News

SECURING THE FUTURE OF CRITICAL ENERGY TRANSFORMATION PROJECTS

31/08/2023

Snowy Hydro today announced the outcomes of its major projects resets, for Snowy 2.0 and the Hunter Power Project.

Snowy 2.0

Revised total cost to complete is $12 billion. At the end of June 2023, expenditure on the project was $4.3 billion, with 80% of these funds reinvested in the Australian economy.
First power to be delivered in the second half of 2027 and a target date for commercial operation of all units of December 2028.
The fixed-price EPC Contract was executed by Snowy Hydro and Future Generation Joint Venture (FGJV) following Final Investment Decision in a relatively benign and supportive environment. The EPC Contract is no longer fit for purpose.
Snowy Hydro and FGJV are finalising an amendment to the existing EPC Contract to move to an incentivised target cost contract model. Snowy Hydro will also settle all outstanding claims with FGJV.
Delivery of an additional 200 MW or 10% capacity; bringing total capacity to 2,200 MW.
Snowy 2.0 is the largest renewable energy project under construction in Australia and will provide crucial deep storage central to Australia’s renewable transition.
The value of Snowy 2.0 to the national electricity market has increased materially since the Final Investment Decision in December 2018.
Snowy 2.0 will provide 350,000 MWh of energy storage for 150 years.
Snowy 2.0 remains value accretive, with the Company currently projecting a NPV of approximately $3 billion (based on a $12 billion revised target total cost and December 2028 delivery).
Snowy Hydro is working closely with its Shareholder to develop an appropriate capital structure for the Company to support the increase in costs and to maintain the Company’s target credit rating of BBB+.

HPP

The total target cost is now $950 million and will be funded by Snowy Hydro.
The project delivery remains December 2024.
The project remains economically viable on a forward looking basis with the value of its firming capacity clearly demonstrated in the May/June 2022 energy crisis.

Snowy Hydro CEO Dennis Barnes said the project resets will enable the commercially sustainable and successful delivery of both projects.

“I am committed to ensuring these critically important projects are transparent and are placed on a robust and sustainable footing. Moving to an incentivised target model with FGJV will result in closer collaboration, stronger oversight and alignment of interests between Snowy Hydro and FGJV. ” Mr Barnes said.

“Snowy 2.0 is being engineered to deliver clean and reliable storage and electricity generation for Australians for the next 150 years. It is a truly transformative national project that is generating jobs and significant investment in regional areas; it will deliver benefits immediately following its completion and will continue to do so for many future generations of Australians.

“Snowy 2.0 involves billions of dollars of investment, with approximately 80% going into Australian jobs, goods, services and skills. We are building the skills of local workers that can later be used elsewhere to assist in Australia’s ongoing energy transition.”

“The Hunter Power Project is an important project in Australia’s energy transition, enabling the roll-out of wind and solar projects by firming these intermittent generation sources into reliable power,” Mr Barnes concluded.

Fact sheet

Webuild Clough media statement

Background Information

Snowy Hydro today detailed the outcome of the review and reset process for key electricity projects, Snowy 2.0 and the Hunter Power Project.

Snowy 2.0

The estimated total cost for Snowy 2.0 project delivery has been revised to $12 billion, with expenditure on the project to date of $4.3 billion. The terms of the contract with Future Generation Joint Venture (FGJV) are being finalised to move to an Incentivised Target Cost contract model, which will result in closer collaboration, stronger oversight and alignment of interests between Snowy Hydro and FGJV. Snowy will also settle all outstanding claims with FGJV.

The target date for commercial operation of all units is December 2028 with first power to be delivered in the second half of 2027.

Through the project reset process Snowy Hydro has worked with FGJV and hydro technology contractor Voith Hydro to increase the capacity of the power station by 10%. Snowy 2.0 will now deliver dispatchable generation capacity of 2,200 MW, as well as providing energy storage of 350,000 MWh (or 160 hours of generation at maximum output).

