News

UPDATED SNOWY 2.0 BUSINESS CASE REVISES NPV UPWARD TO $3BN

24/05/2024

Snowy Hydro is pleased to release the updated Snowy 2.0 business case presenting the project’s key revenue streams and value to the National Electricity Market (NEM).

Marsden Jacob Associates (MJA), a long-standing expert in modelling the NEM, was re-engaged in mid-2023 by Snowy Hydro to provide updated NEM modelling as input to the updated business case.

While the economic drivers at the time of the project’s Final Investment Decision (FID) in December 2018 have not changed, there are a number of updates and these include:

Revised total cost to complete of $12 billion and a delay to the commercial operation date to December 2028.
Delivery of an additional 200 megawatts or 10% capacity; bringing total capacity to 2,200 MW.
Increased Snowy 2.0 generation, reflecting the greater penetration of variable renewable generation (wind and solar).

The value of Snowy 2.0 to the NEM has increased since FID in December 2018, to $3.0 billion from $2.8 billion. Its completion is critical to supporting the NEM’s decarbonisation and reliability targets.

Snowy Hydro has already contracted 1.75 gigawatts (GW) of wind and solar supply which enabled 2.9GW of wind and solar projects. Snowy 2.0 will enable at least another 6GW of renewable energy through its ability to “firm” the intermittent wind and solar energy and transform this energy into cost-effective, reliable electricity supply.

The 350 gigawatt hours (GWh) of energy storage provided by Snowy 2.0 through its pump/generate function provides a meaningful step towards the 640GWh of storage identified by AEMO in its 2022 Integrated System Plan as being crucial to absorbing surplus renewable production and maintaining supply during periods of low renewable output.

Located in the NSW Snowy Mountains, Snowy 2.0 is 57% complete, with a workforce of 3,000 achieving good progress across the construction worksites.

At Lobs Hole, tunnel boring machine (TBM) Lady Eileen Hudson has excavated approximately 2km of the 6km tailrace tunnel, and world-leading TBM Kirsten is about to embark on the Inclined Pressure Shaft (IPS) excavation on a steep uphill drive of 1.6km. Stage 2 drill and blast excavation of the power station caverns continues.

When completed, the machine and transformer halls will form one of the largest and deepest caverns in the world, 800 metres underground.

More than 570,000 cubic metres of material has been excavated at the Talbingo intake – where water will exit the tailrace tunnel into Talbingo Reservoir and enter the tunnel when in pumping mode.

At Tantangara, the intake is three metres away from its fully excavated depth of 55 metres and the tunnel linking the intake and gate shaft is underway. TBM Florence is more than 850 metres into the headrace adit.

With progress slowing in very hard rock, the Snowy 2.0 project team ceased excavation by TBM Florence due to rock pinching on the machine’s shield. A specialist contractor has commenced work using high pressure water jets to remove the rock impinging on the machine’s shield.

The 28-metre wide headrace surge shaft at Marica is excavated to a depth of 85 metres, on its way to 250 metres.

The precast factory at Polo Flat, Cooma, is manufacturing concrete tunnel lining segments installed by the TBMs. More than 104,000 have been produced, along with 450 of the 7,000, nine-tonne bespoke segments for the IPS that utilise innovative force activated couplers.

The Snowy 2.0 updated business case was assessed following the revision to the project’s schedule and costs announced in August 2023.

The updated Snowy 2.0 business case is available here.

News

TBM FLORENCE UPDATE – 21 May

21/05/2024

With progress by tunnel boring machine (TBM) Florence in the headrace tunnel slowing in very hard and abrasive rock on Wednesday 15 May, the project ceased excavation by the TBM on Thursday 16 May due to rock pinching on the machine’s shield. This update on TBM operations was provided within 24 hours of the machine being stopped.

The Snowy 2.0 project team sought immediate advice from a specialist contractor with experience at other Australian projects with the same TBM situation. Today the contractor commenced work using high pressure water jets to remove the rock impinging on TBM Florence’s shield.

Timing for estimated recommencement of excavation will be determined on the successful removal of the rock.

The next TBM Florence update will be provided in the week commencing Monday 27 May.

