Specialist Insurance for Geothermal Energy Projects
Geothermal energy makes use of naturally occurring heat beneath the Earth’s surface, providing a source of renewable energy that can be used for heating or, in suitable projects, electricity generation.
Unlike many renewable technologies, a significant part of a geothermal project’s infrastructure and risk lies below ground. Drilling operations, wells, pumps, pipework and heat exchange equipment must work together effectively to access and utilise the available geothermal resource.
At Network Alliance Brokers, we can help developers, owners, investors and operators explore specialist insurance for geothermal energy projects, taking into account the individual technology, site and operational requirements involved.
From projects at the development and drilling stage through to established geothermal facilities, we’ll work to understand the project before approaching appropriate insurance markets.
Understanding Geothermal Energy Insurance
Geothermal projects depend heavily on underground conditions, including geology, well depth, temperature and pressure.
With significant investment in drilling, wells and specialist equipment such as pumps and heat exchangers, insurance needs to consider both underground infrastructure and the equipment operating above ground.
Who We Work With
- Geothermal Project Developers
- Geothermal Facility Owners and Operators
- Renewable Heat Projects
- Geothermal Power Generation Projects
- Renewable Energy Investors
- Drilling and Engineering Contractors
- Energy Infrastructure Businesses
- Operations & Maintenance Providers
Key Risks Facing Geothermal Energy Projects
Drilling & Well Development
Accessing geothermal resources can require specialist drilling operations, with project requirements varying significantly according to geology and the depth of the resource.
Problems encountered during drilling can lead to additional work, delays or damage to specialist equipment, making this a particularly important stage in the development of a geothermal project.
Well & Casing Integrity
Once a geothermal well has been established, maintaining its integrity is essential to the continued operation of the facility.
Problems affecting well casings, seals or associated components can require specialist investigation and remedial work, particularly where the affected infrastructure is located deep below ground.
Pumps & Equipment
Geothermal facilities can rely on pumps and other mechanical systems to move fluids through wells and surface infrastructure.
Failure of critical machinery can interrupt normal operation and potentially require specialist replacement equipment or engineering expertise before the facility can return to full output.
Geothermal Fluids
Depending on the resource, geothermal fluids can contain minerals and other naturally occurring substances that may contribute to corrosion, scaling or deterioration within equipment and pipework.
Effective monitoring and maintenance can therefore be important for protecting equipment and maintaining reliable operation.
Heat Exchangers
Once geothermal energy reaches the surface, heat exchangers, pipework, control equipment and other infrastructure may be required to transfer and distribute that energy.
Damage or failure affecting these systems can disrupt the facility even where the underground geothermal resource remains available.
Operational Downtime
Problems with a well, pump or other critical component can restrict the amount of heat or electricity a facility is able to produce.
Where downtime follows an insured event, Business Interruption Insurance may provide protection against certain resulting financial losses, depending on the cover arranged.
Your Geothermal Energy Insurance Questions Answered
Can insurance cover geothermal wells as well as surface equipment?
Depending on the project and insurance arrangements available, cover may extend beyond buildings and surface machinery to include elements associated with geothermal wells. The scope of cover will need to reflect the design and characteristics of the individual facility.
Does the depth of a geothermal project affect its insurance?
It can. Well depth can influence drilling complexity, equipment requirements, accessibility and the potential cost of remedial work. Insurers may therefore consider the depth and construction of wells alongside the wider characteristics of the project.
Are geothermal heating and electricity generation projects insured differently?
They can have different requirements. A geothermal heat project and a facility generating electricity may use different equipment, operate at different temperatures and involve different infrastructure. Insurance should therefore be considered according to how the geothermal resource is being used rather than applying the same approach to every project.
Why Choose Network Alliance Brokers?
Geothermal projects require an understanding of assets that extend far beneath the visible facility. The geology of the site, construction of the wells and equipment used to extract and transfer heat can all influence the risks involved.
Network Alliance Brokers can work with you to build a clear picture of your project and its infrastructure before discussing the risk with suitable insurance markets.
Our aim is to arrange protection that reflects how your geothermal facility actually operates, while providing ongoing support as the project progresses and your insurance requirements change.
Talk to Us About Geothermal Energy Insurance
Whether you’re planning a new geothermal development, undertaking drilling work or operating an established renewable heat or power facility, Network Alliance Brokers can help you explore appropriate insurance options.
Contact our team today to discuss your Geothermal Energy Insurance requirements and find out how we can support your project.
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