The cost revision reflects the compound effect of extraordinary factors. The external factors have impacted major projects around Australia and globally, in particular:

The major disruption caused by the Covid-19 pandemic;
Delayed ability to mobilise, given critical shortages of skilled labour, exacerbated by quarantine and movement restrictions;
Extended and ongoing disruption to global shipping and supply chains caused by the pandemic, conflict and natural disasters, delaying access to key materials;
Significant inflation in costs of key construction materials and inputs; and
Significant inflation in labour costs.

In addition to the external factors, the project has been impacted by:

Design immaturity at final investment decision, with a number of design elements requiring more time to complete due to their technically complex nature. The final design now being more expensive to construct; and
The impact of variable site and geological conditions, with the most impactful being the soft ground encountered that is delaying tunnel boring machine (TBM) Florence’s progress at Tantangara.

Despite the challenges outlined above, the project remains economic. Strong and growing market demand for dispatchable electricity is expected to underpin demand for the services provided by the project well into the future.

Construction of Snowy 2.0 is now approximately 40% complete and solid progress continues to be made, including:

Excavation of the main access and emergency cable and ventilation tunnels is now complete – approximately 6km of tunnelling;
Excavation on the 6km tailrace tunnel has commenced and tunnelling on the 1.45km inclined pressure shaft will commence shortly;
Work on the underground power station is now underway with access available from both ends and excavation and support of cavern crowns underway;
Excavation at the Talbingo intake (where water will enter during pumping and exit during generation) is halfway complete, with 310,000m³ of earth excavated, while the first stage of earthworks at the Tantangara intake are complete, involving the movement of 205,000m³ of earth; and
Manufacturing of the six pump turbines has commenced, the first major mechanical component has been shipped and has been transported to site.

Meanwhile, excavation of the headrace tunnel by TBM Florence is now ready to be continued, subject to the receipt of necessary regulatory approvals.

The project currently has a team of approximately 2,700 Australians dedicated to its safe and efficient delivery. An additional 1,500 jobs are forecast over the project’s lifespan.

Hunter Power Project

The Hunter Power Project has experienced similar challenges to Snowy 2.0 and following a comprehensive review the expected cost is now $950 million. Despite the increased cost the Hunter Power Project remains economic.

Construction continues to progress on schedule, with about 460 people working on the project, which remains on track to be delivered by December 2024.

News

SNOWY 2.0 PROJECT UPDATE – JULY 2023

28/07/2023

July marked an exciting milestone for Snowy Hydro, the Snowy 2.0 project and for one of its three tunnel boring machines. Tunnel boring machine (TBM) Lady Eileen Hudson was the first machine to start tunnelling on the pumped-hydro mega project, the first to complete a tunnel and is now underway on her second tunnel excavation.

Snowy 2.0 senior project manager, Rodd Brinkman, is onsite at the Talbingo adit, where teams have been preparing to relaunch TBM Lady Eileen into the mountain.

The TBM will excavate the 6km tailrace tunnel to connect Talbingo Reservoir to the underground power station complex. Water used to generate 2,000 megawatts of power from Snowy 2.0 will flow out of the tailrace tunnel. Water also enters this tunnel when the power station is pumping.

After completing the 2.8km main access tunnel (MAT) in 2022, it has been a big task to disassemble and safely extract TBM Lady Eileen and reassemble her with new components before commissioning. The conveyor stacker, grout batch plant, and chiller plant were also relocated from the MAT portal to the Talbingo adit.

Before a TBM begins her journey underground, it is traditional for the machine and crew to be blessed for a safe journey under the watch of St Barbara, the patron saint of tunnelling and underground work. The tradition of blessing is acknowledged at tunnelling sites all over the world.

Local parish priest Father Mark Croker blessed the TBM at an onsite ceremony with many Snowy 2.0 workers in attendance. The machine was then switched on and began cutting the rock face. This is the fourth TBM launch for Snowy 2.0 and a major achievement for the Snowy Scheme expansion project.

TBM Construction Manager Derek Whelan manages all Snowy 2.0 tunnelling activities, as well as the TBM construction personnel. He was on-hand to run through Lady Eileen’s impressive components, including a new 378-tonne cutterhead.

