Origin Surety launches decommissioning bond program

Origin Surety has introduced a decommissioning bond program in partnership with Propeller.

The program lets clients meet decommissioning security requirements using surety bonds instead of letters of credit or cash deposits. It simplifies access to surety by requiring only the project asset as indemnity, with no cash collateral needed.

“We understand the needs of our renewable energy clients. By limiting indemnification exposure to the project level only, and eliminating cash collateral requirements, we are providing a unique and flexible solution to our clients that seek ease of bond issuance and capital efficiency.  By using surety bonds, our clients are able to invest their capital more efficiently by freeing up debt facilities or cash deposits used to secure these obligations or used as collateral.” – Joseph Tinana, VP of Origin Surety.

“By focusing on project level indemnification and the elimination of cash collateral, we are aiming to increase utilization and flexibility to ultimately broaden the use case for surety bonds across the industry.” – TJ Valet, SVP of Origin Surety.