{"id":10069,"date":"2025-07-01T08:52:19","date_gmt":"2025-07-01T08:52:19","guid":{"rendered":"https:\/\/www.advantagego.com\/en-us\/?p=10069"},"modified":"2025-07-01T08:52:21","modified_gmt":"2025-07-01T08:52:21","slug":"why-insurers-must-back-the-fusion-energy-future","status":"publish","type":"post","link":"https:\/\/www.advantagego.com\/en-us\/content\/why-insurers-must-back-the-fusion-energy-future\/","title":{"rendered":"The Big Question: Fusion power \u2013 too big a risk or a real opportunity for insurers?"},"content":{"rendered":"\n

It has been described as harnessing the power that drives the universe. Nuclear fusion is seen as the future of sustainable energy production for the planet.<\/em><\/p>\n\n\n\n

It should not be confused with the fission nuclear energy process which is currently at the heart of the world\u2019s nuclear power production. Unlike fission which seeks to split heavy atoms to unleash energy, Fusion is the opposite, looking to combine smaller atoms and in doing so creating a never-ending energy source.<\/em><\/p>\n\n\n\n

It is far safer than fission as it is not based on a chain reaction and as such eliminates the threat of a runaway chain reaction and with it a reactor meltdown.<\/em><\/p>\n\n\n\n

Scientists have been working for decades to create the ability to deliver safe nuclear fusion and with it unlimited and clean energy. Fusion is at the heart of stars and as such has played a pivotal role in shaping our universe and many others.<\/em><\/p>\n\n\n\n

The understanding of how fusion can be created is already in place, as is the technology that will allow energy companies to build fusion power facilities. However, risks remain and while over $7 billion has been invested in the creation of viable fusion power as yet the technology has still to be put to the use for which scientists believe will create the world\u2019s biggest industry of the future.<\/em><\/p>\n\n\n\n

It has the ability to allow countries across the world to become wholly energy sufficient and the speed with which future projects will be able to be created will allow the world to meet the rapidly rising demand for energy which has been created with the roll out of artificial intelligence.<\/em><\/p>\n\n\n\n

Many believe that fusion is now at the point where it can and needs to be commercialised and the insurance industry is set to be one of the key factors in the success or failure of fusion energy\u2019s future.<\/em><\/p>\n\n\n\n

Ian Summers, Global Business Leader, AdvantageGo.<\/strong><\/em><\/em><\/p>\n\n\n\n

<\/div>\n\n\n\n

The UK, Germany US and Chinese governments have taken a lead in the drive towards fusion energy.<\/p>\n\n\n\n

Chris Mowry, CEO, of One Energy Group, is also the CEO Champion of the UK\u2019s Sustainable Markets Initiative\u2019s (SMI) Fusion Sub Hub<\/strong>, recently addressed a meeting at Lloyd\u2019s designed to drive greater understanding of the risks but also the opportunities fusion can deliver.<\/p>\n\n\n\n

\u201cFrankly we need to move the needle on sustainability,\u201d he says, \u201cFusion is all about transforming the energy industry<\/a> into something more resilient and reliable. It can solve some of the issues the energy sector has been fighting for 100 years.<\/p>\n\n\n\n

\u201cThe recent geopolitical issues have highlighted the fragility of the access to oil and gas.<\/p>\n\n\n\n

\u201cGovernments are looking at how they can protect their access to oil.\u201d<\/p>\n\n\n\n

He adds that fusion development has created a nexus of challenges but has been \u201cwaiting in the wings\u201d for half a century.<\/p>\n\n\n\n

\u201cWe are on the cusp of commercialisation,\u201d Mowry continued. \u201cThere is billions of dollars coming into the industry and governments are stepping up.<\/p>\n\n\n\n

\u201cAll parts of the value chain need to come together to deliver fusion power. Policy, regulation, finance and insurance.<\/p>\n\n\n\n

\u201cIf we do not have the finance and insurance in place we will have the technology but we will simply be unable to deploy it.<\/p>\n\n\n\n

\u201cWe have to do this to create something which is transferable and affordable. Collectively we need to all understand what needs to be done to attract the capacity to deploy fusion power generation facilities.<\/p>\n\n\n\n

\u201cWhile the fusion industry is telling the finance and insurance communities what they want from them. Finance and insurance needs to tell the fusion sector what they require from it to be part of the value chain. Both sides need to have a deeper understanding of what needs to be done.\u201d<\/p>\n\n\n\n

Mowry adds: \u201cWe have the ability to use the power of the stars to power the earth. Governments can make the journey harder or easier to catalyse these first projects.<\/p>\n\n\n\n

\u201cInsurers have to understand they are stakeholders in this industry and the journey. It needs to understand the  value and how they can participate in making this a reality.\u201d<\/p>\n\n\n\n

Mowry continues: \u201cWe are asked what needs to be done. The last chapter of the commercialisation of fusion has not yet been written.\u201d<\/p>\n\n\n\n

On the risks and the way they can be made more appealing to insurers Mowry explains: \u201cThere are a number of questions which need to be answered including who is trying to raise the capital and what are the roles in the value chain.<\/p>\n\n\n\n

\u201cWhat we need to do is break down pieces in the chain in ways which are easier to insure. We need to take the time to have these conversations.<\/p>\n\n\n\n

\u201cAs a sector fusion needs to grow up and understand how power generation plants get built. There are different models and ways to do this and we need to see which models succeed and access finance and insurance.<\/p>\n\n\n\n

\u201cWe do not believe we need to reinvent the way power plants are designed and operated.<\/p>\n\n\n\n

\u201cYes, there are some unique differences in the production of fusion energy but reinforced concreate is reinforced concrete. We need to look at the existing energy sector and see what works.<\/p>\n\n\n\n

\u201cWe need to spend more time with fusion looking at the wider energy sector and copy what works.\u201d<\/p>\n\n\n\n

Mowry adds: \u201cWe need to be aware of hubris. Yes, it is seen as the holy grail, but fusion will need to be plugged into the global energy network.\u201d<\/p>\n\n\n\n

Mowry concludes: \u201cThere is a real belief this is really happening. We need to work out what risks can be allocated to insurers and how are they divided across the value chain.<\/p>\n\n\n\n

\u201cWe must put the risk equation together to the point that we can put the spade in the ground.<\/p>\n\n\n\n

\u201cIn terms of insurance we are talking to the right people and the opportunities are happening now.\u201d<\/p>\n","protected":false},"excerpt":{"rendered":"

It has been described as harnessing the power that drives the universe. Nuclear fusion is seen as the future of sustainable energy production for the planet. It should not be confused with the fission nuclear energy process which is currently at the heart of the world\u2019s nuclear power production. Unlike fission which seeks to split […]<\/p>\n","protected":false},"author":2,"featured_media":10071,"comment_status":"closed","ping_status":"closed","sticky":false,"template":"","format":"standard","meta":{"ep_exclude_from_search":false,"footnotes":""},"categories":[7,26],"tags":[10,14],"line-of-business":[23,30],"class_list":["post-10069","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-blogs","category-latest-insights","tag-exposure","tag-underwriting-workbench","line-of-business-energy","line-of-business-political-risk"],"acf":[],"_links":{"self":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts\/10069","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/users\/2"}],"replies":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/comments?post=10069"}],"version-history":[{"count":0,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/posts\/10069\/revisions"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/media\/10071"}],"wp:attachment":[{"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/media?parent=10069"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/categories?post=10069"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/tags?post=10069"},{"taxonomy":"line-of-business","embeddable":true,"href":"https:\/\/www.advantagego.com\/en-us\/wp-json\/wp\/v2\/line-of-business?post=10069"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}