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

News

ADAMINABY TRUCK PARKING PROJECT

21/12/2022

Snowy Hydro is proud to be supporting a Snowy Monaro Regional Council project providing new truck parking bays in Adaminaby.

Six 3-metre wide and 30-metre long sealed parking bays will be built on the Snowy Mountains Highway in Adaminaby, allowing heavy vehicles to safely stop for logbook, food and drink breaks.

Acting Snowy Hydro CEO Roger Whitby said a $188,000 contribution from Snowy Hydro would assist council in delivering an important improvement for the town.

“We are extremely pleased to be partnering with Snowy Monaro Regional Council on the truck parking bays project,” Mr Whitby said.

“There is a lack of heavy vehicle parking areas between Cooma and Tumut, along with increased numbers of heavy vehicles passing through Adaminaby with the Snowy 2.0 project. So this is an opportunity to help with a really good legacy initiative that will benefit the town’s economy,” Mr Whitby said.

“Truck drivers taking a break in Adaminaby on their trips through the Snowy Mountains will have fit-for-purpose, sealed and lit bays to park their vehicles in.

“This improves safety for them and other road users, and means heavy vehicles will no longer need to park in residential areas of the town.”

The truck parking project, which is being conducted in consultation with Transport for NSW, will get underway early in 2023.

A temporary repair has been carried out to the area in front of the Big Trout statue in Adaminaby for long vehicle parking in the short-term.

In addition to the truck parking initiative, a separate council project will provide permanent parking facilities in Adaminaby that accommodate long vehicle parking for cars towing boats and caravans, along with recreational vehicles.

The two projects are scheduled for completion by April 2024, weather conditions permitting.

The Adaminaby parking projects are proudly funded by the Bushfire Local Economic Recovery (BLER) Fund, which is part of the $4.5 billion bushfire support program co-funded by the Australian and NSW governments for bushfire recovery, response and preparedness in NSW.

News

SNOWY 2.0 HEADRACE TUNNEL UPDATE

16/12/2022

Snowy 2.0 teams are monitoring a surface depression that has emerged above the headrace tunnel at Tantangara.

The integrity of the tunnel has not been compromised, and tunnelling is continuing while work to remediate the surface depression above tunnel boring machine (TBM) Florence is carried out. There is a safety exclusion zone around the surface depression.

Ensuring the safety of the Snowy 2.0 workforce and members of the public is the priority for Snowy Hydro and principal contractor Future Generation Joint Venture.

The Snowy 2.0 teams are conducting geophysical investigations of the area and continuing grouting operations and probing from the TBM.

As previously indicated, the ground conditions encountered by the TBMs on Snowy 2.0 have been highly variable, ranging from very loose, sandy ground to extremely hard rock in fluctuating groundwater conditions.

TBM Florence is transitioning from soft material into harder rock conditions.

News

SNOWY HYDRO STATEMENT ON CLOUGH – UPDATED

09/12/2022

Snowy Hydro is aware of the announcement regarding the financial status of Clough, the Snowy 2.0 Future Generation Joint Venture partner.

Snowy Hydro notes Clough’s earlier financial disclosure indicates financial issues with projects separate and unrelated to Snowy 2.0.

As work continues on Snowy 2.0, Snowy Hydro’s first priority is ensuring the wellbeing and continuity of Clough’s workers on the project.

Snowy Hydro welcomes the immediate funding provided by joint venture partner Webuild for the payment of wages to all Clough employees working on the Snowy 2.0 project.

We are working closely with the joint venture to ensure construction on the project progresses smoothly.

Resolving Clough’s future through the voluntary administration process will take some time and Snowy Hydro will support this process wherever possible.

News

SNOWY HYDRO STATEMENT ON CLOUGH

06/12/2022

Snowy Hydro is aware of the announcement regarding the financial status of Clough, the Snowy 2.0 Future Generation Joint Venture partner.

Snowy Hydro notes Clough’s earlier financial disclosure indicates financial issues with projects separate and unrelated to Snowy 2.0.

As work continues on Snowy 2.0, Snowy Hydro’s first priority is ensuring the wellbeing and continuity of Clough’s workers on the project.

