REPORTER: Snowy 2.0 was sold as nation building
REPORTER: Snowy 2.0 was sold for a low-carbon future.
MALCOLM TURNBULL: It's a revolution.
It's exciting from a technical and engineering point of view,
but it's absolutely critical to save the planet from being fried.
A mega project that could power up to 3 million homes
A mega project that could power for an entire week.
MAN: We are building something for an entire week.
MAN: We are building something which is
an incredibly valuable asset to the energy transition.
But this pumped hydro scheme has been afflicted by long delays
and massive cost blow-outs.
I knew it was just going to be an absolute dog of a project.
MAN: They were making outlandish claims about when the scheme
was going to be finished, and they still are.
So, this is where you've had a lot of the trouble, is it?
Well, further down is where we had the sinkhole.
TURNBULL: Mistakes happen, and that was an expensive one.
MAN: They got the costs wrong,
the ground conditions, the time, the schedule.
And I think the way they levelled with the public,
And I think the way they they've got that wrong too.
Deep in the Snowy Mountains, a giant tunnel-boring machine is stuck.
Deep in the Snowy Mountains, a giant The perfect illustration
of how this so-called "nation-building project" The perfect illustration
of how this so-called "nation-building project"
has gone so horribly wrong.
On this episode of Four Corners, we go beyond the corporate spin
to reveal the inside story of Snowy 2.0
and how repeated warnings of problems that lay ahead were ignored.
Snowy 2.0 is being built in rugged country
Snowy 2.0 is being built deep in the Kosciuszko National Park.
The site can only be accessed via steep and winding roads,
The site can only be accessed with permission from Snowy Hydro.
Hi there. Hey. G'day.
How are you doing? Good.
Welcome to one of the world's biggest batteries.
Dennis Barnes became Snowy Hydro chief executive in February,
inheriting a project plagued by problems.
inheriting a project How do you feel looking down on this?
I feel incredibly proud of the team
who are delivering this great project.
It was the new CEO's job to announce Snowy 2.0 is
It was the new CEO's job way behind and well over budget.
It will now cost $12 billion, way behind and well over budget.
It will now cost $12 billion, six times the initial estimate.
For this, Snowy has copped sustained criticism.
So, today Dennis Barnes is walking us through what HAS been built.
ECVT - emergency cabling ventilation.
ECVT - emergency And it goes for about 2.9km.
This is the tunnel which equipment and people and services
will come in and out of.
So, this one will never have water in it,
but imagine more than 20km of tunnels this size full of water.
So, lots of people have said really harsh things about Snowy 2.0,
So, lots of people have said that it will never be completed.
What do you say to them?
Well, I say I'm here to complete the project. What do you say to them?
Well, I say I'm here to complete the project.
We're 40% of the way in. We've learnt a lot.
We've now got a contract reset, a way-of-working reset,
which I believe will deliver.
And, above all else, it's incredibly important to the energy transition.
And, in addition, it's a good investment.
And, in addition, It will be a good investment.
We're about to go on board
a massive tunnel-boring machine called Florence.
It's at the very heart of Snowy's problems.
MAN: Right, team, so, we're here at the adit for TBM Florence,
and in a moment we'll head down into the actual tunnel
and we'll be able to get up on Florence today.
and we'll be able to get We're not operating today.
Florence has barely moved in 19 months.
At the entrance to the tunnel, where the machine is stuck,
sits a small statue of Saint Barbara, the patron saint of tunnelling.
She's charged with protecting workers and watching over projects.
Snowy will be hoping for her good grace.
DENNIS BARNES: We encountered soft ground before we were expecting to.
That soft ground stopped Florence...
Just watch the step hazards.
..and created a world of pain Just watch the step hazards.
..and created a world of pain for Dennis Barnes.
Back in May, he faced Senate estimates.
Thank you for appearing again today. Back in May, he faced Senate estimates.
Thank you for appearing again today.
So, Florence is now acknowledged to be bogged.
So, Florence is now When will it be unbogged?
I expect in weeks, not months.
As soon as the slurry plant I expect in weeks, not months.
As soon as the slurry plant is operating, we'll push forward.
