New Energy Risk

New Energy Risk has been supporting first-of-a-kind clean tech deployment for over a decade. The term "FOAK" has come noticeably to the fore recently, as innovators, capital and government try to figure out how to bring essential innovations to market. Is FOAK a useful concept though? Ben Cader-Beutel, airs his doubts in NER's latest blog. https://lnkd.in/gRuNdHR2 If you find yourself provoaked, tell us why in the comments... #foak #technologyperformanceinsurance #innovation #climatetech

We're looking forward to judging the first-ever first-of-a-kind pitch night as part of New York Climate Week. Richard Riley will be representing NER's technoeconomic risk expertise as part of a panel of leading FOAK partners and investors. Please reach out to Richard or Emanuel if you plan on attending and would like to connect. Thank you Deanna Zhang and team for bringing the FOAK ecosystem together! #FOAK #NYCW

Join us next week at the 2024 Argus North American Biofuels, LCFS & Carbon Markets Summit! Connect with Krista Sutton to learn how New Energy Risk is supporting the commercialization of sustainable fuels projects with technology performance insurance solutions. 

NER is excited to be collaborating with Erthos and CAC Specialty to break new ground for solar and technology performance insurance. We’re underwriting a greener future by innovating alongside the innovators and tackling the hard problems. https://lnkd.in/dpmDxSap

Join us next week at RE+ in Anaheim, CA. Connect with George Schulz, Richard Riley, and Ben Cader-Beutel to learn how New Energy Risk's technology performance insurance solutions can accelerate customer adoption and deployment of clean energy technologies.

A short piece from NER's Senior Scientist, Shawn Lee, on battery fires, how they occur, and how frequently. https://lnkd.in/e3G7g26N

“The reason for stage-gating the development process is to fail fast.” Capital project experts like Brent Flyvberg and Independent Project Analysis agree: big projects tend to run over schedule and over budget, and bigger projects tend to run more over schedule and more over budget, on a CAPEX-normalized basis. How can developers of new technology projects properly estimate costs during development to minimize the need for costly change orders down the line? Enter front end loading, or FEL. Originating in chemicals project development, front-end loading is one of several stage-gating capital project frameworks designed to de-risk project development as early as possible. Through deliberate, iterative engineering and project design, projects gradually narrow down scope and cost estimates through a process that culminates in a project’s final investment decision (FID). A proper FEL process is designed to continuously evaluate a project’s viability. Before beginning the scoping and engineering design (FEL-2), projects must prove out a sound business case in FEL-0 and refine it in FEL-1. At each stage, the project passes a go/no-go decision gate to make sure it is still delivering the benefits it set out to deliver and has narrowed the risk and uncertainty to an acceptable level to progress to the next stage. Otherwise it is recycled to a previous stage or canned. FEL represents a rare similarity between capital projects and the Silicon Valley model of software development: the fail fast philosophy. -- To learn more see New Energy Risk’s Project Finance Guide. Over the next several weeks, we’ll feature more sections from the report here on LinkedIn. The full guide is available for free on our website: https://lnkd.in/gzzruxJg #insurance #innovation #RenewableEnergy #climatetech #projectdevelopment #FOAK Richard Riley Brad Price, P.E. Ben Cader-Beutel Krista Sutton

New Energy Risk is proud to release our annual sustainability report for 2023. Among its highlights, NER and its insurance partners have now supported projects that will abate 669,000 tons of carbon emissions per year, reflecting the importance of insurance in delivering the solutions required to support the energy transition. Together, the industry is Underwriting a Greener Future®. https://lnkd.in/dHEhMZNU #sustainability #insurance #energytransition #technologyperformanceinsurance

“A technology project finance transaction relies on convincing lenders to assume well-mitigated technology risk.” But, what is technology risk, really? Answering this question is the key to quantifying and mitigating it. 9️⃣ How helpful is the TRL Framework? Somewhat. The NASA-developed, and DOE-approved, Technology Readiness Levels (TRLs) provide a helpful tool for understanding technology scaleup; however adaptations of the framework can often be misconstrued. Even if individual unit operations of a process are considered TRL-9, this does not mean that an entire process or project can be considered as such. More on TRLs coming soon. See also: Adoption Readiness Levels. ✒ Let’s look to contracts. The easiest indicator of technology risk is the willingness of the EPC to assume technical risks through to, or beyond, the commercial operations date (COD). Unwillingness to assume these risks puts out of reach the ideal high standard of EPC contract that capital providers find familiar and consider financeable. Where gaps exist, they will need to be filled in order to secure financing. 🥇 FOAKs? NOAKs? In the context of new technology, first-of-a-kind projects have by definition an element of technology risk, and nth-of-a-kind projects do too. Lenders are happiest once you stop counting. As the sponsor of the project, it’s the developer’s obligation to ensure that technical risks are understood, communicated, and mitigated. -- Over the next several weeks, we’ll feature sections in the report here on LinkedIn. The guide is available for free on our website: https://lnkd.in/gzzruxJg #insurance #innovation #RenewableEnergy #climatetech #projectdevelopment #FOAK Richard Riley Brad Price, P.E. Ben Cader-Beutel

Ian Smith at the Financial Times emphasizes the need for a staggering $10 trillion of insurance cover to support the energy transition projects necessary to meet global net zero goals. New Energy Risk sees this playing out daily with an ever larger volume of projects at growing scale. We continue to develop the insurance capacity to support our technology performance insurance and other risk transfer solutions, including our recently announced launch of a new Lloyd's lineslip dedicated to supporting the energy transition. https://lnkd.in/evxeNh5f