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ZURICH, Sept. 30, 2013 /PRNewswire/ -- XL Group's Complex Accounts team is pleased to announce that it has provided an innovative new Performance Warranty
insurance product to Bloom Energy of
Sunnyvale, California. The new cover XL Group developed has enabled Bloom Energy to finance the installation of dozens of Bloom Energy Servers, totaling 6.1MW in capacity. These systems are expected to generate over 50 million kilowatt hours of clean, reliable electricity. The XL Group insurance policy assures the performance of Bloom's fuel cell server technology over the term of the financing.
Joachim Walch, Head of XL Group's Complex Accounts unit said: "Companies seeking to implement innovative projects, often in newer industries, find they cannot get the insurance cover they need. But moving forward means risk and our role as insurers is to find innovative answers to new challenges.
"Our Complex Accounts team is dedicated to work closely with the different parties involved in a project, to be able to develop risk transfer solutions that cannot be found elsewhere in the market. By having our experts on both sides of the Atlantic work together with Bloom Energy and their consultants we were able to create a bespoke insurance product that helped move this important project forward."
The insurance solution was developed together with consultants New Energy Risk and with
Arthur J. Gallagher & Co. acting as broker. According to advisors representing the lender, Silicon Valley Bank, the XL Group solution is "the first insurance warranty product we have seen, that actually makes a difference to the lender."
The transaction involves the use of an innovative financing approach developed by Bloom and its finance and insurance partners, whereby the energy off-taker entered into a long term agreement to purchase the electricity (a PPA), and the generation of the electricity is backed by a Bloom Product Performance Warranty, which is in turn fully insured by XL Group. Financing is being provided by Silicon Valley Bank. This high-value approach has enabled uniquely efficient and cost effective financing. The policy is provided by XL Group insurance company Indian Harbor Insurance Company.