News

TBM FLORENCE UPDATE

16/05/2024

Tunnel boring machine Florence has been ramping up excavating the Snowy 2.0 headrace tunnel, recently reaching 12 metres per day for a period.

With progress slowing in very hard rock on Wednesday 15 May, today (16 May) the Snowy 2.0 project team ceased excavation by the TBM due to rock pinching on the machine’s shield.

We are currently investigating the best way to relieve this pressure prior to recommencing excavation.

News

SNOWY 2.0 PROJECT UPDATE – APRIL 2024

01/05/2024

Snowy 2.0 is a major pumped-hydro expansion of the Snowy Scheme and at Marica, high in the Snowy Mountains, a very wide and deep surge shaft connecting to the Snowy 2.0 headrace tunnel is being built.

The surge shaft has two key purposes for the operation of a hydro power station: as a water storage and vacuum relief when the power station starts up, and to absorb the momentum of water movement within the headrace when the power station is shut down.

The Marica surge shaft is about 28 metres in diameter and is currently over 80 metres deep.

During its construction the walls of the shaft are supported temporarily by rock bolts and shotcrete and once it is excavated to its full depth of 250 metres, a permanent concrete lining will be installed from the bottom up.

We are excavating the shaft with a number of excavation methods, including using 36-tonne excavators that place loads of material into kibbles. This material is lifted out and dropped into a dump truck.

An integrated work platform and personnel hoist is in the final stages of commissioning to provide worker access now the shaft is becoming very deep.

In the latest project update, civil engineer and Snowy 2.0 project manager, Richard Clarke, details the significant work undertaken constructing Marica Trail to create a new permanent access road into the surge shaft site.

Marica Trail provides safe, all weather access for traffic, including heavy vehicles.

Building in steep terrain was challenging and required specialised rope access workers to install ground support for safety and stability.

The road has been very carefully constructed in a tight envelope. It’s 6.5 km long, with an elevation change of about 320 metres from top to bottom and multiple water crossings have been created, including over the Eucumbene River.

Over at Tantangara, drill and blast excavation to join the intake and gate shaft is underway from both structures. The transition from the intake changes shape as it is excavated to become the connection tunnel to the gate shaft.

At the same time, we have started drilling and blasting from the gate shaft to merge into the headrace tunnel alignment excavated by TBM Florence.

When completed, water will enter the headrace tunnel from the intake, on its way to the power station.

Snowy 2.0 is being engineered to deliver clean and reliable energy storage and generation for the next 150 years. The target date for commercial operation of all units is December 2028, with first power expected in the second half of 2027.

Update – Thursday 2 May

Reports today that tunnel boring machine (TBM) Florence has stopped tunnelling are incorrect.

TBM Florence remains fully operational and is now more than 800 metres into excavation of the Snowy 2.0 headrace tunnel at Tantangara. The TBM has operated successfully since its restart on 8 December 2023 and has moved through identified soft ground into hard rock.

The total distance tunnelled by all three Snowy 2.0 TBMs across the pumped-hydro renewable energy project is approximately nine kilometres.

As provided in evidence at two recent Senate Estimates hearings, Snowy Hydro has been investigating options to de-risk the headrace tunnel construction by excavating from the other end. This work remains ongoing.

News

RESPONSE TO NPA REVIEW OF SNOWY 2.0 ENVIRONMENTAL PERFORMANCE

12/04/2024

Snowy Hydro acknowledges and thanks the National Parks Association of NSW’s ongoing attention to matters relevant to Kosciuszko National Park, including the construction of Snowy 2.0.

As a longtime operator of the Snowy Scheme within Kosciuszko National Park, we recognise the park is a sensitive environment with high conservation values that require protection. We continue to seek ways to make positive contributions to Kosciuszko National Park through actions such as road improvements and a $100 million investment to improve the biodiversity and recreational values of the park.

Snowy Hydro takes its environmental management obligations very seriously and we are absolutely committed to ensuring that the construction and operation of Snowy 2.0 is carried out in a manner that is compliant with all applicable laws and project approvals.

The NPA refers to Snowy 2.0 environmental management plans, the project’s Independent Environmental Audits (IEAs), and state government compliance actions.

