The “Hydrogen: Opportunities, uses and risks in the energy transition” report underscored the crucial role insurers, such as Allianz, will play in de-risking hydrogen projects – especially those involving emerging technologies and large-scale infrastructure.
Driving the $3bn forecast is the over 1,500 hydrogen projects that have been announced as of mid-2024, requiring an estimated $680bn in investment by 2030.
Unlike conventional fuels, Allianz stressed that hydrogen poses unique and well-known risks, such as embrittlement, high flammability, and leak potential, which demand bespoke coverage.
As a result, Allianz noted, “Underwriters must carry out due diligence when providing coverage to prototypes, while manufacturers’ warranties and service will be key considerations.”
High-profile hydrogen-related incidents have occurred since the ‘hydrogen hype.’ In 2019, an assembly error caused an explosion at a Nel refuelling station in Kjørbo, Norway.
Steffen Halscheidt, Global Underwriting Product Leader, Natural Resources, Allianz Commercial, emphasised that hydrogen can be a “challenging medium.”
He said, “Hydrogen production and storage will need to be a safe distance from buildings and equipment. Natural catastrophes also pose a risk. Plants need to be close to sources of water, but this could come with heightened risk of flooding.”
Allianz’s Harald Dimpflmaier, Regional Head of Natural Resources Underwriting, reaffirmed the finance firm’s commitment to the energy transition, however.
“Green hydrogen is likely to play an important role in the energy transition… We fully intend to provide insurance for the range of hydrogen risks and are actively positioning our business in this exciting emerging field.”
Allianz is directly involved in Germany’s Get H2 Nukleus project, a 300MW green hydrogen facility currently under construction.
As the hydrogen economy scales, with a growing list of projects announced and cancelled already in 2025, the report stressed that insurers like Allianz will be critical to managing risk, unlocking investment, and ensuring the deployment of clean energy infrastructure.
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