Willis Insurance has launched a globally applicable carbon capture and storage (CCS) solution.
The firm, part of British-US multinational advisory WTW, claims it is the first fully integrated insurance suite designed specifically for developers and operators of CO₂ capture, transportation and storage infrastructure, adapting property, upstream energy, marine, liability and environmental protections to the unique risks of CCS operations.
While the suite of services is relevant for all clients regardless of project location, the new insurance wording is best suited for non-US projects, according to Marie Reiter, Head of Global Broking Strategy, Willis Natural Resources.
“Due to the specific conditions around , there are other insurance structures which are more appropriate for the US regulatory regime. These can be provided as part of the broader Willis offering but we would look to a different market segment for the specific coverage required for US-based projects,” she said.
Marie Reiter
“Regarding available limits and pricing, this will be highly project specific as we are seeing a great variety in operating models and project specifications at the moment. We have intentionally built the solution to be fully modular, allowing us to tailor the coverage to the exact needs of each individual project.”
This means the offering it can provide to clients is “entirely bespoke” to the regulatory requirements, contractual arrangements and coverage requirements of each CCS project.
“As we see more operational projects come to market over the next year or two, we expect to gain a clearer view of the likely limits required and appropriate pricing range,” she said.
Its solution supports clearer risk allocation and coverage designed to address bankability considerations, aligned with regulatory and carbon credit requirements and applicable to developers, emitters, operators and investors across every stage of the project lifecycle.
Willis’ service offering extends beyond traditional insurance coverage to deliver knowledge sharing workshops on best practice; risk engineering support during the FEED phase; contract review and advice on contractual risk allocation to maximise insurability and reduce retained risk; and support with lenders and regulators.
CO2 transport and storage cover includes construction all risk insurance including delay in start up; property damage for all operational CCS infrastructure including measurement, monitoring, and verification systems; specialist marine hull and cargo protection for CO₂ carrier vessels and CO₂ cargo in transit; and loss of injection, transport and storage income resulting from value chain downtime.
