News

SNOWY 2.0 PROJECT UPDATE – DECEMBER 2023

19/12/2023

In December’s Snowy 2.0 update, Snowy Hydro CEO Dennis Barnes recaps progress and key events throughout the last 12 months.

The review and reset of the pumped-hydro Snowy Scheme expansion project has been a major milestone in 2023.

The reset has put Snowy 2.0 on a robust and sustainable footing, with new contract arrangements in place and a revised cost of $12 billion. The full commercial operation date for the new 2,200 megawatt power station is December 2028.

The focus for the project is prioritising safety and environmental outcomes while achieving construction program targets.

Meanwhile tunnel boring machine (TBM) Florence is underway again at Tantangara after a significant period paused in soft ground conditions after a surface depression formed above the cutterhead. Following an extensive process of ground stabilisation, the project has recently received NSW government approval for a planning modification, enabling the machine to restart tunnelling the headrace adit.

Progress highlights for 2023 include TBM Lady Eileen Hudson being relaunched in July to excavate her second tunnel for the project – she’s now one kilometre into the tailrace tunnel.

There are more than 2,700 people employed on Snowy 2.0 and a total of 20 million hours have been worked to date.

Drill and blast excavation of the power station cavern crowns is well underway from both ends of the machine and transformer halls and we’re seeing large power station components manufactured by Voith Hydro delivered to site.

Senior electrical quality engineer Victor Teo is in Shanghai, China, where Voith is fabricating some of the key electrical components for Snowy 2.0, including stator bars, rotor bars and poles.

The stator bars are bent to a precise shape and highly specialised insulation tape is applied by both machine and technician. These bars are part of the generator which is connected to the transformer to deliver electrical current.

Insulation resistance and short circuit tests are conducted on every bar to ensure compliance with our engineering requirements and Australian Standards.

468 stator bars are needed for each of the six pump-turbine generator units, so over 3,000 of them including spares will be produced.

There is always a member from the Snowy Hydro team in China to conduct quality assurance activities, monitor progress, act as a conduit to close out technical issues and to conduct Factory Acceptance Tests

Snowy 2.0 project manager and environmental engineer Emily Martin is at Tantangara, where TBM Florence is tunnelling in slurry, or closed, mode. This mode utilises the onsite slurry treatment plant and allows the team to pressurise the ground around the TBM to provide additional stability.

The intake excavation works at Tantangara are progressing well, with stage 2 well underway.

This involves another 78,000 cubic metres of drilling and blasting earthworks, along with rockbolt installation and shotcreting.

The intake excavation, which is where water will enter the headrace tunnel, is currently about 35 metres deep and it will be extended to a total depth of 55 metres.

News

SNOWY 2.0 TUNNELLING RESTARTS AT TANTANGARA

13/12/2023

Tunnelling of the Snowy 2.0 headrace adit at Tantangara has restarted following NSW government approval for the project’s planning modification.

Tunnel boring machine (TBM) Florence’s initial advance commenced last week. Tunnelling is being conducted in closed (slurry) mode and progress is slow and steady. The project has engaged specialist experienced personnel to manage this process.

Snowy Hydro CEO Dennis Barnes welcomed the milestone, which comes after a delay caused by soft ground conditions and the emergence of a sinkhole above TBM Florence.

“We were very pleased to receive the green light for tunnelling at Tantangara to recommence and to allow remediation of the subsidence area,” Mr Barnes said.

“The conditions of approval were developed through the extensive review, public consultation and determination process, and will be strictly adhered to as we get back underway with excavation of the tunnel.

“The Snowy 2.0 delivery team is acutely aware of its responsibilities working in the sensitive environment of Kosciuszko National Park. We are focused on achieving excellent environmental outcomes throughout construction of this pumped-hydro expansion of the Snowy Scheme and critical infrastructure for Australia’s transition to renewable energy.”

The modification approval extends the project’s western boundary above the TBM at Tantangara. This will enable close monitoring of surface conditions as TBM Florence advances. Surface monitoring will continue until there is at least 100 metres of overburden (distance from the TBM to the surface).

In preparation for the restart of tunnelling at Tantangara, extensive geotechnical investigations were carried out on the headrace adit alignment, along with ground improvement works.

