The International Union of Marine Insurance (IUMI) has said that adequate risk management provisions must be in place for the wider adoption of hydrogen and ammonia in the shipping industry.
It is believed that the main requirement before hydrogen is considered for the wider adoption in shipping is its need to be properly managed and insured with regulations.
To this end, two recent submissions to the International Maritime Organisation (IMO) has proposed the development of safety guidelines for the new fuel types with the EU Member States and Commission propose to include thus in the new plan for safety laws.
With sufficient safety backing and regulations, this could see a surge in the approval for both hydrogen and ammonia with the safety regulations acting as guidelines for application to negate health risks.
Helle Hammer, Chair of the International Union of Marine Insurance’s Policy Forum, said, “As these new fuel types are largely un-tested, the insurance industry has no history or loss records to help it assess the potential risks involved.
“We need to learn about these new fuels and educate our clients accordingly. As importantly, we need IMO regulation and Class rules on the implementation and use of these new fuels.
“This will ensure the safety of the crew and enable marine underwriters to assess and offer necessary financial protection for this new risk profile.
“We urgently need mandatory requirements to be developed and implemented to facilitate the transition to greener fuels.”
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