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Clean hydrogen

Clean hydrogen will play an important role in helping industries and countries reduce their carbon emissions. Organisations involved in hydrogen projects can better protect their investments with Marsh’s unique risk management and insurance solutions.

The benefits of clean hydrogen as a storable, and transportable energy source in an increasingly electrified world are widely recognized. As the race to decarbonise dramatically accelerates, governments and hard-to-abate industries are increasingly investing in clean hydrogen production and carbon capture and storage facilities.

Worldwide investment in hydrogen production facilities has surged in recent years and is estimated to exceed US$150 billion by 2025, which will aid energy transition.

Our global teams working across the energy and power, construction, credit, and cargo industries provide expert engineering analysis, tailored risk management and insurance advice, and global placement services covering the full value chain of hydrogen investments.

Marsh is the first and only broker to offer a unique insurance facility that provides 100% of the core insurance needed for the construction and operational phases of a hydrogen project. We give you access to global insurance markets, bespoke policy wording, and risk allocation strategies to suit all project partners and stakeholders. We help you protect your own project investments and build towards success.

Contact us to discuss effective risk management solutions for your project.

Learn more about our risk management solutions for hydrogen projects.

Learn more about our risk management solutions for hydrogen projects.

FAQs

Clean hydrogen is produced using power from renewable energy sources such as wind or solar (referred to as ‘green hydrogen’), or from reduced carbon sources such as gas (referred to as ‘blue hydrogen’).

Hydrogen production is not a new science, so the risks are well known to insurance markets. The difference now is the rapid scale-up of hydrogen projects to meet energy transition demands. As projects increase in size and number, the primary risks relate to electrolyser technology used for hydrogen production, and in how hydrogen is transported or stored. The anticipated demand for clean hydrogen may see investors face supply chain issues, technology shortages, or lack of experienced construction contractors. All of these factors may lead to delays in start-up.

Marsh provides risk management advice and solutions for all types and sizes of hydrogen projects. We use a structured risk framework to manage your project through its critical path. Our approach includes:

  • Assessing potential property damage, business interruption, and liability exposures.
  • Providing engineering advice on plant design, equipment selection, and risk control measures.
  • Reviewing contractual risk allocation, and supporting in stakeholder negotiations.
  • Designing cost effective insurance solutions and project financing mechanisms.
  • Negotiating and placing of complete insurance programs.

Hydrogen projects can involve complex ownership and contractual arrangements that require comprehensive risk management solutions to protect the interests of all project stakeholders. During construction and operation, the core suite of required insurance may include property damage risks, marine cargo, business interruption, general third party liability, and contingent delay-in-start up insurance.

In addition to our standard services, Marsh is the only broker to offer a unique insurance facility, backed by a panel of top rated global insurers, providing pre-agreed coverage, uniform terms, and risk engineering services. The facility secures 100% insurance capacity for construction and operational risks up to US$300 million, and is available for any hydrogen project, anywhere in the world.

Our people

Mark Heneghan

Mark Heneghan

Global Hydrogen Practice Leader

  • United Kingdom

Prakash Patel

Prakash Patel

Global Hydrogen Risk Engineering Leader

This publication is not intended to be taken as advice regarding any individual situation and should not be relied upon as such. The information contained herein is based on sources we believe reliable, but we make no representation or warranty as to its accuracy. Marsh shall have no obligation to update this publication and shall have no liability to you or any other party arising out of this publication or any matter contained herein. Marsh makes no representation or warranty concerning the application of policy wordings or the financial condition or solvency of insurers or re-insurers. Marsh makes no assurances regarding the availability, cost, or terms of insurance coverage. LCPA: 22/365

Marsh Pty Ltd (ABN 86 004 651 512, AFSL 238983) (“Marsh”) arrange this insurance and is not the insurer. The Discretionary Trust Arrangement is issued by the Trustee, JLT Group Services Pty Ltd (ABN 26 004 485 214, AFSL 417964) (“JGS”). JGS is part of the Marsh group of companies. Any advice in relation to the Discretionary Trust Arrangement is provided by JLT Risk Solutions Pty Ltd (ABN 69 009 098 864, AFSL 226827) which is a related entity of Marsh. The cover provided by the Discretionary Trust Arrangement is subject to the Trustee’s discretion and/or the relevant policy terms, conditions and exclusions. This website contains general information, does not take into account your individual objectives, financial situation or needs and may not suit your personal circumstances. For full details of the terms, conditions and limitations of the covers and before making any decision about whether to acquire a product, refer to the specific policy wordings and/or Product Disclosure Statements available from JLT Risk Solutions on request. Full information can be found in the JLT Risk Solutions Financial Services Guide.”