The cutterhead is made up of 70 cutting discs each weighing 290 kilos that will excavate the varying geology of the 11-metre diameter tunnel. At 137 metres in length and weighing 2,300 tonnes, the TBM is a moving factory with many parts working together in a complex operation.

More than 27,000 concrete segments manufactured at the Polo Flat, Cooma, precast facility will be used to line the tailrace tunnel with the segment erector, segment feeder, segment cranes, and sophisticated grouting system all onboard the TBM.

The TBM is also equipped with a guidance system that provides data to the machine’s pilot, to the nearest millimetre. This information is mirrored above ground and monitored by Snowy 2.0’s construction and engineering teams.

Snowy 2.0: Underpinning Australia’s transition to a renewable energy future

News

SNOWY 2.0 TANTANGARA TUNNELLING UPDATE

28/07/2023

Successful ground stabilisation works and construction of a slurry treatment plant at Tantangara have been carried out by Snowy 2.0 teams prior to tunnel boring machine (TBM) Florence being able to restart excavation of the headrace tunnel.

Final commissioning tests are underway for the onsite slurry plant that means the dual-mode machine can switch from open excavation to a closed, pressurised mode. This method of excavation will enable stable excavation and efficient progress through softer ground conditions when required.

A significant testing regime has confirmed grouting and stabilisation of the loose material around TBM Florence has been effective.

Additional stabilisation continues from the surface to solidify loose material above the machine and directly in front of the TBM cutterhead and the rock mass the machine is just short of.

We’re carrying out rotations of the cutterhead and minor advances of TBM Florence to ensure the machine is correctly positioned for final commissioning and to confirm the ground support activities are working.

Additionally we are working with NSW departments on environmental approvals for remediation of the surface depression above TBM Florence and to provide assurance that this will not reoccur.

The plan is likely to go on public display in the coming weeks.

The slurry treatment plant will process and separate materials used when the TBM is in closed excavation mode, including bentonite (an absorbent, swelling clay), which is placed into a tank and reused.

News

SNOWY 2.0 PROJECT UPDATE – JUNE 2023

26/06/2023

In the June update of the pumped-hydro expansion of the mighty Snowy Scheme, Snowy 2.0’s Alex Woschitzka explains construction progress at the massive Talbingo and Tantangara intakes. The project’s Quality Coordinator also checks in on the transformation of a narrow fire trail through steep terrain into a road suitable for heavy vehicles.

Significant progress has been made at the Talbingo intake, where water will exit the tailrace tunnel when Snowy 2.0 generates power. This is also where water enters the tunnel for pumping.

Construction teams have moved more than 310,000 cubic metres of earth to date, about half the total amount that will need to be moved. More than 24,000 metres of rock bolts have been installed and 8,300 square metres of shotcrete sprayed to support the wall.

As part of quality assurance, the shotcrete must be tested for compressive strength. Samples are taken from the truck and also cored from the face to ensure it meets the intended strength requirements. For the rock bolts, pull-testing is conducted to ensure they have been correctly installed, and meet the design and quality requirements.

When completed, the total height of the Talbino intake excavation will be 104 metres, with about 31 metres of that below the water level. The concrete intake structure will be an impressive 50 metres in height.

Construction is well underway on an internal access road through mountainous terrain. With the help of Snowy 2.0 subcontractor Leed, a narrow fire trail will be widened into a six-kilometre road to enable heavy vehicles to access a rock emplacement area on Talbingo Reservoir.

Works began from both ends across very challenging terrain, achieving a major milestone recently when the two pioneering fronts joined across the Middle Creek cliffs. A temporary bridge with a 36-metre span has been installed across Middle Creek and is capable of supporting a fully-loaded 80-tonne dump truck.

In another milestone achieved in June, stage one earthworks have now been completed at the Tantangara intake. The first stage involved excavation of about 205,000 cubic metres of earth with a further 78,000 cubic metres of drilling and blasting earthworks expected in the next stage.

