Snowy Hydro 2.0 delays tunnelling restart amid worker safety unrest

The decision means further delays to a project already behind schedule, but Snowy Hydro can ill-afford to lose the support of its 700-strong workforce.

Snowy Hydro has delayed the resumption of essential underground work despite a partial lifting of orders banning tunnelling as the $12bn renewable energy project attempts to allay worker concerns about safety.

The decision will risk further delays to a project already behind schedule and one that Australia desperately needs if it is to deliver its energy transition on-time. But it underscores the concern within Snowy about losing the support of its 700-strong workforce.

Snowy has been beset by safety issues; in January, workers walked off the job over the project’s refuge chambers, which are last-resort areas where trapped workers can shelter in the event that primary safety systems are compromised and evacuation routes blocked.

Late last month, underground work was halted after an industrial-sized ventilation fan malfunctioned, sending metal shrapnel flying.

SafeWork NSW issued six prohibition notices to cease the use of unsafe ventilation fans as inspections showed others in various states of disrepair, including missing and loose bolts.

While some orders have been lifted, Snowy has elected to hold off resuming work in those areas until it has convened with staff.

Workplace safety has emerged as a critical issue for the energy infrastructure project.

Snowy in February demanded changes from Italian developer WeBuild, but that process is unresolved. The Australian Workers’ Union has sought change.

“The AWU and our members have absolutely no confidence in the project’s ability to manage safety, it is time for some changes at all levels of management of this project, including with the client Snowy Hydro,” the AWU said in a statement.

Snowy has yet to confirm who will lead the independent review and audit into safety at the project, and WeBuild may resist bowing to union pressure.

The Australian understands Snowy is in the midst of talks over a new wage deal.

Snowy 2.0 is scheduled to be online by 2028 and has purchased a fourth tunnel boring machine, described by chief executive Dennis Barnes as an insurance measure.

Snowy Hydro CEO Dennis Barnes at Tantangara.

Mr Barnes said the $75m equipment cost was coming from a contingency amount baked into the project’s revised $12bn budget unveiled earlier this year. The initial plan required another tunnel boring machine known as Florence to dig the tunnel, with room for assistance. That would see Florence reach the most difficult terrain around 2027, but Mr Barnes said the new machine would allow two to simultaneously work on the 17km tunnel.

Florence has encountered a series of problems and its progress, or lack thereof, has cast doubts over Snowy meeting its 2028 target.

The 2000-megawatt expansion of the pumped hydro storage project in NSW has been beset by blow-outs.

Snowy has blamed the mobilisation and resourcing implications of the pandemic, global supply chain disruption and inflation ­affecting the cost and availability of a skilled workforce, as well as materials and shipping.

It was initially projected to cost about $2bn and be completed in 2021, before that was revised to almost $6bn, and then $12bn.

Contractor WeBuild took on failed contractor Clough’s role in their Snowy joint venture after the West Australian engineering company collapsed in December 2022.

Still, Snowy shapes as the economy’s best hope to run a grid predominantly powered by renewables. At completion, it will use cheap renewable energy to push water uphill, and when the sun sets it will be able to release the water downhill, powering turbines and producing power.

Originally published as Snowy Hydro 2.0 delays tunnelling restart amid worker safety unrest