GCube secures more biomass construction underwriting capacity
GCube Insurance Services Inc., the leading provider of insurance for the renewable energy industry, has secured $175 million in additional construction underwriting capacity to assist the development and evolution of the international biomass and geothermal energy markets.
The new capacity marks a major milestone for the insurance market’s appetite to have a dedicated approach for these key sectors and helps to safeguard future energy project development and innovation.
As biomass energy continues to expand, most notably in North America, the equipment and technology has become increasing more sophisticated and advanced. As a result, there has been an increased desire for renewable energy insurance services to provide greater financial security to construct new facilities and overcome future commercial barriers to growth.
The GCube underwriting capacity agreement marks the first significant investment in resources and capacity made by an insurer in the biomass and geothermal sectors of renewable energy. It also reflects the increased ambitions of key biomass developers now operating in the North American market.
“Emerging energy markets will always present numerous technical and economic risks, and the geothermal and biomass markets are no exception,” said John McLane, president GCube Insurance Services. “These sectors present risk profiles very different than other renewable technologies and traditional power generation.”
“As new and existing clients begin to expand their existing energy portfolios and look for growth, it’s imperative that we not only support these initiatives but work closely with them to offer advice and assistance along the way,” he continued. “With the additional capacity in place, we’ve underwritten some new projects and are currently in advanced talks with a number of key participants who have become increasingly active in this space. With international developers and investors keen to capitalize on national government incentives, we expect significant growth within these markets throughout 2013.”