We are working closely with the joint venture to ensure construction on the project progresses smoothly.

Resolving Clough’s future through the voluntary administration process will take some time and Snowy Hydro will support this process wherever possible.

News

MILESTONE FIRST TUNNEL COMPLETED FOR SNOWY 2.0

11/10/2022

Snowy Hydro is celebrating the completion of excavation for its first tunnel for Snowy 2.0, with the Lady Eileen Hudson tunnel boring machine (TBM) reaching the location of the new underground power station cavern.

The 11-metre diameter TBM has excavated 2.85km to create the main access tunnel at Lobs Hole in the Snowy Mountains, where a workforce of more than 2,200 people are building Snowy 2.0 – the 2,000 megawatt pumped hydro expansion of the mighty Snowy Scheme.

Snowy Hydro acting CEO Roger Whitby said the tunnelling achievement was a significant milestone, with Snowy 2.0 set to underpin the nation’s transition to renewables.

“Snowy 2.0 will not only provide on-demand, quick-start generating capacity for the National Electricity Market (NEM), but a massive 350,000 gigawatt hours of energy storage,” Mr Whitby said.

“This is our first new major tunnel excavation in decades, since construction of the original Scheme, and it gives us access to the site where we will create the enormous cavern 800m underground that will house our power station.

“The TBM Lady Eileen Hudson and our teams from Snowy Hydro and contractor Future Generation Joint Venture have done a great job to complete this critical tunnelling task.

“However, there’s no slowing down. Work across the project continues to move ahead rapidly and this tunnel boring machine is now being dismantled so it can be moved to the Talbingo adit where it will be reassembled with some new components for excavation of the 6km tailrace tunnel.”

While dismantling of the TBM conveyor belt gets underway in the main access tunnel, drill and blast activities are ongoing to excavate cross passages and tunnels to gain access to the power station complex, which will include a 251m-long, 52m-high machine hall cavern and 223m-long, 46m-high transformer hall cavern.

The new work fronts associated with the powerhouse will create further employment opportunities on this clean energy mega-project.

The Snowy 2.0 project will link Tantangara Reservoir (top storage) with Talbingo Reservoir (bottom storage) through 27km of tunnels and a power station with pumping capabilities.

This will enable water to be released for energy generation at times of peak demand and then pumped back to the top storage when there is excess renewable energy in the system, ready to generate again.

Main access tunnel fast facts:

10 metres in diameter
Lined with 1,422 concrete rings installed by the TBM
Rings comprise 12,798 individual segments manufactured locally in Cooma
Has four cross-passages linking it to the adjacent emergency, cable and ventilation tunnel
Also has four cross tunnels and a turning bay to facilitate construction access around the power station complex
Provides pedestrian and vehicle access into the power station

News

TBM FLORENCE ON THE MOVE

05/10/2022

Tunnel boring machine (TBM) Florence continues excavating the Snowy 2.0 headrace tunnel at Tantangara following successful reinforcement works.

As anticipated, the ground conditions encountered by the TBMs on Snowy 2.0 have been highly variable, ranging from soft, sandy ground to extremely hard rock.

The Snowy 2.0 teams have been working collaboratively to safely navigate the softer ground conditions experienced at Tantangara, including high groundwater inflows.

As part of the tunnelling process we probed in advance of the TBM, identifying the soft ground ahead, and then consulted with our expert design consultants to plan for stabilisation works. TBM Florence has been specifically designed to encounter these variable ground conditions.

Consolidation grouting around the perimeter of the headrace tunnel, and internally, the installation of steel ribs to reinforce the concrete segmental lining in the soft zone, have been carried out to ensure stability and manage groundwater inflows. Additional instrumentation to monitor ground performance has also been installed.

Successful execution of the reinforcement works by Snowy 2.0 principal contractor Future Generation Joint Venture (FGJV) is enabling the TBM to carefully thrust off the segments and move forward.

Snowy Hydro expects variable and soft ground conditions to occur in sections of the very long 17-kilometre headrace tunnel. Further ground improvement works – a typical tunnelling process – will be carried out where required so the TBM can safely advance.

