Ecostrat, a leader in assessing, developing, optimizing and managing biomass supply chains, and New Energy Risk (“NER”), a wholly owned division of Paragon Insurance Group and leading provider of customized technology performance insurance solutions for energy transition projects, have been selected from a pool of more than 60 applicants as a winner of InnSure’s Insurance Innovation Prize. The $5 million, government-backed prize is awarded to teams working on insurance products and policies that fill gaps in the (re)insurance market for the energy transition. Recognized for Ecostrat and NER’s partnership to develop Feedstock Supply Insurance© (“FSI”), this award underscores both companies’ commitment to strengthen the viability of biobased projects by mitigating supply chain risks and facilitating long-term financing.
Feedstock Supply Insurance© (FSI) is an insurance offering that aims to mitigate risk in biomass feedstock supply chains. FSI will effectively cap feedstock costs and secure long-term project debt repayment obligations by transferring risk from project developers and capital providers to A-rated insurance markets. FSI will strengthen the creditworthiness of biomass feedstock suppliers with greater certainty for return on investment. The expected outcomes of FSI include lower project debt costs, greater access to larger pools of capital and a more rapid scale-up of the global bioeconomy.
Jordan Solomon, President and CEO of Ecostrat, stated, “We are proud to have been selected for this prestigious award, and are confident that it will support our goal of catalyzing development of bioenergy in New York State and throughout North America by using insurance to create investment grade biomass supply chains.”
George Schulz, Managing Director at New Energy Risk, added, “NER continues to support the energy transition with creative risk solutions that accelerate the deployment of breakthrough technologies. This award from InnSure and NYSERDA supports our ongoing partnership with Ecostrat to bring FSI to New York State and the broader bioeconomy markets, and we look forward to continuing this important work.”
Supported by the New York State Energy Research and Development Authority (“NYSERDA”), the Insurance Innovation Prize promotes research and development activities that expand affordability and accessibility of insurance solutions for energy-related technologies and narrow the gap between science, engineering, and underwriting approaches. With at least $10 trillion of insurance coverage needed to reach net zero by 2030, it is essential that insurance and climate innovators across sectors come together to create new and innovative ways of underwriting the associated risks.
For more information, or to learn how FSI can apply for your project(s), please visit https://ecostrat.com/feedstock-supply-insurance/ and https://newenergyrisk.com/feedstock-supplyinsurance/
