Developed in collaboration with insurers Liberty Specialty Markets, part of Liberty Mutual Insurance Group, and AIG, the facility provides up to US$300m of cover per risk for the construction and start up phases of hydrogen projects globally.

Investment in green and blue hydrogen initiatives is estimated to exceed US$150bn by 2025 as traditional energy operators, governments, and hard-to-abate industries race to meet their carbon reduction obligations. However, operators have found it particularly challenging to secure adequate insurance market provision for these new and emerging technologies.

Marsh’s facility is backed by a panel of A-rated global insurers, led by Liberty Specialty Markets and AIG.

It is structured flexibly to enable clients – from small operators to multinational organisations – to choose coverage for the construction or startup phase, or a combined risks policy that extends to first year operations.

As well as providing risk transfer options for all construction and operational phase property damage risks, the facility includes marine cargo, business interruption, general third party liability, and contingent delay-in-start up insurance.

Andrew George, Global Head, Energy & Power, Marsh Specialty, said, “Marsh’s facility is an important development for the insurance industry that will help enable the acceleration of the global energy transition to renewables. 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.”

He added that Marsh continues to make significant investments in supporting the diversification of energy systems and is challenging insurance markets to keep pace with industry and improve risk management approaches and choices.

Lesley Harding, Global Head of Energy at Liberty Specialty Markets, said, “Our ambition is to be the strategic insurance partner for clients engaged in the energy transition.”

James Langdon, AIG UK Head of Energy and Construction, said the innovative solution is one of many initiatives it is working on with clients and broker partners in support of the energy transition and net zero commitments.

Mark Heneghan is listed as Marsh’s Global Hydrogen Practice Leader, with Prakash Patel as Global Hydrogen Risk Engineering Leader.

Pillsbury has introduced a Hydrogen Map which regularly updates global low-carbon hydrogen projects and their status.