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Reference Points for Insurers
There are two reference points for insurers for new hydrogen projects. First, hydrogen is used extensively on a daily basis in large quantities in the process industry such as in refineries and ammonia synthesis. Second, hydrogen risks can be compared with those of natural gas.
Many regulations are in place for large scale use of hydrogen and, where new practices are involved, we can draw on the experience with natural gas. In addition, there is an active program for development of new international standards for the newer energy applications underway with ISO Technical Committee 197.
The status of new standards should be checked regularly. In the case of new projects, a proper safety assessment, involving the identification and the likelihood of potential failure modes and mitigation procedures can assist in identifying problem points and ensure that steps have been taken to address them.
While the proponents and managers of new hydrogen projects are expected to understand hydrogen, its safe handling and past problems and how they were solved, another reference point for new projects with new technologies is well-documented demonstration projects. Involvement in demonstration projects may not be profitable, but it gives public exposure to new products and technologies … reveals real and potential problems … and evaluates them at little cost in a realistic environment.