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Implications for Insurers and Investors

Return on Investment

Hydrogen will, in one way or another, become an important player in our energy system and the question for investors is not if, but when. Major turn-of-the-century stock exchange investments by car manufacturers in fuel-cell companies are an example of the potential for significant return on investment although the price of fuel cells was high at the time.

Evaluation Process

When one considers making an investment in an existing company or a new venture, the experience of the company in hydrogen technologies, the qualifications and knowledge of its personnel, the involvement of government programs, and participation in hydrogen demonstration projects all help in the evaluation process.

Codes and Standards

In any new venture, making sure that stakeholders are involved from the onset to check conformity to standards and safety during design and manufacturing phases will help avoid retrofits, enhance public acceptance and prevent problems that can be difficult to detect at a later stage. These stakeholders, of course, include regulators, other civil authorities, and the public.


New hydrogen energy projects require the same insurance coverage as other projects. The prime interest of insurers is that equipment and personnel remain safe. The safety trail to protect an investment and ensure insurability includes:

  • Thorough documentation.
  • Regulatory compliance.
  • Specification compliance.
  • Verification by inspection.
  • Testing and analysis at the system and component levels.
  • Mitigation programs such as the proper evacuation plan of a facility.
The use of safety devices such as reliable hydrogen and fire detectors are also integral parts of any hydrogen safety program.