There are six management plans yet to be approved and these relate to the management of environmental impacts during the Snowy 2.0 commissioning and operations phase only, which is a couple of years away, not current construction activities. Despite this, progress of each of these plans is well advanced and are either awaiting input from relevant stakeholder organisations or are being revised following formal feedback. Snowy Hydro is actively engaging with the Department of Planning, Housing and Infrastructure (DPHI) on the progress of each plan.

Snowy Hydro undertakes more IEAs than are required under the project approvals due to the sensitive nature of the environment and the scope of the Snowy 2.0 project. Of the 12 non-compliances identified from 372 elements assessed under the most recent IEA, none caused any actual harm and all are being rectified as a matter of priority.

The Snowy 2.0 project has been the subject of several compliance actions by EPA and DPHI over the last two years and in each case, important lessons have been learned that have informed improvements to policies, procedures and site practices. Snowy Hydro continues to take these matters very seriously and implement steps to ensure that identified incidents do not happen again.

Snowy 2.0, a pumped-hydro expansion of the Snowy Scheme, will provide 2,200 megawatts of on-demand, dispatchable energy and almost a week of renewable energy storage to help maintain grid security and reliability while enabling Australia’s decarbonisation.

News

HAVE YOUR SAY: SNOWY HYDRO LAUNCHES COMMUNITY INSIGHTS CAMPAIGN

05/04/2024

Snowy Hydro is launching a community insights campaign to better understand the social impacts of the Snowy 2.0 project.

The campaign seeks to engage and connect with community members across south-eastern NSW to gather insights, opinions, and experiences related to Snowy Hydro operations and the Snowy 2.0 project.

Through an online survey available at www.snowyhydro.com.au/haveyoursay, we invite residents, stakeholders, and interested parties to share their perspectives and help shape the future of their communities. A series of focus groups, one-on-one meetings, phone surveys and community pop-up stalls will support the online survey.

“This campaign reiterates Snowy Hydro’s commitment to transparent and inclusive community engagement,” said Snowy Hydro CEO Dennis Barnes.

“We value the input of our community members and recognise the importance of understanding their needs and concerns.”

The survey, which will be open until 5 May 2024, covers a range of topics, including community sentiment, perceptions of the Snowy 2.0 project, and suggestions for improving Snowy Hydro’s community engagement efforts. Participation is open to individuals aged 18 and above who reside or own property in the Snowy Monaro, Snowy Valleys, Towong, Bega Valley and surrounding local government areas.

“We encourage you to take part in this survey and contribute to the dialogue surrounding the Snowy 2.0 project and its impact on our communities,” added Mr Barnes.

“Your feedback will be important in informing Snowy Hydro’s social impact strategy and community engagement initiatives.”

Throughout April, Snowy Hydro representatives will engage with stakeholders in key regional towns, fostering open conversations about Snowy Hydro’s operations and future priorities. The consolidation of survey findings is planned for June 2024, with a publication of key results expected in July 2024.

For more information or to participate in the survey, please visit www.snowyhydro.com.au/haveyoursay.

Additionally, feedback or inquiries can be directed to Snowy Hydro via phone at 1800 623 776 or email at community@snowyhydro.com.au

News

SNOWY 2.0 PROJECT UPDATE – MARCH 2024

03/04/2024

This month we’ll update you on tunnel boring machine (TBM) Kirsten, which is putting Snowy 2.0 at the forefront of TBM tunnelling innovation, along with the unique concrete segments she will install as part of the inclined pressure shaft excavation and lining.

Damon Miller, Senior Engineering & Quality Manager for Snowy 2.0, works with the design, manufacturing and construction teams to plan and deliver the engineering solutions behind Snowy 2.0, the pumped hydro expansion of the Snowy Scheme.

Building the inclined pressure shaft (IPS) will be a unique and technically challenging engineering feat for the project team

After finishing the 2.9 kilometre Emergency Cable and Ventilation Tunnel, TBM Kirsten has been substantially modified for her next critical role excavating the IPS.

This very steep, 1.6 kilometre, 10 metre diameter shaft forms part of the waterway and will connect the headrace tunnel with the underground power station.