Elsewhere on the project:

At Talbingo, the Snowy 2.0 project continues to make good progress with excavation of the tailrace tunnel. TBM Lady Eileen Hudson has excavated approximately 1,000 metres since its relaunch in July.
Manufacturing of Snowy 2.0’s six pumped-hydro units that will generate up to 2,200 megawatts of power for Australia’s electricity grid is in full swing.
Five of the six 153 tonne spiral cases have been manufactured, along with four draft tube liners and cones, three main inlet valves and other major power station components, including the first turbine runner. One of the 13 metre long, 7.5 metre wide spiral cases was recently delivered to Lobs Hole, making a 442-km night time journey from Port Kembla to the Snowy Mountains.

Snowy 2.0 spiral cases and other components at the Voith Hydro Shanghai factory.

News

OVER 25 GROUPS BENEFIT FROM SNOWY HYDRO COMMUNITY GRANTS

11/12/2023

Snowy Hydro continues its strong support for local not-for-profit organisations and community groups, with almost $150,000 distributed to 29 applicants in the second round of the 2023 community grants program.

In this round, more than 70 grant applications were received, which offered grants of up to $10,000 to support projects, local festivals, events and initiatives that benefit the local communities of the Snowy Mountains and surrounds.

The funding was distributed across the three Local Government Areas (LGAs) where our hydro regions operate. The grants support activities such as an Indigenous mentoring program; respite housing fitout, community race days, shows and large regional festivals; the creation of educational signage and murals at local museums and historical societies; along with care packages for those suffering from cancer.

The successful applications are all underpinned by Snowy Hydro’s four community commitment pillars – education and development, health and wellbeing, regional capacity building and environment.

Each year the Snowy Hydro Community Grants Program has two rounds of funding. The first round of applications for 2024 will open in February. Please ensure your application aligns with Snowy Hydro’s Community Commitment Pillars and grant selection criteria. Each round numerous applications are received and not all will be successful.

In order to be eligible for a grant, each application undergoes a diligent assessment process to maintain consistency and transparency across the program. Applicant groups must be located within the Snowy Monaro, Snowy Valleys or Towong LGAs, be a non-profit group or organisation holding an Australian Business Number (ABN) and align with Snowy Hydro’s Values.

Applications are to be submitted online via the Snowy Hydro website and the proposed project or event must respond to a community need, provide tangible benefits to the community, strengthen the community by providing opportunities that align with Snowy Hydro’s community commitment pillars, demonstrate strong governance, foster strong and sustainable partnerships within the community and return value for investment.

For more information about Snowy Hydro’s Community Grants Program visit: https://www.snowyhydro.com.au/communitygrantsprogram/

News

SNOWY 2.0 PROJECT UPDATE – NOVEMBER 2023

05/12/2023

Snowy 2.0 is entering an exciting phase as we build the largest single project that will help ensure Australia’s secure and reliable transition to renewable energy.

In this month’s project update Hamish Pryor, construction director for Snowy 2.0, provides an overview of the power station equipment manufacturing that is in full swing.

The bespoke Snowy 2.0 power station components are being fabricated with precision and skill at one of Voith Hydro’s global production facilities in Shanghai, China.

Voith Hydro is partnering with Snowy 2.0 to make the six pumped hydro units that will generate up to 2,200 megawatts of power for Australia’s electricity grid.

Voith has more than 150 years of experience in hydropower systems and its highly skilled team is developing efficient and reliable equipment that will support the 150-year design life of Snowy 2.0.

At the Shanghai factory, every item that is manufactured for the project undergoes comprehensive quality checks and testing before being shipped to Australia.

Voith’s quality, research and development team in Germany works directly with its Shanghai engineering experts on design, manufacturing processes and quality control. The team also collaborates closely with the Snowy 2.0 project team in Australia.

Among the large components being manufactured are the 13 metre-wide spiral cases and the main inlet valves – each weighing 140 tonnes and 2.2 metres in diameter – and the 31-tonne runners.

The runner is the heart of a hydro power turbine – it’s the rotating element that drives the generator to produce electrical energy. Exceptional machining and highly specialised welding skills are used to fabricate the components.

In Voith’s state-of-the-art electrical workshop more than 2,700 stator bars – which will be connected to the transformers to deliver power produced in the generators – are being manufactured.

Snowy Hydro has team members based in Shanghai to conduct quality assurance activities and monitor progress, while specialist mechanical and electrical engineers attend factory acceptance testing.

Recently, the final acceptance test for the first unit runner was completed and celebrated with a photo in the workshop.

In the Snowy Mountains in NSW, the Snowy 2.0 delivery team is also creating water intakes at the Talbingo and Tantangara reservoirs. A 28-metre diameter, 250 metre-deep surge shaft is being built at Marica and will become one of the largest operating shafts in the world.