To support the excavation, more than 18,000 metres of rock bolts have been drilled and installed, and approximately 6,100 square metres of shotcrete sprayed. The excavation is currently about 26 metres deep and will be extended to a total depth of 55 metres.

Tantangara intake is where water will enter the headrace tunnel when the Snowy 2.0 power station is in generation mode. When in pumping mode, water will exit through the intake and fill Tantangara Reservoir.

News

SNOWY 2.0 PROJECT UPDATE – MAY 2023

30/05/2023

May was a milestone month for the Snowy 2.0 team with the completion of the emergency, cable and ventilation tunnel, or ECVT – another vital step in the construction of Snowy Hydro’s new pumped-hydro expansion megaproject.

Snowy 2.0 senior project manager Rodd Brinkmann explains the next stage of the project from his base at Lobs Hole, as preparation for excavation for the underground power station cavern gets underway.

The ECVT is a 2.93 kilometre tunnel that runs adjacent to the main access tunnel and provides alternate access to the site of the underground power station. Tunnel boring machine (TBM) Kirsten recently completed excavation of the ECVT and will soon start tunnelling the inclined pressure shaft. This very steep shaft links to the headrace tunnel from Tantangara Reservoir.

TBM Kirsten will need to undergo modifications to excavate the 25-degree incline, including installation of a screw conveyor to extract excavated rock from the cutterhead to a sandwich conveyor system. With such a steep incline, construction of the 1.45km shaft with its concrete segment-lined tunnel, will be a world first.

In the main access tunnel, or MAT, construction of cross passages and construction access tunnels is well underway with 850 metres of drill and blast tunnel excavation completed. Of the five cross passages linking the MAT and the ECVT, two are fully excavated and waiting on breakthrough into the ECVT. Key construction tunnels are also being excavated to provide access to the machine hall, transformer hall and the top of the tailrace surge shaft.

Workers have reached the main cavern areas from both ends and will soon commence excavation and support of the cavern crowns or ceilings of the power station halls. The excavation sequence of the cavern crowns is critical, as the in situ rock mass will relax and move inwards as the excavated void increases. These movements will be closely monitored during the process. Geotechnical drilling and plate load tests will measure and confirm the characteristics of the rock geology around the power station.

Dynamic 3D models of the power station caverns are also being used. 3D models are created using digital engineering to transform 2D design drawings and are displayed in the state-of-the-art immersive theatre at Snowy Hydro’s Discovery Centre in Cooma, where Snowy 2.0 engineers can collaborate with power station design experts from around the world. Once construction is complete, the detailed 3D models will be a valuable tool for asset maintenance.

With so much activity in the tunnels, the current Snowy 2.0 underground workforce will increase by another 200 people in the coming months.

News

SECOND TUNNEL EXCAVATED FOR SNOWY 2.0

22/05/2023

The Snowy 2.0 pumped-hydro mega project has achieved another important construction milestone, with a second tunnel excavation completed at Lobs Hole in the Snowy Mountains.

The 2.93-kilometre emergency, cable and ventilation tunnel (ECVT) has been excavated and fully lined with 13,140 locally-manufactured concrete segments by tunnel boring machine (TBM) Kirsten. This achievement follows the excavation of the adjacent main access tunnel (MAT), which was completed in October 2022.

Snowy Hydro CEO Dennis Barnes said Snowy 2.0 was continuing to make solid progress, with around six kilometres of tunnelling by TBMs completed and drill and blast excavation of the power station cavern about to start.

“We are extremely pleased the ECVT excavation has been completed and the whole project team is excited to be moving into the next critical phase of construction. Our huge power station cavern will be located about 800 metres underground and will be one of the largest and deepest in the world.

“We are also using drill and blast methods to construct cross passages linking the ECVT with the MAT.

“Meanwhile TBM Kirsten, which is setting a global standard in TBM technology, is being modified to carry out another very specific task – to excavate the inclined pressure shaft and line it with specially-designed and locally manufactured concrete segments.

“The shaft is 1.45km long and excavating a segment lined tunnel of this length at a very steep 47% incline using an 11-metre diameter TBM is without precedent internationally.”

