Scaling high-potential renewable technologies

Emerging clean energy technologies such as green hydrogen, next-generation geothermal and space-based solar power (SBSP) are moving closer to commercial reality. But scaling from innovation to widespread deployment depends on proving economic viability, resilience and effective risk management. As competition intensifies, only the most cost-efficient, reliable and scalable solutions will succeed.

Green hydrogen

The green hydrogen story is no longer about whether the technology matters, but where it can be deployed safely, with managed supply-chain exposure and at an at affordable cost. Strongest growth potential lies in chemical feedstocks such as ammonia and methanol, alongside applications across oil refining, steel manufacturing, long-duration grid balancing and jet aviation. The technology is gaining geopolitical importance as countries pursue energy security and diversification, with major projects emerging across Asia, the Middle East and Africa.

But barriers remain:

High production costs compared to fossil-based hydrogen
Policy and regulatory uncertainty affecting investment confidence
Lack of infrastructure (pipelines, storage, ports)
Supply chain volatility
Safety risks due to flammability and material impacts
Limited operational history, creating insurance and financing challenges

To scale successfully, projects must demonstrate clear economics and manage risk effectively. Solutions include performance guarantees, strong OEM partnerships, robust safety systems and better contractual risk allocation. Ultimately, success will depend on reducing costs, prioritizing high-value applications and establishing secure offtake agreements that make projects bankable.

Geothermal

Recent breakthroughs have expanded geothermal’s geographic reach into regions such as Europe and much of North America, delivering low‑carbon, dispatchable power where natural geothermal reservoirs previously were not viable.

Enhanced geothermal systems (EGS) create engineered underground fracture networks, enabling heat extraction from previously inaccessible rock formations. Meanwhile, closed-loop systems circulate fluids through sealed pipes, reducing subsurface uncertainty and improving predictability.

Cost and scalability are also improving through techniques adapted from oil and gas, such as horizontal drilling and hydraulic fracturing. Repurposing existing wells can significantly reduce costs, as drilling accounts for more than half of geothermal project expenditure.

Despite these advances, risks remain:

Uncertainty in locating and accessing viable heat resources
Subsurface unpredictability, especially in EGS
Potential well-control incidents and environmental hazards
High-cost failures requiring specialist intervention
Induced seismicity and regulatory shutdown

Insurance plays a critical role in addressing these challenges. Early integration of risk assessment into project design, along with clearer, tailored insurance frameworks, can improve outcomes, reduce costs and enhance investor confidence. Geothermal’s growth will depend not just on technology and policy, but on how effectively developers de risk the subsurface through smarter engineering and innovative insurance solutions.

Space-based solar

SBSP has moved from science fiction to science fact. Social media platform giant, Meta, have reached an agreement with SBSP start-up, Overview Energy, to secure early access to up to 1 gigawatt (GW) of space-based solar capacity with demonstration targeted for 2028 and commercial delivery by 2030.

Unlike terrestrial solar, SBSP benefits from continuous sunlight, potentially reducing reliance on energy storage. Demand is likely to be driven initially by energy-intensive sectors such as data centres seeking low-carbon, reliable power.

But risk follows innovation, and SBSP introduces complex, multi-layered risks spanning space operations and energy infrastructure:

Regulatory challenges across space, energy and aviation sectors
Risks in wireless power transmission (beam control, losses, safety)
Launch, in-orbit assembly and operational hazards
Cyber security, liability and revenue interruption risks
Space debris and collision exposure

To move toward scalability, developers and insurers must adopt staged de-risking. This includes validating technology through demonstrators, proving safety systems, modelling risks and clearly allocating liabilities across project phases.

From innovation to infrastructure

The path from innovation to infrastructure is rarely linear. It demands clarity, coordination and confidence across the entire value chain. As clean energy technologies move from prototype to portfolio, the role of the insurance broker becomes increasingly pivotal—linking innovation with capital and risk transfer. By bringing together developers, financiers and insurers, brokers help shape solutions that make projects both insurable and investable.

Download the full article to find out which strategic actions risk managers can take as technologies embark on commercial scale up.