Snowy Hydro and its Future Generation Joint Venture partners are working towards the successful delivery of Snowy 2.0.

Click here for images of TBM Florence and the reinforcement works.

News

MILESTONE FOR LOCAL SNOWY 2.0 CONCRETE SEGMENT FACTORY

09/08/2022

Snowy Hydro’s Snowy 2.0 precast factory in Cooma has achieved an impressive milestone, with manufacturing completed for all concrete segments that will line the dry access tunnels.

More than 25,000 of these seven-tonne segments have been produced at the Polo Flat factory, which employs 120 people from the 2,100-strong Snowy 2.0 workforce. The segments are being used to line the main access tunnel and emergency, cable and ventilation tunnel at Lobs Hole.

In total, 36,000 or 27% of the 130,000-plus segments needed to line all of the Snowy 2.0 tunnels have now come off the Polo Flat production line, said Paul Broad, Snowy Hydro’s Managing Director and CEO.

“We’re proud to be manufacturing and investing locally, and providing employment opportunities for local people as well,” Mr Broad said. “The precast factory is operated by our principal contractor Future Generation Joint Venture and it is powering along.

“To efficiently and safely produce enough of these massive concrete segments to line the 5.6 kilometres of dry access tunnels is a terrific achievement.”

The factory supports the operation of the three Snowy 2.0 tunnel boring machines, which are excavating 27 kilometres of tunnels from Tantangara Reservoir to Talbingo Reservoir for the Snowy 2.0 pumped-hydro expansion of the Snowy Scheme.

The Polo Flat facility includes a concrete batching plant and segment manufacturing from two automated carousels, producing up to 24 rings, each one made of nine segments, per day.

Many of the raw materials like aggregates and sand are sourced from the local Schmidt Quarries at Mt Mary and Nimmitabel, which is reducing transport time and costs. Concrete is mixed within the batching plant, which is then transferred into the factory and poured into specially-designed moulds.

With the use of innovative robotics, the moulds progress along the carousel as the segments cure and finish. There is an onsite laboratory and testing to check the quality of every segment produced.

Snowy 2.0 is leading the way in Australia to successfully deploy and use robots to automate the process of demoulding, cleaning and application of the release agent on the moulds, before pushing them through to the next production stage. This has allowed the factory to maintain a safe and low-noise working environment for workers.

It takes approximately eight to 10 hours to cure and de-mould each segment from start to finish, then they are stored for about two weeks before being transported to site, loaded into TBMs and installed in the tunnels.

FAST FACTS – DRY TUNNEL SEGMENTS

Number produced = 25,210
Distance if all these segments were placed side-by-side = 86.3 kilometres
Tonnes of concrete used = 151,260
Equivalent rings (nine segments per ring) = 2,802
These segments – designed to provide durability under extreme fire loads – have been laboratory tested for fire loads of 1,350 degrees Celsius for up to 120 minutes.

Snowy 2.0 project background: Snowy 2.0 is a nation-building project that will underpin thousands of megawatts of renewables and will continue to keep the lights on for generations to come.

Snowy 2.0 will link two existing Snowy Scheme reservoirs, Tantangara and Talbingo, and its new power station with six pump-turbines will be located about 800m underground. Water in the top storage will be released for energy generation at times of peak demand and pumped back at times when there is excess renewable energy in the grid, so Snowy 2.0 is ready to meet demand when needed.

News

ANAO REPORT: SNOWY 2.0 GOVERNANCE OF EARLY IMPLEMENTATION

17/06/2022

Snowy Hydro welcomes the ANAO’s findings that the Company’s governance of the project is effective, with no recommendations raised.

Specifically, the audit concluded that Snowy Hydro has appropriate arrangements in place to govern, monitor and report on the project; including in relation to managing the Engineering, Procurement & Construction contract with our principal contractor Future Generation JV.

From the outset, Snowy Hydro established tailored governance arrangements to oversee the development and implementation of this critical energy infrastructure project.

It is pleasing that the effectiveness of these arrangements have been independently assessed by the ANAO, with no material exceptions identified.

To read the full ANAO report please click here.