Modifications to Kirsten include altering the levels of the TBM’s tanks and mechanical equipment so they remain horizontal when travelling up the incline, and converting the walkways into steps and ladderways.

Also being installed is a screw conveyor to extract excavated rock from the cutterhead to a sandwich conveyor system with face-to-face rubber belts that help constrain the crushed rock so that it can be transported down the steep slope without spillage.

Additional plant and equipment will also be installed in the ECVT tunnel to support the excavation activities including; an overhead crane, a conveyor transfer station, monorail manrider for personnel access and rack and pinion mechanism for plant access to the TBM,

There is currently a project workforce of more than 2,700 across four major worksites building Snowy 2.0, a critically important, pumped-hydro expansion of the Snowy Scheme that will help underpin Australia’s transition to renewables.

ECVT fast facts

2.93-kilometres in length
10 metres internal diameter
Lined with 1,460 concrete rings with 9 segments per ring installed by TBM Kirsten
Precast segments are manufactured locally in Cooma
ECVT has five cross-passages linking it to the adjacent main access tunnel
Provides secondary access with clean air to the power station complex and will be used permanently for ventilation and high voltage cables, and intermittently for general access and maintenance.

News

SNOWY 2.0 LEADERSHIP UPDATE

18/05/2023

Snowy Hydro Managing Director and CEO Dennis Barnes today announced Snowy 2.0 Project Director Kieran Cusack had resigned to take up a role as Chief Executive Officer of Queensland Hydro, following a 13-year career with Snowy Hydro.

Mr Cusack has been involved in Snowy 2.0 – a critically important, pumped-hydro expansion of the Snowy Scheme that will enable Australia’s transition to renewable energy – since 2017.

Mr Barnes thanked Mr Cusack for his energy, dedication and leadership.

“Kieran was there when the first sod was turned for Snowy 2.0 in 2019, following a rigorous planning and approvals process, and he was integral to the establishment of multiple worksites, growth of the Snowy 2.0 workforce to 2,700 people, as well as the excavation of the first new two tunnels in our iconic Scheme since its construction.

“Kieran has guided Snowy 2.0 through many challenges and his significant contribution to the project is greatly appreciated. The whole team wishes Kieran well and is pleased that he will continue to contribute to Australia’s energy transition,” Mr Barnes said.

Mr Barnes said Snowy 2.0 had a strong talent pipeline and was pleased to appoint Dave Evans, the current Engineering Director, as Project Director.

“Dave has also been integral to this project from the start and he’s passionate about the world-leading innovation behind its construction and the key role it will play in Australia’s energy transition,” Mr Barnes said.

News

SNOWY 2.0 PROJECT UPDATE – APRIL 2023

09/05/2023

In our April update of the Snowy 2.0 pumped-hydro project, Snowy Hydro CEO Dennis Barnes pays tribute to Alan Machon, who tragically died in a road accident. Alan was a member of the Future Generation team working to deliver Snowy 2.0.

Out onsite, Snowy 2.0 Integration Manager, Paul Smith, joins us from the recently completed Ravine Road, we meet the captain of the Lobs Hole Emergency Response Team and we stop by the Talbingo adit to check on progress of TBM Lady Eileen Hudson’s reassembly in readiness for her second major tunnelling task.

The construction of Ravine Road was one of the first projects undertaken for Snowy 2.0. Originally little more than a dirt track, the main access into the Lobs Hole site has been transformed to provide safe all-weather access for project trucks and light vehicles.

The steep, winding 15-kilometre road is now two lanes wide and in March 2023 it was fully sealed with line marking, snow poles and reflective markers installed to help guide road users in low visibility conditions. With an 850-metre elevation difference from top to bottom, the upper section of Ravine Road is above the snow line.

Areas disturbed during construction are being reinstated and the rehabilitation process is underway. When the Snowy 2.0 project is complete, the general public will be able to use Ravine Road to access a popular camping area once restricted to 4WD vehicles.