Project director Dave Evans believes the specially manufactured segments being used for this shaft are going to change the world of hydropower. “It means we can do less steel lining, we can move power stations closer to the surface which is what we’ve done here and construct an inclined pressure shaft with a tunnel boring machine which all makes it safer, quicker and the quality a lot better.”

To see the latest Snowy 2.0 project statistics, view the fact sheet here.

To cope with the extreme and fluctuating water pressures in the IPS, the concrete segment rings lining the tunnel require bespoke connectors.

The Force Activated Coupling System or FACS are specially-developed steel couplers with pin and socket elements.

When the segment rings are interlocked, the pre-stressed FACS keep the joint closed when the tunnel experiences sharp changes in pressure from turbine operations and shut downs. It’s like water hammer when opening or closing a tap at home, just on a much larger scale.

This new technology has been developed by Future Generation joint venture partner Webuild and their designer Lombardi, with the FACS segments being manufactured at our precast factory in Cooma.

A large-scale test is being conducted by installing eight FACS rings to link the emergency, cable and ventilation tunnel with the IPS.

Meanwhile, innovative design by the leading TBM manufacturer Herrenknecht has allowed TBM Kirsten to be modified to safely tunnel uphill.

The machine’s working platforms, equipment and operator’s cabins all pivot to remain horizontal and the walkways become steps and ladderways.

A screw conveyor will move excavated rock from the cutterhead. This feeds into a sandwich conveyor that has face-to-face rubber belts to hold the material so it can be transported down the steep slope without spillage.

The IPS is on a 47% incline so a monorail is being installed to transport workers and there is a rack and pinion system for multi-service vehicle access including segment delivery up the steep slope to the TBM.

News

JOIN US FOR SNOWY 2.0 COMMUNITY INFORMATION SESSIONS

08/03/2024

If you’re interested in the latest updates from the Snowy 2.0 project, come along to information sessions being held throughout the Snowy Mountains this month.

The Snowy 2.0 delivery team, led by Snowy Hydro, is hosting events in Talbingo, Tumut, Tumbarumba, Adaminaby and Cooma, with opportunities to find out more about the project, ask questions and provide your feedback.

These in-person events will cover a range of topics including:

project news and construction activities
engineering innovations and manufacturing
traffic management, environment and safety
accommodation, recreation access and other local issues;
local suppliers, jobs and training on Snowy 2.0.

Snowy Hydro CEO Dennis Barnes said it was essential local people were updated about progress on Snowy 2.0 and that they understood the significance of the project.

“What’s being constructed right here in the mountains is a critically important renewable energy project that will help maintain Australia’s grid security and reliability well into the future,” Dennis said.

“It is a large and complex project that’s also generating jobs and significant investment in regional areas.

“We’re committed to keeping our local communities informed about Snowy 2.0 and responding to any concerns. We are available to answer questions at our information sessions so I encourage people to come along to hear from the project team directly.”

The Snowy 2.0 community information sessions are held twice yearly. Some are drop-in sessions, with the chance to speak one-on-one with project team members from Snowy Hydro and principal contractor Future Generation Joint Venture. Other events feature a formal presentation followed by community Q&As.

Community information sessions schedule:

Date	Town and location	Time
Thursday 14 March 2024 Thursday 14 March 2024	Talbingo shops Tumut River Brewing Co	12pm – 2pm 6pm – 7.30pm
Friday 15 March 2024	Near Tumbarumba IGA, The Parade	12pm – 2pm
Wednesday 20 March 2024	Adaminaby Bowling Club	6pm – 7.30pm
Thursday 21 March 2024	Cooma Car Club	6pm – 7.30pm

News

100,000 SNOWY 2.0 TUNNEL SEGMENTS LOCALLY MANUFACTURED

29/02/2024

The Snowy 2.0 Cooma precast manufacturing facility has hit another significant milestone and completed production of 100,000 of the 130,000 concrete segments needed to line 27 kilometres of tunnels for the pumped-hydro megaproject.

More than 230,000m3 (or more than 550,000 tonnes) of concrete has been used to manufacture these seven-tonne precast segments, installed by the three tunnel boring machines (TBMs) used on the Snowy project.

