Energy’s change in direction heightens risk of underinsurance

By Phoebe Winter, March 23rd 2023

From taking steps to move away from fossil fuels or just trying to keep up with energy demands hindered by the war, the energy market is changing. The need for change has never been more crucial and companies are working faster than ever to adapt.

Looking to the future

Centrica recently announced both the reopening of the Rough gas storage facility and the transformation of a former coal fire power station at Roosecote into one of Europe’s largest battery storages facilities.

Having completed significant upgrades to Rough, providing a gas storage safety cushion over the winter. The long-term aim of the facility is to be capable of storing both natural gas and hydrogen. A step towards greener energy. Similarly with the new battery storage facility at Roosecote.

Czech energy group EPH are also investing in a battery storage project at the site of former Eggborough coal station in the UK. With more than one billion pounds invested into the site, EPH are expected to construct one of the most modern power plants in Europe.

Short term measures

However, fossil fuels are still necessary, resulting in many older fossil fuel plants reopening. The UK government announced it will open the first new coal mine in 30 years and the last remaining coal power plant is to be kept open for another two years. With Germany and France also reopening plants and Poland increasing production. Energan has also just launched Israel’s first crude oil exports.

Whatever the approach taken, with change happening faster than ever, it’s never been more important to ensure that any facilities reopened or redeveloped are insured for the correct sums.

Address underinsurance now

The valuation of oil, gas and power assets is a highly technical and complex skill. Here at Rushton International we have an established and experienced team who have worked with some of the biggest names in the sector.

Our expert knowledge gives clients visibility on their entire business assets, no matter the global location or currency. We have valued a variety of fields in the energy market. Including mines across the Americas, South Africa and Australia, Oil refinery sites in the Middle East and offshore wind farms in the UK, to name just a few.

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About Rushton International

Rushton International is an independent and impartial asset valuation and advisory firm. We specialise in the valuation of plant, equipment and buildings for insurance purposes. With our team of qualified and accredited valuers, we have the experience, qualifications and expertise to value any asset, anywhere in the world.

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