Tunnel boring machines excavating the Snowy 2.0 tunnels are lining them with locally-made concrete segments – we’ve manufactured almost 90,000 of them at the Cooma precast factory so far. And the underground power station cavern complex is underway, with drill and blast excavation.

News

SCIENCE OF THE SNOWY SCHEME COMPETITION WINNERS

04/12/2023

Snowy Hydro is excited to announce the winners of this year’s annual Science of the Snowy Scheme Competition, from a total of 128 entries!

This year’s competition was created to increase students’ engagement with Snowy Hydro STEM experts during National Science Week 2023.

Stage 2 and 3 (year 3-6) students in the Snowy Mountains and surrounding areas were given the opportunity to take part in the competition, which included a colouring-in and a written response task. The students were asked to answer the question: Who is someone that inspires you and why?

The children were inspired and excited to use their creativity while also displaying insightfulness in their written pieces. Some students wrote about their parents or friends, others discussed their teachers, favourite singers, athletes and celebrities.

There were two judging categories to review entries across stage 2 and stage 3. This included an esteemed and diverse panel of four judges, as well as ‘Community Choice’ voting.

The ‘Judges’ Choice’ panel included the Hon Kristy McBain MP, Member for Eden-Monaro, local artist Rowena Evans, David Eisenhauer from local radio Sounds of the Mountains and Snowy Hydro mechanical engineer Sara Roder.

The competition entries were open to the public to vote for the ‘Community Choice’, where all student work was available for viewing and voting on the Snowy Hydro website.

All judging has now concluded, with a winner and runner-up selected for stage 2 and 3, under each judging category. The winners will receive a VIP catered experience at the Snowy Hydro Discovery Centre and a STEM prize package valued at $150 and the runners-up will each collect a STEM prize pack, also valued at $150 each.

Snowy Hydro are proud to announce the winners of the 2023 Science of the Snowy Scheme Competition:

Judges’ Choice – Winners

Stage 2 – Ellie Reid | St Patrick’s Parish School Cooma

Stage 3 – Clara Stefanetto | St Patrick’s Parish School Cooma

Judges’ Choice – Runners-up

Stage 2 – Emilio Brazulaitis | St Patrick’s Parish School Cooma

Stage 3 – Cormac Girling | St Patrick’s Parish School Cooma

Community Choice – Winners

Stage 2 – Bella Chorvat | Cooma Public School

Stage 3 – Lola Tonissen | Delegate Public School

Community Choice – Runners-up

Stage 2 – Hamish Walker | Delegate Public School

Stage 3 – Harlan Ingram | Delegate Public School

The winning entries will be displayed on the Snowy Hydro website and showcased at the Snowy Hydro Discovery Centre in Cooma.
Stay tuned for the 2024 Science of the Snowy Scheme Competition which will run in Term 2. For more activities, visit the Snowy Hydro Next Generation Education Academy on the Snowy Hydro website. https://www.snowyhydro.com.au/education/nextgen/

News

SNOWY 2.0 PROJECT UPDATE – OCTOBER 2023

08/11/2023

In this month’s project update, we check on tunnel excavation at Talbingo, progress at the upstream surge shaft at Marica, and we hear about the specialised drilling underway to prepare for services such as power and communications between Lobs Hole, Marica and Tantangara.

Will Binsted, Snowy 2.0 Lobs Hole Construction Manager, has been working on the project for four years and is responsible for coordinating both surface and underground works. Will, who lives locally in Tumut, liaises with technical specialists as well as designers and project engineers across the busy worksite.

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

A complex task is underway at Lobs Hole to drill boreholes for the pipes that will house power, water and fibre optic cable for communications across three of the Snowy 2.0 sites.

Horizontal directional drilling (HDD) is being used to drill 2.2km-long boreholes from Lobs Hole to Marica. The holes are initially 300 millimetres in diameter and have an elevation difference of 650 metres.

Two drilling operations are underway from top and bottom and will join up to create a continuous borehole before being enlarged to 660 millimetres in diameter.

This type of drilling is used for service lines that cross under waterways or underground structures and requires a high level of skill to maintain directional control while operating a drill string up to 1.8km long. Snowy 2.0 has contracted HDD experts Michels for the project.

The boreholes eliminate the need to construct approximately five kilometres of roads and excavate up to 60 metre cuts in the steep terrain, helping the Snowy 2.0 project team minimise environmental impacts.

