New Energy Risk and XL Group Provide Innovative New Performance Warranty Insurance Product to Bloom Energy

22 Oct 2013

Bloom grass

New Energy Risk, Inc. has announced that it worked closely with XL Group as a risk consultant, to develop an innovative new insurance product that enabled Bloom Energy to finance the installation of dozens of Bloom Energy Servers, totaling 6.1MW in capacity. These systems are expected to generate over 50 million kilowatt hours of clean, reliable electricity.

The XL insurance policy assures the performance of Bloom’s fuel cell server technology over the term of the financing. The solution was developed with consultants New Energy Risk, and with Arthur J. Gallagher Risk Management Services acting as broker. According to advisors representing the lender, Silicon Valley Bank, the XL solution was viewed as “the first insurance warranty product they have seen, that actually makes a difference to the lender.”

The transaction involves the use of an innovative financing approach developed by Bloom, New Energy Risk, and Bloom’s finance and insurance partners, whereby the energy off-taker entered into a long term agreement to purchase the electricity (a PPA), and the generation of the electricity is backed by a Bloom Product Performance Warranty, which is in turn fully insured by XL. Financing is being provided by Silicon Valley Bank. This high-value approach has enabled uniquely efficient and cost effective financing.

Fuel Cell Today spoke to New Energy Risk about the insurance policy which underpins the guaranteed quarterly output of Bloom’s fuel cell unit. With this policy in place, the outstanding debt provided by the bank financing the project is guaranteed, even in the event that no electricity is produced. New Energy Risk is also in discussions with other fuel cell manufacturers about the possibility of offering similar products for other projects in the sector.

About New Energy Risk

New Energy Risk provides innovative data analytics, strategic consulting, and financial risk transfer solutions to the renewable energy industry, worldwide. New Energy Risk is a privately held firm based in Menlo Park, CA and Fairfield, CT. For more information, visit www.newenergyrisk.com.

About XL Group plc’s Insurance Operations

XL Group plc’s insurance companies offer property, casualty, professional and specialty insurance products globally. Businesses that are moving the world forward choose XL as their partner. To learn more, visit xlgroup.com/insurance

About XL Group plc

XL Group plc (NYSE: XL), through its subsidiaries, is a global insurance and reinsurance company providing property, casualty and specialty products to industrial, commercial and professional firms, insurance companies and other enterprises throughout the world. XL is the company clients look to for answers to their most complex risks and to help move their world forward. To learn more, visit xlgroup.com

XL Group is the global brand used by XL Group plc’s insurance and reinsurance subsidiaries.

About Bloom Energy

Bloom Energy is a provider of breakthrough solid oxide fuel cell technology generating clean, highly-efficient on-site power from multiple fuel sources. The company was founded in 2001 with a mission to make clean, reliable energy affordable for everyone in the world. Bloom Energy Servers are currently producing power for several Fortune 500 companies including Google, Walmart, AT&T, eBay, Staples, The Coca-Cola Company, as well as notable non-profit organizations such as Caltech and Kaiser Permanente. The company is headquartered in Sunnyvale, CA. For more information, visit www.bloomenergy.com.

About Arthur J. Gallagher Risk Management Services.

Arthur J. Gallagher Risk Management Services, Inc., a division of Arthur J. Gallagher & Co. (NYSE:AJG), is a global risk management and insurance services provider headquartered in Itasca, Illinois. It has operations in the U.S., Canada and Bermuda, and offers client-service capabilities in more than 140 countries through its own expert advisors and a network of correspondent brokers and consultants. Arthur J. Gallagher Risk Management Services’ advisors specialize by industry and coverage types—developing solutions uniquely tailored to individual client requirements. http://www.ajg.com

     

Source: New Energy Risk (e-mailed press release)

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