June 18, 2024

Political Commentary

News Politics Business Sports

Battery Manufacturer Hithium to Be Reinsured by Munich Re

2 min read

Article content

MUNICH — Hithium, the stationary battery producer, announced the agreement with Munich Re to provide warranty reinsurance for its energy storage systems (ESS). The reinsurer will cover both product and performance warranties. The agreement will thus reduce ESS project owners’ risk as well as Hithium’s, providing system owners with coverage even in case of a manufacturer insolvency while also shielding Hithium from excessive warranty costs and protecting the company’s balance sheet.

Article content

The warranties against performance degradation and the risk of defects, with coverage of up to 15 years, will be among the longest-term warranty insurances available in the energy storage industry. The project coverage also enables Hithium to provide a flexible insurance structure. Munich Re’s backing for larger-scale projects is reflected in the “Warranty Partner Label Agreement” it has granted Hithium.

Article content

As one of the global leaders in reinsurance, Munich Re enables emerging business models like stationary energy storage by fostering trust, financial security, and technical expertise. Prior to undertaking a new warranty insurance obligation, the company completes a technical due diligence process to assure product and manufacturer viability.

ESS project developers are currently positioned to benefit from a fast-growing market for energy storage, due to the central role the systems play in the transition to renewable energies by making them reliably available around the clock. It is crucial for developers and their investors to be able to establish the bankability and security of projects. As energy storage technology becomes more complex and large-scale systems integrate multiple high-tech components, moreover, the need for warranty insurance has gained importance.

Hithium Senior Director Product & Marketing Winfried Wahl commented: “Munich Re sets the global standard for due diligence and financial security in energy storage….

Business Wire

2023-10-26 03:00:27

All news and articles are copyrighted to the respective authors and/or News Broadcasters. VIXC.Com is an independent Online News Aggregator

Read more from original source here…

Leave a Reply

Copyright © All rights reserved. | Newsphere by AF themes.