At the Talbingo adit, tunnel boring machine Lady Eileen Hudson is being reassembled in preparation for excavation of the tailrace tunnel. New components including the cutterhead and tailskin will soon be lifted into the TBM cradle to be attached to the shields and main drive. After completing the excavation of the main access tunnel, the TBM gantries were removed using self-propelled mobile transporters and will be attached to the machine so it can begin excavating the six-kilometre tunnel. The vertical conveyor belt stacker has been assembled, construction of the water treatment plant is progressing and the grout plant will soon be commissioned.

Snowy 2.0 emergency response teams, or ERTs, regularly conduct training to keep the onsite workforce safe and to prepare for possible emergencies such as vehicle rescues and bushfires.

Future Generation’s Lobs Hole ERT captain, Drew Butters, is a Snowy Mountains local who has worked on the project for three years. He has had a life-long association with emergency response and fire fighting in the Rural Fire Service and is currently the Adaminaby RFS captain.

ERTs are trained to deal with bushfires, general firefighting, emergency response and rescue. Emergency Response Teams have a small crew with experienced full-time members, plus a number of volunteers at each work site.

News

SNOWY 2.0 – PROJECT UPDATE

03/05/2023

Snowy Hydro’s management team is working towards resetting the delivery timeline and budget for the Snowy 2.0 project with its principal contractor, Future Generation Joint Venture (FGJV), as part of an ongoing project review.

The reset will ensure this critically important clean energy infrastructure project is placed on a robust and sustainable footing for FGJV to progress the schedule in a realistic and productive manner.

While significant progress has been achieved by FGJV on Snowy 2.0, there are delays to Snowy 2.0’s contracted schedule and likely cost impacts beyond the contingency allowed, which remain under review by Snowy Hydro.

There are four broad categories of factors contributing to schedule delays and likely cost increases:

the mobilisation and resourcing implications of the COVID-19 pandemic;
the effect of global supply chain disruption and inflation impacting the cost and availability of a skilled workforce, materials, and shipping;
a number of design elements requiring more time to complete due to their technically complex nature, with the final design now being more expensive to construct; and
the impact of variable site and geological conditions, with the most impactful being the soft ground encountered that is delaying tunnel boring machine (TBM) Florence’s progress at Tantangara.

Snowy Hydro anticipates that the timeline for full commercial operation is delayed by a further 12-24 months from the current publicly released dates:

Milestone	Earliest	Latest
First Power	June 2027 – December 2027	June 2028 – December 2028
Commercial operation of all units	December 2028	December 2029

Snowy Hydro expects more detail on the budget implications of the project reset around July 2023, and this will be clearly communicated with key project stakeholders.

Snowy Hydro CEO Dennis Barnes said:

“Since joining Snowy Hydro earlier this year I have focused on ensuring our major projects are placed on a realistic and sustainable footing, while maintaining construction progress.

“This project is critically important to the transition of Australia’s electricity grid and it’s crucial that we are working to a safe, efficient and realistically achievable timeframe to enable orderly planning for all our stakeholders. I am committed to being transparent about our progress and how we are proactively managing the inevitable issues and challenges that arise in a complex project like this.

“While many other major infrastructure projects have been impacted by the same challenges, Snowy 2.0 continues to make positive progress.

“Snowy 2.0 is providing significant employment and economic benefits both regionally and domestically. There are currently over 2,400 people employed on the project and thousands more jobs generated indirectly through supply chains and support services.

“TBM Kirsten has tunnelled 2.9 km to reach the underground power station cavern complex and we now have access to this site from both ends. We shortly expect to commence the 6km tailrace tunnel that will feed into Talbingo Reservoir and the excavation of intakes at Talbingo and Tantangara are proceeding very well.”

News

SNOWY 2.0 TUNNELLING UPDATE

01/03/2023

Snowy 2.0 is a critically important, pumped-hydro expansion of the Snowy Scheme that will help underpin Australia’s transition to a renewable energy future.

Construction of Snowy 2.0 continues to make progress across multiple worksites. At Lobs Hole, tunnel boring machine (TBM) Lady Eileen Hudson has completed excavation of the 2.7km main access tunnel and TBM Kirsten is almost finished excavating the adjacent 2.9km emergency, cable and ventilation tunnel (ECVT).

