Solutions

Carbon Capture and Storage Insurance

Marsh’s specialists can help you secure the right insurance coverage for your carbon capture projects.

Coverage

Tailored to your risk profile and aligned with the project location’s regulatory and financing requirements.

Analysis

Of potential exposures, including subcontractor financial stability, potential supply chain issues, and more.

Development

Of a risk register and risk management plan, including procedures for addressing claims or losses.

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.

Reducing risks for carbon capture projects

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:

  • Assisting during underwriting meetings to explain your project plan and help to build an appropriate insurance program suited to your risk profile and that meets regulatory and financing requirements.
  • Helping you develop a project risk management plan that includes an overview of risk management procedures and a plan for addressing third party claims or first party losses during construction, operation, and post-closure.
  • Facilitating the establishment of a risk register, allowing you to prioritize different risks and establish mitigation strategies for those that are identified as significant. 
  • Supporting with a subcontractor analysis that checks subcontractors' financial stability and track record. 
  • Providing guidance on potential supply chain interruption and delays, and helping you identify alternatives in the case of a crisis that affects needed supplies.
  • Assisting with the application process for Class VI permits, including helping you complete the required regulatory forms. 
  • Determining the amount of funds required to decommission the site and the best way to secure the amount.

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.

Why Marsh

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.

Reducing risks for carbon capture and storage projects: A planning guide for risk professionals

This guide identifies four key risks associated with carbon capture and storage projects and ways to mitigate them.

Our people

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Dan McGarvey

Managing Director, Power & Renewable Energy