- Hydrogen is rapidly emerging as a cornerstone of the global energy transition, with over 30 countries investing more than $70 billion to scale its production and adoption across sectors like energy, transport, and industry.
- Safety and operational risks remain a major concern, as hydrogen’s flammability and leak detection challenges can lead to costly incidents—emphasizing the need for robust risk management frameworks.
- Allianz is playing a dual role as both insurer and investor, developing specialized insurance solutions while also funding hydrogen infrastructure projects to support a safe and scalable energy future.
Allianz Global Corporate & Specialty (AGCS) highlights hydrogen’s growing role as a vital energy carrier in the global shift away from fossil fuels, reports Safety4sea.
When produced through low-carbon or renewable methods, hydrogen can significantly reduce emissions across energy, transport, and industrial sectors. Its versatility and scalability make it a strong candidate for building clean energy infrastructure on a global scale.
Currently, over 30 countries have introduced hydrogen roadmaps, collectively supported by more than $70 billion in public funding. This global momentum reflects hydrogen’s transition from niche applications toward broader deployment, driven by large-scale projects and adoption across diverse industries.
Managing the Risks of Hydrogen at Scale
Despite its potential, the rapid expansion of hydrogen technologies introduces notable risks. AGCS warns of the safety challenges associated with hydrogen, particularly its flammability and the difficulty of leak detection due to its invisible flame and odorless nature. A significant number of hydrogen-related fires originate from undetected leaks, and recent data shows billions of euros in damages from hydrogen incidents over the past five years.
Additional risks include material degradation, such as embrittlement and cracking in metals exposed to hydrogen. Operational failures in hydrogen production and storage facilities can lead to extended downtimes, with business interruption claims often exceeding direct damage costs by nearly 45 percent.
Allianz’s Dual Role: Insurer and Investor
To support the safe scaling of hydrogen infrastructure, Allianz is developing advanced risk assessment and underwriting models tailored for the entire hydrogen value chain—from production to transportation and storage. The company expects rising insurance demand in this sector, with hydrogen-related insurance premiums projected to exceed $3 billion by 2030 as more projects become operational.
Beyond insurance, Allianz is also investing directly in the hydrogen economy. Through long-term institutional capital, the company is financing hydrogen production facilities in various regions and supporting infrastructure development that enables broader adoption of clean energy technologies.
Hydrogen’s Promise—Balanced by Preparedness
According to Allianz, the success of hydrogen as a key enabler of the energy transition depends not only on technology and investment, but also on effective risk management. By combining its capabilities as both insurer and investor, Allianz is positioned to support the hydrogen industry in building resilience, fostering trust, and attracting the capital needed to scale. With proper safeguards in place, hydrogen could become a foundation of the global decarbonized economy.
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Source: Safety4sea
