Pen Underwriting enters renewable energy market with launch of anaerobic digestion specialism
Published On : 14 Nov 2025
Pen Underwriting, the multi-class multi-territory managing general agent (MGA), has today launched into the renewable energy insurance sector with its new risk-management led insurance proposition tailored to the needs of the waste-to-energy anaerobic digestion (AD) industry.
Known as a circular fuel, AD is often referred to as one of the ‘cleanest’ forms of renewable energy as it converts organic waste to energy while creating other beneficial biproducts such as nutrient-rich fertiliser – thus helping manage waste sustainably while also creating a renewable energy source, reducing reliance on fossil fuels and contributing to net zero emissions goals.
Backed by A-rated capacity , Pen’s comprehensive suite of insurance covers has been designed to cover the full range of property and liability exposures faced by AD businesses, under one purpose-built policy wording, while also helping businesses proactively manage the unique challenges and risks associated with this fast-growing segment of the renewable energy market.
Whether managing a single site or nationwide operation, customers will benefit from 24/7 loss mitigation services through the provision of skilled emergency environmental response teams 365 days a year. These teams will provide immediate support in the event of an incident and help ensure operations resume as quickly as possible. Pre-quote surveys will also identify and address any potential hazards to enhance the operational resilience of sites and help avoid costly disruptions.
Pen’s new offering brings additional underwriting expertise and broker choice to what is currently a limited insurance market, despite the underlying growth of the AD sector and its potential to significantly expand as a key component of the UK’s renewable energy mix. According to the international collaboration programme IEA Bioenergy, the UK is already the third largest producer of biogas from AD , after Germany and China. There are already more than 750 AD plants operational in the UK and, fully deployed, the UK AD and biogas industry is expected to provide between 20% and 50% of UK gas demand by 2050 .
Pen’s comprehensive new product offering is designed to support a wide range of AD operations, including – but not limited to – wastewater treatment plants, animal and farming waste, food and drink production facilities, landfills, and recycling facilities.
Commenting on the launch of the new specialism, Adam Shefras, Managing Director of Hazardous Goods & Environmental Industries at Pen Underwriting, said: “Anaerobic digestion not only plays a vital dual role in sustainable waste management and clean energy production, but also has a crucial part to play in the UK’s strategy to achieve net zero emissions by 2050. Given its alignment to many of the industries and activities we already support, it was our natural entry point into the renewable energy sector.
“Over the past 25 years, the UK biogas industry has transformed itself through technological innovation, market evolution and regulatory change from a niche waste management solution to an industry of scale and bedrock of renewal energy infrastructure. And yet there are few insurance markets that specialise in understanding AD and its exposures, resulting in limited choice for brokers and their clients. We’re here to change that, while simultaneously helping AD businesses proactively manage their risks, support their growth and mitigate any losses.”
Sarah Breslin, Managing Director of Commercial – UK & Ireland, Pen Underwriting, added: “This is another great example of Pen’s ongoing investment into extending and diversifying our product offering for the benefit of brokers and their clients. By bringing underwriting expertise and greater market choice into important but underserved sectors like AD, we are also helping support UK industries with significant growth potential and facilitating the nation’s energy transition into cleaner, more renewable forms.”
Independent ratings from third party rating companies. Correct as at October 2025
https://www.ieabioenergy.com/blog/publications/state-of-the-biogas-industry-in-12-member-countries-of-iea-bioenergy-task-37/
About the AD industry: https://adbioresources.org/newsroom/biogas-industry-calls-for-recognition-of-biomethane-as-a-net-zero-fuel-within-uk-ets-in-open-letter-to-secretary-of-state-ed-miliband/
