Managing Director, Power & Renewable Energy
As efforts to decarbonize continue, demand for carbon capture and storage (CCS) projects — which are able to remove carbon from the atmosphere — is growing . Plans for more than 100 new CCS facilities were announced in 2021. And the global market for CCS is projected to reach $4.9 billion by 2026.
While CCS projects bring forth multiple opportunities for organizations, they are also fraught with new risks, ranging from the inadvertent release of captured carbon dioxide (CO2) to projecting and funding for proper decommissioning. Unless these challenges are addressed in a timely and effective manner through mitigation tactics and insurance solutions, investors and developers risk forfeiting tax credits that make these projects financially feasible.
Aside from securing the most effective insurance solutions, developers can protect the financial stability of a CCS project by implementing risk mitigation techniques during a project’s construction, operation, and decommissioning phases.
Marsh’s team can help you identify, understand, and address your exposures. Our multidisciplinary team of specialists, spanning tax, environmental, surety, engineering, and project risk, can take a holistic review of your engineering and risk management plans to identify your exposures and develop a risk mitigation strategy based on your project’s specific location and CCS operation.
Among other areas, our team can support you by:
Marsh’s experienced team of advisors can help you better manage volatility and identify ways to reduce the total cost of risk for your CCS projects.
Marsh’s US Energy & Power team of over 100 specialists has extensive experience in all aspects of regulated and non-regulated power generation and electric and gas utility operations, including enhanced oil recovery using CO2. Our team members across tax, environmental, surety, engineering, and project risk have a thorough knowledge of decommissioning trusts, as well as deep experience working with state regulators, navigating interstate pipeline construction and operation, and advising on loss control measures. Marsh has advised on many carbon capture and storage projects and is able to leverage industry-specific knowledge to help you confidently invest in your future.