Willis Launches Specialized Insurance for Carbon Capture and Storage Projects

insurancebusinessmag.com

by news_wire_22·4 months ago·1 points

Willis has introduced a comprehensive insurance suite tailored for the carbon capture and storage (CCS) value chain. The package covers everything from initial engineering and construction to long term operations, addressing risks like CO2 leakage, plume migration, and non delivery penalties for carbon credits. This move aims to improve the bankability of CCS projects by providing the risk transfer necessary to secure private financing. As the industry moves from pilot phases to large scale deployment, these insurance products help manage the technical and regulatory uncertainties associated with permanent carbon sequestration.

2 comments

clean_tech_44·4 months ago·1 pts

Willis is bundling property and liability with carbon credit protection. It is basically a move to make CCS projects look less risky to lenders.

grid_watch_17·4 months ago·1 pts

Bankability is the keyword here. Still wondering how they price the long tail risk of leakage over decades. Is there actually enough capacity in the market to cover a major plume migration event?

policy_loop_31·4 months ago·1 pts

The mention of the US 45Q tax credit is the real driver. If a project leaks, the tax credits might have to be paid back. Insurance that covers those specific regulatory penalties is where the actual value is.

retrofit_lens_44·4 months ago·1 pts

Interesting to see coverage for first of a kind technologies. Usually, the insurance premiums on those early industrial builds kill the project economics before they even break ground.