Snowy Hydro CEO Dennis Barnes said it was pleasing for the project to be manufacturing and investing locally, while also providing employment opportunities.

“About 200 people from the 3,000-strong Snowy 2.0 workforce work at the precast factory operated by our project contractor Future Generation Joint Venture,” Dennis said. “The facility supports local employment and also on-the-job training for a number of school-based apprentices from Monaro High.”

The precast facility includes a concrete batching plant and onsite laboratory to check the quality of every segment produced. Many of the raw materials like aggregates are sourced from local quarries at Mt Mary and Nimmitabel.

Careful consideration and design of the concrete mix, which includes waste material, has meant significant reduction in the environmental production footprint while improving the segments’ durability and performance.

Carousels utilising robotics to automate the process of demoulding, cleaning and application of the release agent on the segment moulds have been used in the manufacturing process.

One of the two carousels has now been modified to produce the precast segments for the Snowy 2.0 inclined pressure shaft (IPS). This very steep 1.65km shaft will be excavated by TBM Kirsten and will link the underground power station with the headrace tunnel coming from Tantangara.

The IPS segments involve a world-first force-activated coupling system (FACS) designed to withstand the powerful internal forces of water moving through the 10-metre diameter inclined tunnel.

Installing segments with FACS eliminates the need for a second tunnel lining, thereby improving the quality, safety and the rate of tunnel completion.

The Snowy 2.0 precast factory will produce approximately 9,000 IPS segments, with nine used in each tunnel-lining ring. The first ring prototype has been completed, with mass production expected to start next month.

FAST FACTS

Number produced = 100,000

Concrete used = About 550,000 tonnes or 230,000 cubic metres

Segment weight = 7 tonnes

Installation method = tunnel boring machine

Equivalent rings (nine segments per ring) = 11,111

Tunnel lining length = 22.2 kilometres

News

SNOWY 2.0 PROJECT UPDATE – FEBRUARY 2024

28/02/2024

The new Snowy 2.0 power station will boast the latest in hydro technology, delivered by our expert subcontractor Voith Hydro. In the latest project update, Snowy 2.0 mechanical engineer Mahali Heffner details how quality assurance activities and factory acceptance testing is carried out on each power station component.

Every one of the hundreds of pump-turbine-generator components undergoes rigorous testing before it leaves the Voith factory. This is to ensure they meet high quality standards and will operate reliably when the power station is switched on.

A team of Snowy Hydro and independent assessors recently conducted mechanical and hydraulic dimensional checks on the first Snowy 2.0 runner at the Voith factory in Shanghai, China.

The runner is the heart of a hydro turbine – it’s the rotating element that drives the generator to produce power.

Acceptance testing includes checking the profile of the blades and surface examinations.

Dye penetrant testing is used to identify imperfections on the surface of the 31 tonne, 4.2 metres-wide runner. We spray on a red dye, clean it and apply the developer. If imperfections are present, the dye will make them visual.

Snowy Hydro and contractor Future Generation Joint Venture (FGJV) work with Voith and other subcontractors on a range of quality assurance activities as part of the multi-stage manufacturing process.

At Lobs Hole in the Snowy Mountains, power station components including turbine guard valves, spiral cases and draft tube liners are being progressively delivered to site.

Meanwhile, deep underground, excavation of the machine hall and transformer hall cavern crowns have been completed and we’ve almost finished the final side slashing to widen the structures. Drill and blast works are also continuing in the cross passages and tunnels that are an important part of the power station complex.

At the other end of the project at Tantangara, the intake is really starting to take shape. We are well into stage two of the excavation, now approximately 49 metres below ground level and approximately six metres to go.

We map the cut face to determine what rock support is required and then after the design is confirmed, rock bolts and shotcrete are installed. It’s exciting to see the shape of the transition from intake to tunnel, with the canopy tube rock support in the intake face forming an arch above the tunnel entrance.

Drill and blast of the tunnel excavation is scheduled to start soon and the first milestone target will be to link up the intake with the gate shaft.

