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.

Following a voluntary review of contributions paid to employees’ superannuation funds, the Snowy Hydro Group* has identified some instances of underpayment of superannuation contributions to accumulation funds. Upon finalisation of the review, the Group has undertaken immediate steps to rectify the errors including making all necessary payments to the Australian Taxation Office (ATO) .

The Group apologises unreservedly to the 3,800 former and current employees impacted by this mistake resulting in a net underpayment of $1.1 million. 

As part of the rectification, in addition to the $1.1 million, the Group has also paid the legislated 10%pa interest to the ATO, who will remit all amounts (including the 10%pa interest) to former and current impacted employees’ superannuation funds.

The review was carried out by consultancy firm Ernst & Young, and extended as far back as the Group’s available digital payroll records, from 1 July 2006 to 30 June 2021. 

The outcome of the review showed that:

• For approximately 80% of the 3,800 impacted employees, the net underpayment totalled less than $200 per individual employee over the 15-year review period; and
• Total superannuation contribution obligations over this period were $173.7M, compared with $172.6M of superannuation contributions actually paid. This equates to the Group having paid 99.3% of its superannuation contribution obligations over the review period.

Changes implemented following the review for the 2022 financial year onwards have ensured that correct superannuation contributions are paid.  

*Snowy Hydro Group (”the Group”) includes Snowy Hydro Limited, Red Energy Pty Limited, Lumo Energy Australia  Pty Ltd  and Direct Connect Australia Pty Ltd.

Frequently Asked Questions

Are former or current employees required to do anything to receive the superannuation payment?

No action is required. The Group (Snowy Hydro, Red Energy, Lumo Energy & Direct Connect Australia) has made payment and lodged all required paperwork to the Australian Taxation Office (ATO) to facilitate the payment (including interest) into superannuation funds.  

When will payments go into superannuation funds?

While the ATO’s processing times will vary, it may take up to six (6) months for the ATO to transfer the funds electronically by matching Tax File Numbers directly to superannuation funds. If an active superannuation account is not found by the ATO, payment will be placed in the ATO’s holding account. More details are available here: https://www.ato.gov.au/forms/searching-for-lost-super.

Superannuation amounts paid into superannuation funds can be found via your MyGov account.

Why can’t the Group process the payment directly into superannuation funds?

In cases where an employer is required to pay superannuation contributions relating to prior years, the amount cannot be  paid directly to superannuation funds, but is required by law to be paid to the ATO, which will then remit the amount to superannuation funds.

Will any interest on the superannuation amount be received?

The amount owing to superannuation funds is inclusive of the ATO’s set interest calculation at 10% per annum that will be credited to superannuation funds. 

Is there confidence that the amounts owing have been calculated correctly?

This review was carried out by consultancy firm Ernst & Young, which undertook an independent review of our superannuation contributions paid across the 15-year review period of 1 July 2006 to 30 June 2021.

The review was undertaken by subject matter experts within the Ernst & Young Employment Taxes team who have experience in conducting similar superannuation reviews for other large corporate groups.

The end of the  review period was 30 June 2021. Why did it take so long to complete?

Ernst & Young  confirmed that our 15-year review period is one of the most comprehensive historical analysis, in terms of years, undertaken by any of their clients. Tax record keeping requirements placed on companies in Australia require records be kept for only five (5) years and this is the typical voluntary review period undertaken by employers where an underpayment of superannuation guarantee is identified.  

The scope and complexity in reviewing superannuation contributions paid over a 15-year period required an exceptionally high level of analysis and multiple checks to ensure accuracy and completeness. 

The 15-year period required millions of rows of data to be analysed. The sheer volume of data and the intricacy of retrospective calculations made it necessary for the Group to devote considerable time and resources to ensure accuracy of the review. 

Snowy Hydro’s Kurt Wassink has been named the Riverina region’s 2023 Apprentice of the Year in the NSW Department of Training awards.

Snowy Hydro CEO Dennis Barnes congratulated Cooma local Kurt, who completed his Certificate III in Electrotechnology at TAFE NSW, on winning the prestigious award. 

“This is a wonderful achievement that underlines the quality of both our local employees and our long-standing apprentice program,” Dennis said.

“At Snowy we are committed to developing science, technology, engineering and maths (STEM) expertise among our people, and nurturing the talent we have in the Snowy Mountains region.

“We are future focused and are proud to see our apprentice program is building STEM skills not only for our business, but for the energy industry and regional Australia.”

