Snowy Hydro 2.0 unsure when it can restart Florence after latest setback

Snowy Hydro 2.0 has been beset by issues, the latest of which sees tunnel boring machine Florence wedged and the developer said it cannot yet provide a timetable for when it can resume drilling.

Snowy Hydro has begun work on dislodging the troubled tunnel boring machine Florence but it cannot reveal when the drilling unit will resume much needed work, chief executive Dennis Barnes has admitted.

Snowy 2.0 has suffered a series of problems, including the giant tunnel boring machine, known as Florence, getting stuck underground after becoming bogged in soft ground, forcing work to stop.

In the latest blow, Snowy earlier this month said Florence was now wedged in hard rock, but Mr Barnes on Tuesday said work to free the machine has now begun.

“Recently, Florence encountered very hard and abrasive rock which coupled with a curve in the tunnel resulted in a cessation of operations due to the rock pinching the machine shield,” Mr Barnes told Senate estimates.

Snowy Hydro CEO Dennis Barnes

“The project has sought expert advice from a contractor with experience of these topics in other Australian tunnelling projects. Last week, the contractor commenced work using very high pressure water jets to remove the rock impinging on Florence’s shield. The work to remove the rock is progressing well and the estimated time for Florence’s recommencement will be determined once we have removed the rock.”

Mr Barnes said there has been no change to Snowy’s projected timetable. Snowy expects to be operational by 2027.

Still, the revelation will do little to quell criticism of the $12bn project, progress of which, or lack thereof, has become a metaphor for the country’s attempt to wean its $2.5 trillion economy off its coal dependency.

Florence has been itching forward less than 10m a day, shy of the required 15m or so needed to complete the project. Mr Barnes said the developer is confident pace will accelerate, though critics highlight that it is yet to encounter the soft, naturally occurring asbestos that will inevitably slow drilling.

If Australia is to rapidly reshape its power generation system from its reliance on coal Snowy Hydro’s massive expansion is desperately needed. Australia is installing large amounts of solar and wind, but authorities are increasingly alarmed about what will power the country when the sun is not shining or the wind is now blowing.

Labor has set an aggressive energy transition target of having renewable energy generate 82 per cent of Australia’s electricity by 2030. Developers are moving quickly to develop renewable energy generation projects, but Australia’s rollout of so-called back-up storage such as Snowy 2.0 is well behind the pace.

Such is the concern, the Australian Energy Market Operator has warned that the country faces a decade of unreliable electricity supplies unless there is a significant increase in development, particularly firming capacity.

Workers at the Snowy Hydro 2.0 project.

Coal is the dominant source of electricity in Australia, accounting for nearly two-thirds of generation throughout a typical day – and it plays a vital role in backing up renewable generation during peak demand periods when there is unfavourable weather.

AEMO now expects Australia’s coal power generation fleet to have been retired in the next decade, increasing the pressure on Snowy 2.0 to be ready on time.

By 2028, EnergyAustralia’s Yallourn coal power station – Victoria’s biggest electricity generator – will retire, while Origin Energy’s Eraring coal power plant in NSW will probably have been mothballed for years by then.

To replace coal, Australia will need a substantial increase in firming capacity.

Batteries are a possible solution, but they do not have the scale of Snowy Hydro 2.0, which is so large that once complete it will be able to provide enough electricity to run large swathes of the grid on its own for about a week.

Australia cannot easily build alternative pumped hydro projects, with few available sites available – even less with the scale of Snowy Hydro. Without Snowy, Australia could face electricity price volatility.

Florence the Snowy Hydro tunnel boring machine.