I was wrong.
There's, you know, mistakes that we all make,
There's, you know, and I was wrong to, you know...
Perhaps somewhat naive and optimistic.
And, you know, I'm learning as I go, as you would expect.
We're actually on tunnel-boring machine Florence,
We're actually on tunnel-boring 150m into the tunnel,
and we're heading towards the front of the tunnel-boring machine.
What are these steel rims here?
So, they're stabilising the...
..cement segments, because we know at this point,
the ground is a little bit wet and can be a little bit unstable.
But these are essentially to keep the water back
and to help monitor the movement.
Further down is where we had the sinkhole.
We're about 30m underground.
Just above us is a sinkhole
that's caused so much grief for this project.
We send up the drone to have a look.
The sinkhole is a scar on the landscape,
spilling out of Snowy's construction area
and deeper into the Kosciuszko National Park.
MAN: It represents a complete failure
on behalf of the contractors to construct a tunnel
without damaging the environment around them. on behalf of the contractors to construct a tunnel
without damaging the environment around them.
It's a complete failure of their systems and processes.
The dream for what would become Snowy 2.0 unfolded at a Cooma pub
in early 2017.
An energy crisis had hit parts of the country
and the federal government was in urgent need of a solution.
and the federal government was There you go.
At the Alpine Hotel, a place steeped in Snowy Hydro history,
two executives sketched out a plan.
So, it was just a normal weekday evening.
We had a couple of Snowy Hydro execs in having a beer in the corner,
and the plan for Snowy 2.0 was just drawn out on a coaster
at the corner table over a beer.
Theirs was not a new idea.
They dusted off a blueprint from the 1960s
to extend the original Snowy Hydro scheme
and create what would effectively be a giant battery
and create what would to store renewable energy.
Pub regular and Snowy Hydro enthusiast Peter Wolfe
Pub regular and Snowy Hydro sketches out what happened.
The engineer wanted to explain his idea,
The engineer wanted to based on the early scheme,
and how to take advantage of pumping up a mass of water uphill based on the early scheme,
and how to take advantage of pumping up a mass of water uphill
and storing it, and dropping it down pumping up a mass of water uphill
and storing it, and dropping it down
when they needed peak power in Sydney.
It was just the type of plan then Prime Minister Malcolm Turnbull
It was just the type of plan was looking for.
Well, what happened was I... was looking for.
Well, what happened was I...
Going back to 2016, there was a big blackout in South Australia,
and that really got me thinking about our energy system.
I did a lot of reading and research over that summer of 2016-17,
and it became very obvious to me that we needed to prioritise
long-duration energy storage, which meant pumped hydro.
FRAN KELLY: Well, it's the devilishly difficult juggling act
that's dominated political debate this year -
how to reduce carbon emissions, guarantee energy security
and put a brake on rising power prices.
This morning, the Prime Minister will announce another possible fix.
Malcolm Turnbull christened it Snowy 2.0,
a pumped hydro scheme with a vast network of tunnels
a pumped hydro scheme with and a power station 800m underground
that would provide deep storage for renewable energy.
It's going to be the,
you know, the supercharging of this Snowy Hydro scheme.
And in some ways fully realising the vision of the founders.
I'll come around this way.
OK, sure.
OK. Hey, Em.
I'm good. MAN: How's the tour, Prime Minister?
Oh, fantastic. Pretty spectacular.
It was really spectacular.
Hello. WOMAN: Hi, PM. How are you?
I just shook my head and I thought, Hello. WOMAN: Hi, PM. How are you?
I just shook my head and I thought,
"This is going to be the most expensive photo opportunity
"in Australia's history."
Snowy Hydro. What an extraordinary achievement.
These are big dreams in these mountains.
These are big dreams Real courage.
A belief in the future.
(SHUTTERS CLICK RAPIDLY)
I am a nation-building prime minister, believe me,
and this is a nation-building project.
See you soon. Thank you. Thanks a lot.
"Nation building" are the two most economically damaging words
in the English language.
It's dreadful.
Yeah, well, I mean, just neglecting infrastructure
is pretty destructive too.
