CCS projects may be uninsurable
Sep 30, 2015
Bishop Hill in Climate: WG3

While looking to see what the insurance industry made of Mark Carney's speech (they seem to have ignored it so far) I chanced upon an article in Insurance Times about CCS.

Insurers will be reluctant to cover projects that capture carbon emissions and store them permanently underground, or they may charge “large risk premiums”, according to Royal Dutch Shell.

“Insurance will be able to address only part of the financial risk exposure,” Shell said in a report on its planned Peterhouse Carbon Capture & Storage (CCS) project that the company posted on the Department of Energy & Climate Change website.

“As the risk can currently neither be defined nor quantified, no insurance solutions are available,” Shell said.

(They mean Peterhead rather than Peterhouse I think). Another nail in the coffin, I would say.

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