Property Types

Hydrogen Facilities

Fuel cells are used as a fuel source in various industries, including transportation, building heat, long-term energy storage for the power grid, and other uses. One of the most common fuels used by fuel cells is hydrogen. The company may face environmental risks if a company generates, distributes hydrogen for fuel cells, operates a hydrogen fueling station, or manufactures fuel cells. Hydrogen is a flammable gas that can cause fires and explosions if improperly handled. Hydrogen may be distributed or transported as liquid hydrogen, a cryogenic gas. Releases of cryogenic gases can cause frostbite or burn those coming in contact with the gases. Releases of hydrogen in confined spaces can also result in asphyxiation.

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Environmental Exposures May Include

Stormwater
Toxic Run-off
Gas Leaks
Transit Hazards
Leaks
Waste Management
Storage Tanks

Stormwater

Stormwater could come in contact with chemicals, debris, fueling areas, wastes, and other outside storage at hydrogen generation or distribution facilities. Automotive fluids that leak from heavy-duty trucks loading and unloading at these facilities could also be collected in stormwater run-off. If stormwater is not properly controlled, contained, or pre-treated before discharge into sanitary or storm drain systems, it can pollute soil and groundwater or discharge directly into surface waters, impacting human health and aquatic systems.

Toxic Run-off

Hydrogen is a flammable gas that is colorless, odorless, and tasteless. Generators store significant amounts of hydrogen and other gases used in production. Hydrogen fueling stations and pipelines also store and distribute hydrogen. Hydrogen leaks can occur, and the presence of hydrogen at significant levels increases the possibility of a fire or explosion. Fires can produce smoke, and explosions can produce shock waves, which impact third parties. Toxic run-off from fires can come into contact with materials stored on-site or combustion by-products that can enter drains, migrate to adjacent sites, or discharge to surface waters. Environmental claims for bodily injury, property damage, cleanup, and natural resource damage could result from a fire or explosion.

Gas Leaks

Hydrogen gas leaks can also occur in confined spaces within a generator’s facility, during distribution, or at a fueling station. In a confined space, hydrogen can act as an asphyxiant and cause bodily harm to third parties.

Transit Hazards

Transportation of hydrogen as a cryogenic liquid or in high-pressure trailers can present pollution hazards. A leak from one of these trailers can cause injury to third parties, resulting in bodily injury and property damage claims. Fires from a hydrogen leak from a transport vehicle can produce smoke, and fire water run-off can contain pollutants that impact the environment.

Leaks

Leaks of hydrogen from a fuel facility or a vehicle or other equipment containing a fuel cell can result in injuries or property damage to third parties and claims for product pollution liability against the hydrogen generator, distributor, or fuel-cell manufacturer.

Waste Management

Wastes may be generated in hydrogen production processes. Hazardous wastes or other regulated wastes require special handling and disposal procedures, which, if not followed, may trigger regulatory violations and fines. Improper waste disposal could lead to environmental liability or legal consequences. Additionally, a waste generator can become a Potentially Responsible Party, liable for cleanup costs in the environmental cleanup of a non-owned disposal (NOD) facility where they sent wastes.

Storage Tanks

Aboveground storage tanks, underground storage tanks, or containers may be used to store fuels, chemicals, or wastes. Leaks or spills during storage, transfer, or loading and unloading can contaminate soil, groundwater, or surface water, migrate to neighboring properties, collect in stormwater run-off, or discharge to sewer or storm drains, resulting in environmental liability.

Environmental Pollution Liability Can Provide Coverage For

An Integrated GL/Site Pollution option may be available

Monoline Site Pollution Liability

Third-party claims for bodily injury and property damage

First-party and third-party cleanup

Defense of third-party claims

Emergency response costs

First and third-party transportation pollution liability

Loading and unloading

Products pollution liability

Crisis/reputation management

Civil fines and penalties, where allowed by state law

Off-site services pollution liability

Business interruption expenses

Non-owned disposal sites

Natural resource damage

Claims Scenarios & Examples

A hydrogen fuel plant experienced an explosion when a relief device failed, and an unknown source ignited hydrogen. The explosion damaged sixty homes near the plant, and the homeowners filed a lawsuit against the facility to recoup their repair costs.
Hydrogen was being unloaded at a hydrogen fuel facility into a tank. The unloading equipment was not properly grounded, resulting in a spark that ignited the hydrogen, causing a fire. The fuel tank on the hydrogen truck was compromised and released fuel. Firewater run-off from the fire carried fuel off-site, impacting a neighbor’s property. The trucking company and the fuel facility were sued for cleanup.
A hydrogen production complex experienced an explosion when a 10-inch nitrogen line ruptured. Several nearby residents were injured, resulting in bodily injury claims against the facility. The facility also had a fire that resulted from the explosion, and run-off from the fire was contaminated with chemicals, which migrated onto a neighbor’s property and impacted soils. The hydrogen production complex paid the cleanup costs.
During a swap of hydrogen tanks by a company that supplies tanks for a fuel-cell fleet, one of the tanks exploded, causing a fire and leading to a second tank also exploding. Several third parties close to the area where the explosion occurred were injured.

Final Consideration

Your business can be faced with the cost to defend itself against allegations or legal action from pollution related events, regardless if you are fault or not. Having the proper insurance coverage in place will help fund the expenses incurred to investigate or defend against a claim or suit and provide you with environmental claims handling expertise.

This environmental risk overview offers a general understanding of potential risks and may not reflect all risks associated with your business. Environmental Risk Professionals has compiled this overview for informational purposes only. This overview does not constitute legal opinion or advice, nor does it establish a consultant-client relationship. This overview is not intended to guide project parties in interpreting specific contracts or resolving disputes; such decisions may require consultation with counsel and depend on various factors. © 2025 Environmental Risk Professionals, LLC

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