HDD techniques will also be used to take services under the Snowy Mountains Highway and waterways across the plateau through to the Tantangara worksite.

At Marica, the 28 metre diameter headrace surge shaft is now one-fifth of the way to its final depth of 263 metres and we’re starting drill and blast activities. There are two hoisting buckets called kibbles with a capacity of 25 tonnes for loading out excavated rock.

Excavators break up the rock with hydraulic hammers before it’s loaded into the kibbles and craned out of the shaft. The kibbles are lowered into hoppers and the rock drops into an articulated dump truck before being removed to a temporary stockpile area.

With the shaft now more than 50 metres deep, an integrated work platform and personnel hoist is being installed to provide worker access. We’ve installed ventilation ducts to manage air quality.

At Talbingo, tunnelling of the tailrace adit is complete. TBM Lady Eileen Hudson is now excavating the tailrace tunnel alignment and heading towards the power station complex. This marks the start of the first power waterway on the Snowy 2.0 project.

Excavation is ahead of schedule, with more than 26 metres recently excavated in a single day. The tailrace tunnel is six kilometres in length, with TBM excavation continuing through to mid-2025.

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.

News

SNOWY 2.0 PROJECT – COMMUNITY INFORMATION SESSIONS IN NOVEMBER

02/11/2023

Interested in the latest updates from the Snowy 2.0 renewable energy mega project?

Snowy Hydro and Snowy 2.0 principal contractor Future Generation Joint Venture are inviting local community members to attend information sessions being held throughout the Snowy Mountains in November.

These in-person events enable locals to be updated about the project, ask questions and provide feedback. Hear from the Snowy 2.0 team about:

the recent project reset
project progress, construction activities and news
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 with a significant public focus on Snowy 2.0 in recent months, the sessions provided opportunities to find out more directly from project team members.

“We are committed to being open and transparent with you – our local communities – about our large and complex pumped-hydro project. A project of this scale and complexity has, and will, face challenges, but we continue to make solid progress across our construction and manufacturing operations.

“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 project that is generating jobs and significant investment in regional areas.

“I encourage everyone to come along to one of our community information sessions to hear the latest about Snowy 2.0, discuss any local concerns that you may have and ask questions.”

The Snowy 2.0 community information sessions in November will be held in Talbingo, Tumut, Tumbarumba, Cooma and Adaminaby.

There will be some drop-in sessions, with the chance to speak one-on-one with project team members, and events featuring a formal presentation followed by community Q&As.

Community information sessions schedule:

Date	Town and location	Time
Wednesday 8 November 2023 Wednesday 8 November 2023	Talbingo shops Tumut River Brewing Co	12.00pm-2.00pm 6.00pm-7.30pm
Thursday 9 November 2023	Near Tumbarumba IGA, The Parade	12.00pm-2.00pm
Tuesday 14 November 2023	Cooma Car Club	6.00pm-7.30pm
Wednesday 15 November 2023	Adaminaby Bowling Club	6.00pm-7.30pm

News

NEW MAJOR PARTNERSHIP – SNOWY VALLEYS SCULPTURE TRAIL

23/10/2023

Engineering meets art on a grand scale, with Snowy Hydro CEO Dennis Barnes today announcing a new major sponsorship of the Snowy Valleys Sculpture Trail (SVST).

The SVST partnership includes funding from Snowy Hydro for seven new sculptures and a school education program aimed at delivering artist-led sculpture workshops to more than 1,500 school children in the Snowy Valleys Region.

“Snowy Hydro is proud to take on the role of Major Partner of the Snowy Valleys Sculpture Trail, a partnership that underscores our long-term, ongoing commitment to the local communities we operate in,” Dennis said.

“The Snowy Valleys Sculpture Trail is celebrated for its eye-catching outdoor art installations throughout the picturesque Snowy Valleys region and our support will enhance the trail’s reach, making it more accessible and engaging for both residents and visitors alike. We hope it will also draw more tourists to the region, thereby benefiting the local economy.”

The seven new Snowy Hydro-funded sculptures will be leased and installed over the next two years adding to the 35 existing artworks located between Adelong and Tooma, including the historic towns of Batlow, Talbingo and Tumbarumba.

A key element of Snowy Hydro’s exciting partnership with SVST is the School Education Program. This program will bring artist-led sculpture workshops to 14 primary schools in the Snowy Valleys Region, along with two schools in Cooma and the Adaminaby Public School. Students will have the opportunity to immerse themselves in the world of art, creativity, and engineering through the added participation of Snowy Hydro engineers in the workshops.