Snowy Hydro employs up to 25 apprentices annually. In 2023 we have 25 apprentices, six of whom are females and three are Clontarf Foundation graduates. Around 10% of our full time employees are in graduate, apprenticeship and trainee programs at any one time.

Kurt, who is now a qualified Snowy Hydro Maintenance Technician – Electrician working in Khancoban at our Murray 1 and 2 hydro power stations, will progress to the next stage of the NSW Training Awards which are held in Sydney later in the year. 

These awards honour and recognise outstanding achievement in the NSW vocational education and training sector.

Hundreds of students across 18 Snowy Mountains schools will benefit from Snowy Hydro’s inaugural Local School STEM Fund program. The 2023 funding has been allocated to both primary and secondary from public and private schools to provide students with hands-on interactive experiences, challenging their creativity and critical thinking.

Through the program, Snowy Hydro has supported a varied range of science, technology, engineering and maths (STEM) initiatives, including an aquaponics project, 3D printers, a First Nations Science Camp, upgrades to equipment in science classrooms, development of a robotics club, enhancement of resources, the establishment and expansion of school programs and clubs, and the launch of various projects such as a sustainable garden and a township design. 

Snowy Hydro CEO Dennis Barnes said the collaboration with local schools will encourage and promote problem-solving skills for students, both in and out of the classroom and assist their career pathways.

“The funding is just one example of Snowy Hydro’s ongoing commitment to education and development in support of STEM, particularly among our local communities,” Dennis said. 

The real-world application of STEM allows students to interact with the subject material and develop a diverse range of skill sets. By seeing the outcomes of STEM throughout their lives and assessing the outcomes for themselves, their schools, community and surrounding environments, a unique and engaging learning space is created. 

Dennis said he was proud to announce the Local School STEM fund was “supporting schools in 10 locations, providing approximately $160,000 of funding to contribute to the growth of local students.” 

The outcomes of the funded initiatives will assist students with the understanding of sustainability, combine ancient knowledge and modern technology, build on existing STEM skills, develop critical thinking, strengthen student confidence and promote the balance of research and design. 

To further engagement and involvement with education, Snowy Hydro is committed to continuing this beneficial program. The next round of applications will open in February 2024.

For more information about Snowy Hydro’s Local School STEM Fund visit:

https://www.snowyhydro.com.au/local-school-stem-fund-2/

The second of two generator stators that will power Snowy Hydro’s Hunter Power Project has arrived onsite at Kurri Kurri after its journey from the Port of Newcastle late last night.

The 150-metre-long convoy containing the 314-tonne generator stator left the Port of Newcastle at 9pm on Saturday evening and arrived at the Kurri Kurri site at 2am on Sunday, where it was unloaded and positioned for installation.

The convoy included six prime movers, four police escort vehicles and four pilot vehicles.

The first generator was transported two weeks ago and travelled the same route to Kurri Kurri from the Mayfield berth, via Industrial Drive, Maitland Road, Newcastle Inner City Bypass and the Hunter Expressway.

The two generator stators were prepared for transportation at the port over a period of two days after arriving from Japan late last year and earlier this year.  When installed, the generators will spin from the power of the two open cycle gas turbines (OCGTs), which in turn will generate the 660 megawatts of electricity the Hunter Power Project is delivering for the National Electricity Market.

Snowy Hydro CEO Dennis Barnes said this project milestone was the result of months of meticulous planning from the Hunter Power Project team.

“Moving these two large components of the power station to our construction site required many months of work and liaison with the Port of Newcastle, the team at Mitsubishi in Japan, and local engineered transportation company Rex Andrews.

“Investment in dispatchable generators like the Hunter Power Project is vitally important as Australia transitions to renewable energy, which will ultimately benefit the environment and future generations,” Mr Barnes said.

The Hunter Power Project is expected to be operational by 2024.

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.

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.

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.

Snowy Hydro extends its deepest condolences to the family, friends and workmates of a man involved in a single vehicle crash on the Snowy Mountains Highway today.

NSW Police has confirmed that the driver of the vehicle, a Snowy 2.0 project truck, did not survive the accident.

Snowy Hydro CEO Dennis Barnes said the incident was incredibly distressing. “This is a tragic event and we are supporting our Snowy 2.0 Principal Contractor, Future Generation Joint Venture (FGJV), our teams and all those impacted in the community at this very sad and difficult time.”

The welfare of Snowy 2.0 workers is our immediate priority and project operations have ceased until the night shift on Tuesday 25 April.