News

SNOWY 2.0 PROJECT UPDATE – JANUARY 2024

31/01/2024

Deep underground at Lobs Hole in the Snowy Mountains is the heart of Snowy 2.0, the pumped-hydro expansion of the mighty Snowy Scheme. It’s where we’re building a huge power station complex that will house equipment capable of generating 2,200 megawatts of renewable energy.

In this month’s update we’re celebrating a major power station construction milestone – the breakthrough blast of the machine hall cavern crown.

With excavation of the crown – or ceiling – of the cavern taking place from both ends, the final three metres of rock are drilled and charged with explosives according to a precise blast plan.

The tunnels are cleared and the shotfirer arms the electronic blasting system which uses a unique electrical pulse to initiate firing of the explosives.

According to Snowy 2.0 project director Dave Evans, the machine hall achievement signals further progress after the recent transformer hall cavern crown breakthrough and restart of tunnel boring machine Florence in the headrace tunnel at Tantangara.

“These milestones are only possible with the whole team working together as one, whether they are subcontractors like Orica, the company managing underground blasting operations, or the lead contractor Future Generation and Snowy working so closely together.”

To see the latest Snowy 2.0 project’s statistics, view the fact sheet here.

As the underground drill and blast works continue, the manufacturing of major hydropower components for Snowy 2.0 is also well underway.

Snowy Hydro senior quality engineer Victor Teo is based for part of the year in Shanghai, where Voith Hydro – the company producing major power station equipment for Snowy 2.0 – has a large facility.

He also travels to nearby cities including Zhuji and in his quality and compliance role, participates in factory acceptance tests and hold point inspections for components being fabricated by subcontractor Shenke such as the draft tube liners and cones, and the huge stator frames.

The draft tube liners funnel water into and out of the power station turbines and are comprised of six segments. They are 4.6 metres high, 30 metres long and weigh 40 tonnes when assembled.

The six stator frames that house the generator are fabricated in two halves and are welded together for a total weight of more than 400 tonnes.

Snowy Hydro has an integral part to play in establishing high standards of equipment manufacturing, which meet the engineering requirements for our critical Snowy 2.0 project infrastructure.

News

BREAKTHROUGH MILESTONE FOR SNOWY 2.0

05/01/2024

Snowy Hydro is pleased to announce another major achievement for the Snowy 2.0 pumped-hydro project, with the breakthrough of the final three metres of the power station’s 223-metre long transformer hall cavern crown.

The Snowy 2.0 delivery team began excavating the transformer hall and machine hall caverns in June 2023. The Snowy 2.0 power station will be located approximately 800m underground at Lobs Hole in the Snowy Mountains. When completed, the machine hall will be 251 metres long and 52 metres high and the transformer hall 223 metres long and 46 metres high. Together they will form one of the largest and deepest caverns in the world, big enough to fit the Sydney Opera House inside.

Precise drill and blast methods are used to profile the curved cavern crowns (or ceilings) and break up the rock, which is mucked out and followed by surface scaling to remove any remaining loose rock. The exposed solid rock face is then supported with rock bolts and shotcrete. The excavation sequence of the cavern crowns is carefully planned and executed, as the rock mass relaxes and moves inwards as the excavated void increases. These movements are expected and are closely monitored during the process.

So far, about 17,000 cubic metres of material has been excavated from the central heading of the transformer hall cavern crown. The heading has been advanced in 3-4 metre rounds from either end of the cavern for a total of 77 blasts.

The machine hall cavern crown breakthrough will take place in coming weeks, and widening of both cavern crowns, known as side slashing, is ongoing and planned for completion in coming months. Excavation of both power station caverns is set to continue through 2024.

The breakthrough of the transformer hall cavern crown represents another important milestone for the Snowy 2.0 pumped-hydro project that will significantly expand the existing Snowy Scheme and will provide an added 2,200 megawatts of on-demand power and 160 hours of large-scale renewable energy storage for the National Electricity Market.

Snowy Hydro CEO Dennis Barnes said: “The breakthrough of the transformer hall cavern crown is a really pleasing milestone for the Snowy 2.0 team, reinforcing that we’re making good progress with our underground drill and blast excavation activities. We are well on our way to delivering the largest single project that will help ensure Australia’s secure and reliable transition to renewable energy.”