Dennis emphasised the importance of the program, which aligned with Snowy Hydro’s education focus on science, technology, engineering and maths and engaging young people in activities that spark future careers.

“We believe that art and engineering go hand-in-hand, which is why they’re both core parts of our Next Generation Education Academy activities. Sculptures, like our hydroelectric projects, require a high level of engineering skill and creativity.

“By exposing students to these artist-led workshops, we hope to inspire the next generation of engineers and artists right here in our local community.”

Snowy Valleys Sculpture Trail Founding CEO & Artistic Director David Handley expressed that:“It has been a humbling privilege to work with the local communities across the Snowy Valleys to create the Snowy Valleys Sculpture Trail as one of the most important cultural projects in regional Australia.

“Snowy Hydro’s sponsorship means we are able to continue to deliver what we set out to do in providing the School Education Program for free to thousands of students across the Snowy Valleys, while building on the sculpture trail to offer visitors another reason to come back again and again to enjoy this stunning part of Australia.”

Snowy Hydro looks forward to working closely with the Snowy Valleys Sculpture Trail team and schools across the region to foster a deeper appreciation for art, engineering and innovation.

News

SNOWY 2.0 PROJECT UPDATE – SEPTEMBER 2023

05/10/2023

Following the recent announcement of the Snowy 2.0 project reset, the Snowy Hydro and Future Generation contractor teams are now a single team, working in close collaboration to achieve full commercial operation by December 2028.

The Snowy 2.0 Project Team is focused on excellent environmental outcomes while maintaining all-important safety principles. Safety is the number one priority for Snowy Hydro and core to the company’s values. High expectations for the management of all safety risks extend across the Snowy 2.0 project, without compromise.

Snowy 2.0 is critical to Australia’s transition to a low-carbon economy and when complete it will have broad-scale environmental benefits. Consistent with its responsible operation of the Snowy Scheme in Kosciuszko National Park for almost 70 years, Snowy Hydro is equally committed to minimising potential impacts from Snowy 2.0.

SAFETY PERFORMANCE

– As at September 2023, the project’s 12-month rolling TRIFR (Total Reportable Injury Frequency Rate) is 2.97, below the target of 4.0.**
– There has been a reduction in recordable and serious incidents on the project, with a focus on planning and a coordinated approach to safety management.
– Snowy 2.0 works closely with Comcare and SafeWork NSW and will continue to incorporate lessons learned and findings from the regulator into operational practices.
**Calculated per million hours worked. Total hours worked to end September 2023: >17.7 million.

Construction of Snowy 2.0 will temporarily impact less than 0.1% of the park with any short-term unavoidable impacts rehabilitated throughout the project, in accordance with environmental project approvals. This includes around $100 million provided by Snowy Hydro to the offsets program for Kosciuszko National Park. Once operational, Snowy 2.0’s footprint within the park will be only 0.01%.

ENVIRONMENTAL PERFORMANCE

– 4 independent audits of the Snowy 2.0 project undertaken since project commencement.
– 1,500 hours spent annually to proactively monitor the 163 biodiversity sites.
– More than 200 kilograms of native seed collected over three years for rehabilitation activities.
– 27 heritage site excavations and more than 35,00 indigenous artefacts salvaged and currently being documented, adding to the history of the Snowy Mountains Indigenous people.

In this month’s update from the main worksite at Lobs Hole, Project Integration Manager Paul Smith recaps progress to date with over 40 per cent of Snowy 2.0 now complete, including:

Excavation of the 2.85 kilometre main access tunnel, lined with almost 13,000 locally manufactured concrete segments.
Excavation of the 2.9 kilometre emergency, cable and ventilation tunnel.
Major upgrade of Ravine Road, the steep and winding 15 kilometre access road into Lobs Hole.
Infrastructure to support construction including the main yard workshops, worker campsites and more than 50 kilometres of access roads across three main worksites at Lobs Hole, Marica and Tantangara.

Excavation is underway of the huge 250 metre-long underground power station cavern and the tailrace tunnel, and TBM Kirsten is being modified to excavate the world-leading inclined pressure shaft. Drill and blast to create 11 cross passages and construction tunnels continues.

Above ground, there is plenty of activity across all sites. Lobs Hole Surface Works Project Manager Steve Lee helps ensure the Snowy 2.0 project is delivered in a safe and timely way, and to the quality standards and requirements of Snowy Hydro.

