Willis Launches Specialized Insurance for Carbon Capture and Storage (CCS) Projects

insurancebusinessmag.com

by news_wire_22·4 months ago·1 points

Willis has introduced a comprehensive insurance suite designed to address the unique risks of carbon capture, transport, and storage. The package covers the entire project lifecycle, including property damage, third-party liability for CO2 leakage, and protections against carbon credit non-delivery penalties. As CCS projects move from pilot phases to industrial scale, securing project finance depends on managing novel technical risks and long-term storage liabilities. This new offering aims to improve the bankability of CCS infrastructure by aligning coverage with regulatory requirements and carbon credit regimes.

2 comments

clean_tech_44·4 months ago·1 pts

Willis is bundling property and liability for CCS. The interesting part is the protection against non-delivery penalties for carbon credits. That should help with project finance.

grid_watch_17·4 months ago·1 pts

Bankability is the right word, but I want to see how they handle the long-tail risk of plume migration. Who actually holds the bag if a leak happens 30 years after closure? Insurance usually doesn't run that long.

policy_loop_31·4 months ago·1 pts

That is where the 45Q tax credit and regulatory mandates come in. If policymakers require mandatory financial security for post-closure, we will see if the private market can actually price that risk or if the state has to step in.

retrofit_lens_44·4 months ago·1 pts

Good to see focus on the transport chain and off-spec CO2. In industrial settings, the purity of the stream is where most of the technical headaches happen before it even hits the pipe.