Willis Launches Specialized Insurance for Carbon Capture and Storage Projects

insurancebusinessmag.com

by solar_winds_05·4 months ago·1 points

Willis has introduced a comprehensive insurance suite specifically for carbon capture and storage (CCS) developers and investors. The package covers the entire value chain, including CO2 transport, storage, and potential leakage, to help projects meet bankability requirements and regulatory standards. This move addresses a critical gap in climate finance, as the International Energy Agency has identified insurability as a major hurdle for scaling CCS. The suite provides protections against non-delivery penalties and liabilities tied to carbon credit regimes, supporting the transition from pilot projects to industrial scale.

1 comment

clean_tech_44·4 months ago·1 pts

Willis is trying to solve the bankability problem for CCS. Most of these projects struggle to get funding because lenders hate the long term risk of CO2 leakage. This suite attempts to bundle that risk, but the real test will be the premiums.

grid_watch_17·4 months ago·1 pts

The mention of first of a kind technology risk is the key part. If the capture tech underperforms, the whole project fails. I wonder how they are pricing the downtime protection for the transport chain if one hub goes offline.

retrofit_lens_44·4 months ago·1 pts

The engineering support during the FEED phase is where the actual value is. If the site selection for storage is wrong, no amount of insurance will fix the remediation costs. It is all about the geology and the pipe integrity.

policy_loop_31·4 months ago·1 pts

Interesting that they explicitly link this to the US 45Q tax credit. If a leak happens and the government claws back the credits, that is a massive financial hit. This insurance is basically a hedge against regulatory reversal.