Pen Underwriting, a multi-class, multi-territory managing general agent (MGA), has launched a new risk management-led insurance product serving the needs of the waste-to-energy anaerobic digestion (AD) industry, thereby entering into the renewable energy sector.

Designed to cover the full range of property and liability exposures faced by AD businesses, Pen’s comprehensive suite of insurance covers is backed by A-rated capacity. The product uses one purpose-built policy wording.

Pen’s team will serve clients through 24/7 loss mitigation services, equipped with skilled emergency environmental response teams 365 days a year. These teams will provide immediate support in the event of an incident and help ensure operations resume as quickly as possible.

Additionally, pre-quote surveys will also identify and address any potential hazards to enhance the operational resilience of sites and help avoid costly disruptions.

AD is often referred to as one of the ‘cleanest’ forms of renewable energy, converting organic waste to energy while creating other beneficial byproducts such as nutrient-rich fertiliser, which helps manage waste sustainably while also creating a renewable energy source, reducing reliance on fossil fuels and contributing to net zero emissions goals.

According to the international collaboration programme IEA Bioenergy, the UK is already the third largest producer of biogas from AD, after Germany and China. There are already more than 750 AD plants operational in the UK, and, fully deployed, the UK AD and biogas industry is expected to provide between 20% and 50% of UK gas demand by 2050.

Pen sees an opportunity in this market and is offering a comprehensive product offering that supports a wide range of AD operations, including wastewater treatment plants, animal and farming waste, food and drink production facilities, landfills, and recycling facilities.

Adam Shefras, Managing Director, Hazardous Goods & Environmental Industries, Pen Underwriting, commented, “Anaerobic digestion not only plays a vital dual role in sustainable waste management and clean energy production, but also has a crucial part to play in the UK’s strategy to achieve net zero emissions by 2050.

“Given its alignment to many of the industries and activities we already support, it was our natural entry point into the renewable energy sector. Over the past 25 years, the UK biogas industry has transformed itself through technological innovation, market evolution and regulatory change from a niche waste management solution to an industry of scale and bedrock of renewal energy infrastructure.”

He continued, “And yet there are few insurance markets that specialise in understanding AD and its exposures, resulting in limited choice for brokers and their clients. We’re here to change that, while simultaneously helping AD businesses proactively manage their risks, support their growth and mitigate any losses.”

Sarah Breslin, Managing Director, Commercial for UK & Ireland, Pen Underwriting, added, “This is another great example of Pen’s ongoing investment into extending and diversifying our product offering for the benefit of brokers and their clients.

“By bringing underwriting expertise and greater market choice into important but underserved sectors like AD, we are also helping support UK industries with significant growth potential and facilitating the nation’s energy transition into cleaner, more renewable forms.”