At Tantangara, the project team is currently conducting works to stabilise encountered soft ground and enable TBM Florence to restart excavating the headrace tunnel.

TBM Florence has tunnelled about 150 metres and is currently located at a depth of approximately 30 metres below ground. A surface depression recently emerged in the ground above TBM Florence, which has temporarily delayed progress on this particular worksite. The depression is approximately nine (9) metres deep and continues to be monitored.

Importantly, the integrity of the tunnel, which is supported by a concrete lining and steel ribs, has not been compromised, and nor has the capacity of the TBM. The project team has paused the machine until about 10-15m of weak material in front of it is stabilised, prior to striking hard rock, when we expect normal tunnelling to resume.

Snowy 2.0 principal contractor Future Generation Joint Venture (FGJV) is drilling probe holes through the front of the excavation to understand the ground conditions immediately ahead of the TBM. Grout is injected in front of the excavation to improve any weak zones and limit any water flows. Grouting is well underway from TBM Florence, with 20 grout holes drilled to date in the current location.

FGJV is currently installing a slurry plant for the TBM that will mean the machine can switch from open excavation to a closed, pressurised mode. This will deliver stable excavation and efficient progress through the softer ground conditions, while enabling the TBM to switch back to open mode when in harder rock.

Stage two of the works to stabilise the ground in front and above the machine will involve ground improvement from the surface. Once the area is grouted, the depression will be backfilled and revegetated.

Snowy Hydro has been responsibly operating the Snowy Scheme in Kosciuszko National Park for decades and remains committed to careful and safe management of this tunnelling challenge in a sensitive environment.

The Snowy 2.0 workforce of more than 2,200 is continuing to achieve milestones across a range of work fronts as they build the huge pumped-hydro expansion of the Snowy Scheme.

At Lobs Hole, in the main access tunnel, works are continuing on multiple drill and blast cross tunnels. These will link with the ECVT, where TBM Kirsten has tunnelled 2.8km and has reached the site of the underground power station cavern complex. This is a great milestone for Snowy Hydro as we now have access to the excavation site from both ends of the cavern, which will be one of the largest and deepest in the world.

TBM Kirsten is setting a global standard in tunnel boring technology, just as the original Snowy Scheme developed rock bolting techniques that are still used throughout the world today. The machine will soon be modified to excavate the inclined pressure shaft on a steep uphill angle. Modifications include altering the levels of the TBM’s tanks and mechanical equipment so they are level when travelling up the 25-degree incline, and converting the walkways on the machine’s sides into steps and ladderways.

Meanwhile TBM Lady Eileen Hudson is being reassembled at the Talbingo adit with some new components including a cutterhead and shields. It will be launched into the mountain later this year to excavate the 6km tailrace tunnel, which will feed into Talbingo Reservoir.

Excavation of intakes at Talbingo and Tantangara is advancing steadily, along with the giant surge shaft on the Marica plateau that is already excavated to a depth of more than 20m.

Despite the ongoing challenges faced by all large infrastructure projects, Snowy 2.0 continues to achieve progress across a large number of remote work fronts.

Snowy Hydro remains fully committed to ensuring the local community and stakeholders are kept updated on this pumped-hydro mega project that will provide the National Electricity Market with 2,000 megawatts of on-demand generating capacity and a huge 175 hours of energy storage.

Caption: 3D imagery of surface depression above TBM Florence at Tantangara, created using photogrammetry technology

Caption: Snowy 2.0 project overview.

Caption: Talbingo adit, where TBM Lady Eileen Hudson is being reassembled for excavation of the tailrace tunnel.

News

SNOWY HYDRO RESPONDS TO ABC 7.30

12/02/2023

The National Electricity Market (NEM) is in the process of fundamental transformation – from baseload coal with some peaking assets to a complex, highly interconnected system with variable renewable energy backed by firming and storage. Snowy 2.0, with its massive 2,000 megawatts of generation and 350,000 megawatt hours of energy storage, is critical to Australia’s decarbonisation as it will help underpin the rapid transition to a fully renewable future.

