Marsh launches insurance solution for global CCS projects
Marsh launches insurance solution for global CCS projects | Insurance Business America
Risk Management News
Marsh launches insurance solution for global CCS projects
The solution aims to address crucial insurance limitations in the CCS industry
Risk Management News
By
Noel Sales Barcelona
Marsh has announced the launch of its “unique” insurance solution for the transportation and storage of carbon dioxide (CO2), which aims to address critical insurance limitations that have previously hindered the advancement of the carbon capture and storage (CCS) industry.
According to the company, the solution, created by Marsh‘s energy and power team and underwritten by Canopius, has been designed to provide comprehensive coverage that enables upstream energy operators to meet their financial security obligations when captured CO2 is being transported and injected into suitable geological structures. Marsh stated that traditional insurance provision for these risks requires physical damage or disruption to operations caused by an out-of-control well for policies to respond.
The company also stated that the solution includes indemnification for the costs incurred to acquire carbon credits for the mass of CO2 leaked, where applicable to the project’s geography. The indemnification, Marsh explained, is available across the leak removal chain, whether the leak occurs from scheduled onshore facilities, the CO2 pipeline or ship, or from the storage complex itself.
“Carbon capture, utilisation, and storage have a fundamental role to play in reducing emissions globally and delivering the net zero energy system. Designed to support the upstream energy market as it adapts to the energy transition, Marsh Specialty’s new solution not only represents a meaningful shift in the parameters of traditional energy insurance but also delivers greater certainty and confidence to investors and users of CCS mechanisms,” said Hannah Jennings (pictured, left), global carbon capture and storage initiative leader, energy and power, Marsh Specialty.
Meanwhile, Canopius‘ group chief underwriting officer Sam Harrison (pictured, right) said that both companies recognise the importance of addressing critical risks associated with new environmental technologies.
“It’s our job to find solutions to address the as-yet-unknown risks associated with these new, exciting technologies. But that doesn’t mean we’re working in the dark – we have decades of experience in finding solutions for traditional upstream energy resource risks, and we can put that experience to work in these new fields. Working with our partners and their clients, we can take learned lessons and find new, innovative ways of addressing tomorrow’s challenges,” Harrison said.
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