Surface works refers to a broad mix of activity such as haulage of spoil, maintenance of site roads, environmental controls, main yard area activity, office facilities and directional drilling, as well as the Talbingo intake build.

Latest progress on site includes Stage 2 earthworks with a recent blast covering an area of 4,500 square metres. About 10,000 cubic metres of material is being removed as the excavation of the 104-metre-high intake continues.

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. When complete, Snowy 2.0 will deliver 2,200 megawatts of dispatchable generation.

News

SNOWY HYDRO COMMUNITY GRANTS ROUND TWO – APPLICATIONS NOW OPEN

22/09/2023

Snowy Hydro is a long-time major supporter of communities and is proud to announce that the second round of the 2023 Snowy Hydro Community Grants Program is now open.

Grants of up to $10,000 are available to support projects, local festivals, events and initiatives that benefit the local communities of the Snowy Mountains and surrounds.

In the first round of Snowy Hydro’s Community Grants Program earlier this year, there were more than 45 grant applications, with a total of $143,000 of funding distributed to 20 successful applicants.

The grants are available to a varied range of community groups, events and initiatives that align with Snowy Hydro’s four community commitment pillars of education and development, health and wellbeing, regional capacity building and environment.

Snowy Hydro CEO Dennis Barnes said “Snowy is proud of our ongoing commitment to communities and is pleased to provide positive, lasting outcomes and opportunities to the regions in which we live, work and serve.”

“If you have a project, activity or event that benefits the local communities of the Snowy Mountains and surrounds, I encourage you to check your eligibility and apply!” Dennis said.

In order to be eligible for a grant, each application has to undergo a diligent assessment process to maintain consistency and transparency across the program. Before applying, please ensure your application aligns with Snowy Hydro’s Community Commitment Pillars and grant selection criteria.

The proposed project or event should respond to a community need, provide tangible benefits to the community, strengthen the community by providing opportunities, demonstrate strong governance, foster strong and sustainable partnerships within the community and return value for investment. Importantly, applicant groups must be located within the Snowy Monaro or Snowy Valleys LGAs, or Corryong, Victoria, be a non-profit group or organisation that holds an Australian Business Number (ABN) and align with Snowy Hydro’s Values. All applications are to be submitted online via the online form, found on the Snowy Hydro website.

Applications for round 2 of the Snowy Hydro Community Grants Program must be received by Friday 15 October. Following the evaluation period, applicants will be advised of the outcome by 30 November 2022.

For more information about Snowy Hydro’s Community Grants Program visit: https://www.snowyhydro.com.au/communitygrantsprogram/

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 HYDRO AND RED ENERGY SPONSOR KEEP AUSTRALIA BEAUTIFUL AWARDS

22/08/2023

Snowy Hydro and Red Energy are proud to announce the sponsorship of the Climate Change Mitigation & Adaptation category in the Keep Australia Beautiful NSW Tidy Towns & Sustainable Cities Awards.

Keep Australia Beautiful NSW is a national non-profit organisation dedicated to promoting litter prevention, environmental sustainability and community engagement.

Snowy Hydro CEO Dennis Barnes said the company’s sponsorship of the KAB NSW Tidy Towns & Sustainable Cities Awards would help increase awareness about how Snowy is supporting the transition to renewables in Australia.

“We are proud to have lived, breathed and delivered renewable energy to Australians through the mighty Snowy Scheme for generations,” Dennis said. “We are committed to continuing this legacy and enhancing it.

“The combined Red Energy and Snowy Hydro support for the KAB partnership continues our consistent commitment to sustainability and the communities in which we live and work.”

Through its programs and campaigns, Keep Australia Beautiful NSW inspires individuals and communities to take action in preserving and enhancing the natural and built environments.

The Keep Australia Beautiful NSW Tidy Towns & Sustainable Cities Awards celebrate the achievements of communities that demonstrate outstanding environmental practices, social inclusivity, and economic viability. By sponsoring the Climate Change Mitigation & Adaptation category, Snowy Hydro and Red Energy aim to encourage and motivate communities to take proactive measures towards climate resilience and a clean energy future.

This category focuses on recognising and rewarding local initiatives that address the challenges posed by climate change. These include the involvement of government and non-government organisations, community groups, businesses, schools, and individuals across NSW focusing on projects like renewable energy, enabling communities to adapt to a changing climate, and community engagement.
For more information about the Keep Australia Beautiful NSW Awards and the Climate Change Mitigation & Adaptation category, please visit KAB NSW Sustainability Awards website.