Real estate services provider Savills and insurance broker R K Harrison have launched a new feedstock supply chain insurance product to support developers and operators of bioenergy plants.
The product provides coverage against lost income arising from earlier uninsurable failures within the feedstock supply chain.
The new product is designed to provide bioenergy plant operators coverage for any shortage in turnover due to failure in the supply chain, which traditional products do not cover.
Features of the product include a comprehensive supply chain audit, as well as a full risk assessment and analysis of the long-term management strategy.
Risks arising from a supplier’s inability to provide sufficient feedstock, political risks or extreme weather events are not covered under this product.
Savills Energy director and operations head Miles Thomas said, "By managing the financial implications of supply chain disruption, we think this product will help with the development of new plants in the pipeline, as well as potentially opening the door to interesting refinancing options for existing operators."