Paratus Holdings to expand portfolio with renewable power price risk cover

Paratus Holdings has expanded its commercial operations to include renewable power price insurance, a statement released yesterday (17 January 2024) said.

The firm’s new insurance offering aims to protect producers and consumers of renewable power and transition fuels from energy price risks.

Chief executive and founder Gus Majed said that “while the energy transition presents significant opportunities, complex risk management challenges remain”.

“Paratus began with a simple belief that there must be a better way for industry to protect against energy price volatility,” he added.

“Our proprietary insurance-based risk management product materially improves returns compared to traditional alternatives.”

Strategy advancement

Paratus’ move into covering energy price risk follows the firm receiving investment from Ara Partners, which specialises in industrial decarbonisation investments.

The funding round closed yesterday (17 January 2024) and the money raised remains undisclosed, according to Crunchbase.

“With Ara’s investment, partnership and network, we will be able to significantly scale the Paratus offering, creating enhanced value opportunities for our customers and realising our significant potential,” Majed said.

Paratus is based in Guernsey and is regulated by the Guernsey Financial Services Commission, while it’s business Paratus Maritime Insurance transfers risk to Lloyd’s.

“Renewable electricity and green fuels are evolving from niche products reliant on subsidies to dominant, supply [or] demand-driven products across global energy markets,” Christopher Picotte, partner at Ara Partners, said.

”Paratus has pioneered an innovative market-based solution that will give energy producers and consumers an economical and flexible way to manage risk exposure and advance their commercial strategies.

“Through our partnership, Paratus will be able to scale quickly while playing a critical role driving the universal adoption of low/zero-carbon energy.

“We are delighted to partner with Gus and the management team and to support the growth of the company.”