Kathmandu. Worldwide, the insurance premium collection for hydrogen projects is expected to exceed $3 billion by 2030.
According to Allianz Commercial, global efforts for hydrogen as a major energy source are growing and more than 1,500 projects are currently planned. In 2021, there were only 200 projects.
Governments in about 60 countries have adopted national hydrogen strategies. According to the Hydrogen Council and McKinsey, these projects will require $680 billion in investment by 2030. Which will significantly increase the demand for insurance to manage related risks.
There are currently 617 projects in Europe. These projects are leading development with an investment announcement of $199 billion. However, the future of hydrogen depends on a number of factors, including policy, trade, demand and infrastructure costs.
Safety and risk management are major issues due to the flammability of hydrogen and the possibility of explosion. Increasing the use of hydrogen in all industries will require strong safety measures and strong insurance support.
According to Anthony Vasalo, Aliange Commercial’s global head of natural resources, insurance companies play an important role in enabling hydrogen development through risk counseling, coverage and innovation support. He stressed the need for industry collaboration to develop expertise and manage challenges.
Hydrogen is gaining popularity in the Asia Pacific region as part of the region’s clean energy transition. It has long been used in the chemical and refinery sectors. However, its expansion into the power generation, transportation and marine industries is presenting new risks.
According to Trent Canings, regional head of natural resources and construction at Allianz Commercial Asia Pacific, cross-border cooperation in storage and transportation infrastructure will be critical to hydrogen use in the region. Insurance companies expect hydrogen-related risks to affect many commercial sectors.
According to Vasalo, energy, natural resources and liabilities will see the biggest impact in the next five to 10 years. Then there will be property and maritime areas.
