Energy from WasteA Risk Management / Underwriting / Claims Handling Manual

50th IMIA Annual Conference 2nd to 6th September 2017

Munich

Simon Dejung, SCORAdam Casselman, SOMPO CANOPIUS

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What you should take away from this presentation

Get an idea of the globally planned EfW projects

Get a feeling for O&M implications

Get a feeling for PML & MFL scenarios

Understand bottlenecks / obstacles & USP’s for EfW technology

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AGENDA

EfW - Risk Management / Underwriting / Claims Handling Manual

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Working Group members & organization, p.4

EfW Context, p.5-13

T&C, p.23/24

Structure of this paper, p.14-16

Failure mode & Loss Examples, p.17-22

Conclusion, p.25

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1 - Working Group members & organisation

Aug 16: contact with EfW vendors & operators

Sept 16: 3 confcalls prior to IMIA Doha to define paper content

& appoint responsibles

Nov 16: 3 day EfW workshop with 3 plant visits

Jan 17: 50 pages submitted by the WG!!!

Feb 17: «boiled down» to 20 pages

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2 - EfW Context - Why EfW technology will grow

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2 - EfW Context - Plants in Europe, Asia, North America

WW approx. 2,200 EfW plants - capacity approx. 100m tpy

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2 - EfW Context - Drivers for capital costs

small <200 MWth centrally located tailor made complex (FGT)

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2 - EfW Context – CV & Efficiency compared to other power plants

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2 - EfW Context - Byproducts increase efficiency & profitability

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2 - EfW Context - LCOE comparison by fuel type – EfW is competive if ….

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2 - EfW Context - Growth potential in EMEA & APAC

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2 - EfW Context - Outlook +5% p.a.

Estimation: until 2024 new 550 EfW plants - capacity of 150 m tpy (Ecoprog, 2016).

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2 - EfW Context - Video playlist (process, erection, claims, waste concepts)

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3 - Structure of this paper (1/3)What How to useGive a risk management focused update on past publications

Provide links [9 links] to documents & new media where people get quicker an idea about certain topics

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3 - Structure of this paper (2/3)What How to useGive risk engineering & assessment recommendationse.g. recommended repairs

Explain typical claims [19 claims]of each process step along the process flowe.g. boiler dray cooking

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3 - Structure of this paper (3/3)What How to useRisk transfer element [15 failure modes] of each process step & mitigation measures along the process flow

Propose adequate policy wording [31 clauses cited] to manage a potential failure mode or mitigate risk, e.g. waste quality

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4 - Failure mode & Loss Examples - along the process flow (PD, DSU/BI)

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4 - Failure mode & Loss Examples - PD, DSU/BI implications

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4 - Failure mode & Loss Examples – Grate / Pump

8.Solid Expansion Joints

4. Grate Failure

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4 - Failure mode & Loss Examples - FGT / Ash Handling

14. Fouling

13. Wet Corrosion

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4 - Failure mode & Loss Examples – Turbines (10-12)

Gearbox

Overspeed

Vibration

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4 - Failure mode & Loss Examples - Split of BI amounts

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5 - T&C - Policy Wording Implications

Multiple Insured Parties

Construction to Operation

Design, Defects and Maintenance

Business Interruption / Delay in Start-Up

Fortuity

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5 - T&C - Specific Clauses

Waste Storage

Business Interruption / Delay in Start-Up

Inspection of Boilers / Scheduled Overhaul

Corrosion / Refractory

Waste Quality

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6 - Conclusion

500 EfW plants expected until 2024 in APAC & EMEA (+5% p.a.)

O&M key for BI exposure

Boiler & Turbine-Generator drive PD & ALOP/BI

TCV’s < $500m will favour local underwriting & cession

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Q & A ?