Solid construction progress is occurring across a large number of Snowy 2.0 work fronts. At Lobs Hole, the Talbingo intake is well underway, the main access tunnel excavation by tunnel boring machine (TBM) Lady Eileen Hudson is completed and the emergency, cable and ventilation tunnel excavation by TBM Kirsten is close to completion.

Across the project, and as anticipated, the ground conditions encountered by the Snowy 2.0 TBMs are highly variable, ranging from soft, sandy ground to extremely hard rock. TBM Florence at Tantangara has been traversing a section of soft ground and is temporarily paused while plans to remediate a surface depression above the Tantangara adit (as reported on the Snowy Hydro website in December) are finalised.

Complex and variable ground conditions are not unusual in such projects. Snowy Hydro and the Snowy 2.0 EPC contractor, Future Generation Joint Venture, are focused on delivering the project safely and in a manner respectful of the sensitive environment, while managing impacts caused by external events including COVID-19, high material costs, global supply chain constraints, labour shortages across the Australian construction industry and ongoing weather conditions.

Commercial claims on construction projects are also common. As with other major infrastructure projects, Future Generation Joint Venture has experienced significant impacts from COVID, resourcing and supply chain challenges. Claims submitted to Snowy Hydro by the contractor continue to be assessed and paid appropriately, in accordance with contractual requirements.

Snowy Hydro’s BBB+ credit rating was reaffirmed by Standard & Poors in December. The move from stable to negative outlook primarily reflects forecast depressed earnings in FY2023 resulting from the critical role the company played during volatile market conditions in May to June 2022 and the potential project cost escalations for Snowy 2.0 and the Hunter Power Project owing to general market inflation and global supply chain issues. As Snowy’s earnings profiles become more certain, S&P will continue to monitor and assess Snowy’s outlook. At this stage, there are no current plans for any additional Shareholder equity beyond the current arrangements for Snowy 2.0 and Hunter Power Project.

The Snowy 2.0 budget is $5.9 billion and remains unchanged since the project approval. Snowy Hydro will continue to assess inflation and global supply chains moving forward.

News

SNOWY 2.0 RENEWABLE ENERGY PROJECT – FIND OUT MORE!

06/02/2023

Snowy 2.0, a huge pumped-hydro expansion of the mighty Snowy Scheme, is at the heart of Australia’s transition to a renewable energy future and this is your chance to find out more about the project at local information sessions.

Snowy Hydro will host the Snowy 2.0 community information sessions starting from Thursday 9 February, providing locals with opportunities to be updated, ask questions and provide feedback.

Hear from the Snowy 2.0 project team about:

Current project activities and news;
Traffic management and road safety initiatives;
Accommodation, recreation access and other local issues;
Jobs and training on Snowy 2.0.

New Snowy Hydro CEO Dennis Barnes said construction of Snowy 2.0 was providing significant economic and social benefits right across the region.

“There are 2,200 people employed on the project and hundreds of millions of dollars are being invested locally, so it continues to be a very exciting time for communities throughout the Snowy Mountains,” Mr Barnes said. “I encourage everyone to come along to one of our sessions to hear the latest about Snowy 2.0, discuss any local concerns that you may have and answer your questions.”

Hosted by Snowy Hydro, the sessions will be attended by representatives from Future Generation Joint Venture, our Snowy 2.0 contractor building Snowy 2.0.

Talbingo and Tumbarumba will be drop-in sessions, with the chance to speak one-on-one with project team members, while there will be a formal presentation followed by community Q&As in Tumut, Cooma and Adaminaby.

Community information sessions schedule:

Thursday 9 February Talbingo shops 11.00am-2.00pm
Thursday 9 February Club Tumut 6.00pm-7.30pm
Friday 10 February Near Tumbarumba IGA, The Parade 11.00am-2.00pm
Tuesday 28 February Cooma Ex-Services Club 6.00pm-7.30pm
Wednesday 1 March Adaminaby Bowling Club 6.00pm-7.30pm