Hydrogen fuel insurance market predicted to reach £2.2bn by 2030

The global demand for hydrogen fuel facilities is predicted to rise by 60% by 2030 and may quintuple by 2050, driven by the global need and desire to transition to green fuels and sustainable energy generation, according to new statistics published by insurer Allianz Commercial today (30 July 2025).

Allianz Commercial predicted that around £2.2bn in yearly insurance premiums may be generated by 2030 through underwriting £492bn of planned projects in this field.

The firm said that the “potential size and scope of the hydrogen economy will depend on a range of factors, including the evolving political, trade and economic environment, as well as demand”. It added that policymakers would also need to address the cost of infrastructure in order to support the market’s growth and development.

Multiple risks

Beyond the traditional construction risks associated with large infrastructure projects, hydrogen fuel plants would also need to manage common fuel plant risks – such as fire, explosion and embrittlement, as well as transport and contamination hazards.

Harald Dimpflmaier, regional head of natural resources at Allianz Commercial, said: “Evolving technologies always pose challenges, such as raising the risk of serial losses, where a common fault requires the replacement of equipment across a project or multiple projects.

“For example, a large hydrogen production facility could involve hundreds of electrolysers, with the same design replicated at multiple plants. Serial defect claims have already been seen with wind turbines, leading to large losses for companies and insurers.

“Meanwhile, as the hydrogen industry scales up, supply chains may come under increasing pressure, with the risk of capacity constraints and delays for replacement parts.”