Plastics-to-Fuel Plant Demonstrates Range of Manufacturers’ Insurance Requirements

18 /Jun

A £7m facility for the handling of non-recyclable plastics, and the conversion of these materials into hydrogen for fuel use, is being set up by Peel Environmental, part of Peel L&P, at a site at Ellesmere Port Cheshire. [1]

The facility will comprise four main buildings built on a 2.5-acre site, with these housing a waste reception, a gasification plant, storage and maintenance and amenities for workers.

From every 35 tonnes of plastic, it is estimated that this innovative energy plant could produce up to two tonnes of hydrogen per day, diverting a mountain of plastic waste away from landfill sites.

This project is a much larger version of similar but smaller enterprises also trying to reduce the environmental impacts of plastic waste, whilst using it for some benefit.  All need to ensure they have the right insurance covers, with these being determined according to the risks within the business.

Site visits and audits by an experienced insurance broker are usually the way in which determining manufacturing risks is handled, as such cover cannot typically be bought online or through a generic package.  A site visit allows the experienced broker to note the type of work being undertaken, but also the specific processes, production line operations, storage of raw materials and equipment in use.  It also affords them a view of the general ‘landscape’ in which production takes place, which is all useful background for the formulation of the best insurance strategies and risk containment measures.  A broker is able to not only highlight the mandatory insurance covers required but also specific insurance protection that could step in to compensate the manufacturing business when necessary.

Insurances typically required by such manufacturing enterprises vary from environmental liability to equipment breakdown.  Terrorism is a growing risk for plants concerned with energy production and the 21st century risk of cyber crime is ever-present, with this having the capacity to disable a plant very quickly.

Risks to employees also tend to be heightened at energy and manufacturing plants, where creating a strong health and safety programme is key and something with which an informed insurance broker can assist.  Such employee risks are frequently accompanied by litigation, making legal expenses protection imperative.  Alongside this, additional protection for management liability could be purchased, to safeguard the personal assets of individual directors or managers should a negligence case be brought against them.

Establishing a manufacturing or energy plant is not all about equipment purchase and recruitment.  It also requires the management to put insurance protection in place as the foundation of the business. If you need help creating such a foundation, please get in touch.

 

Source:

[1] https://www.placenorthwest.co.uk/news/peel-plastics-park-gains-momentum/

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