogen development and support the net-zero transition. The facility, already oversubscribed by insurers, offers integrated coverage for construction, operational phases, business interruption, and carbon capture technologies. Hydrogen’s potential applications in transportation, energy storage, and various industries highlight its importance in the energy transition.

(PRESS RELEASE)  ZÜRICH, 1-Jul-2024 — /EuropaWire/ — Zurich Insurance Group “Zurich” (SWX: ZURN), Swiss’s largest insurer, and Aon have recently introduced a groundbreaking clean energy insurance facility that provides extensive global coverage for blue and green hydrogen projects with capital expenditures of up to USD 250 million. This innovative initiative, with Zurich as the primary insurer and Aon as the sole broker, aims to expedite the development of clean hydrogen projects and aligns with Zurich’s commitment to supporting the net-zero transition through customer engagement, new services, and product innovation.

Sierra Signorelli, CEO of Commercial Insurance at Zurich, emphasized the crucial role of insurance in facilitating the net-zero transition, offering protection and risk expertise. She highlighted the significant potential of clean hydrogen as an eco-friendly alternative to fossil fuels, asserting that it can play a pivotal role in the energy transition. Signorelli expressed pride in bringing this pioneering initiative to the market in collaboration with Aon.

Over the past two years, Zurich and Aon have conducted thorough research and engaged with customers to understand the specific needs and challenges associated with developing blue and green hydrogen projects. Blue hydrogen is produced from natural gas using carbon capture technologies to lower its carbon intensity, while green hydrogen is created by splitting water into hydrogen and oxygen via electrolysis powered by renewable energy.

Joseph Peiser, Global CEO of Commercial Risk at Aon, noted that many developers and their capital providers have faced difficulties in de-risking and securing adequate insurance coverage for the various phases of global hydrogen projects. He explained that this new solution is tailored to their unique needs, offering comprehensive coverage that addresses the complex risks associated with hydrogen projects throughout their entire life cycle.

The newly launched multi-line clean energy insurance facility provides extensive coverage through a single integrated policy, including construction, delay in start-up, operational cover, business interruption, marine cargo limits, and third-party liability. Additionally, it covers carbon capture, utilization, and storage (CCUS) technologies, offering customers a complete suite of solutions across the entire hydrogen production value chain.

The facility has already been oversubscribed by participating insurers, significantly surpassing expectations. This demonstrates the market’s strong demand for sustainable solutions and the insurance industry’s readiness to provide coverage for new risks.

Hydrogen, which only emits water when combusted, has diverse applications. It can power 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 also has the potential to replace natural gas for heating buildings and is already used in various industrial processes such as refining petrol, manufacturing steel, treating metals, and producing chemicals.

Zurich Insurance Group (Zurich) is a leading multi-line insurer serving people and businesses in more than 200 countries and territories. Founded 150 years ago, Zurich is transforming insurance. In addition to providing insurance protection, Zurich is increasingly offering prevention services such as those that promote wellbeing and enhance climate resilience.

Reflecting its purpose to ‘create a brighter future together,’ Zurich aspires to be one of the most responsible and impactful businesses in the world. It is targeting net-zero emissions by 2050 and has the highest-possible ESG rating from MSCI. In 2020, Zurich launched the Zurich Forest project to support reforestation and biodiversity restoration in Brazil.

The Group has about 60,000 employees and is headquartered in Zurich, Switzerland. Zurich Insurance Group Ltd (ZURN), is listed on the SIX Swiss Exchange and has a level I American Depositary Receipt (ZURVY) program, which is traded over-the-counter on OTCQX. Further information is available at www.zurich.com.

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Investor Relations
Zurich Insurance Group
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8002 Zurich
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investor.relations@zurich.com

SOURCE: Zurich Insurance Group