So, there's always plenty of knockers that have got a reason.
There's no critically important piece of infrastructure
that somebody has not tried to stop being built.
And if all of the knockers had won, where would we be?
The plan was for a hydroelectric scheme using two existing reservoirs.
From the lower Talbingo Reservoir, water would be pumped uphill
using surplus solar and wind power to Tantangara.
And then, when electricity demand was at its highest,
typically in the early evening, that water could be released.
Using gravity, it would flow downhill through turbines
and produce electricity.
Snowy 2.0 is an engineer's dream.
It's a phenomenally large project.
There's 27km of raceway, of tunnels It's a phenomenally large project.
There's 27km of raceway, of tunnels connecting the two dams together,
40km in total.
The tunnelling is phenomenally ambitious.
Even the caverns - there are two caverns that have to be drilled,
drilled out or blasted out underground, 800m below the surface.
Each of these caverns are about the same size as the Titanic.
Each of these caverns are about This is a huge project.
It didn't stack up. This is a huge project.
It didn't stack up.
Simple as that. It couldn't stack up.
Simple as that. A scheme with 27km of tunnels
can never stack up, economically or technically.
Simple as that.
Good afternoon. (LAUGHTER)
OK. Alright, well, look, it's great to be here in the Snowy Mountains.
A feasibility study was commissioned
to determine if Snowy 2.0 was technically and financially viable.
Back then, the CEO of Snowy Hydro was Paul Broad.
What Paul is doing is examining all of the geology all along the route
of the tunnelling that will be undertaken
to connect the Tantangara Reservoir to the Talbingo Reservoir.
Despite the many unknowns, the political will was apparent.
Well, how long will it take to build this, Paul?
Well, how long will it take Well, best estimates...
We'll get him...get him on the sticky paper now.
Yeah, well, I don't wanna get the cart before the horse.
The feasibility study will tell us that.
But, you know, a six-years type thing, you know.
And it depends very much on the geology.
And we'll firm that up in the next month or two.
Well, I think it was pretty telling, wasn't it?
Energy market analyst Danny Price
once advised Malcolm Turnbull Energy market analyst Danny Price
once advised Malcolm Turnbull on climate change.
The decision had clearly already been made on this project.
Paul Broad didn't know what to say.
He had to respond quickly, said, "Let's not get ahead of ourselves."
You put Paul Broad on the spot there, though, didn't you -
when you said to him, "How long will it take to build,"
when you said to him, "How even before the feasibility study?
Well, he could have said, "I don't know."
He could have said, "I don't know."
As a prime minister, asking the CEO of a company,
"How long is it going to take to build"
gave the impression that it was already a done deal, did it not?
I don't... No, it did not. It did not.
I don't... No, it did not. The deal is done when it is done,
and that is when the decision to invest is made.
Obviously, I thought it was a great opportunity
and I was hoping that it would all stack up.
and I was hoping that But the work was being done.
We were spending millions of dollars on, you know,
top engineers and economists and so forth to analyse it.
Snowy 2.0 is an ambitious project in unknown terrain,
just like the original scheme.
The Snowy Mountains Engineering Corp, or SMEC,
emerged from the Snowy Hydro scheme as a respected voice in the industry.
It would be hired to assess the feasibility of Snowy 2.0.
These guys bring lots of experience, you know?
And if you're telling me all the experience
of building hydros around the world, so it's very, very good.
It makes me sleep better at night.
Excellent. Well, you're back where you started.
Yeah.
SMEC is an organisation that has something to say about this Yeah.
SMEC is an organisation that has something to say about this
SMEC is an organisation that people should listen to.
I mean, it's their... that people should listen to.
I mean, it's their... it's their origin.
I mean, it's their... It's where they started from,
the Snowy Mountains Engineering Corporation.
So they grew out of the Snowy Scheme.
They knew what they were talking about.
They knew what they were They should have been listened to.
We've learned some within SMEC were worried about the geology.
Over the last two months,
we've spoken to more than a dozen people
who have worked on Snowy 2.0.
One revealed SMEC wanted more drilling
One revealed SMEC wanted to understand the complex geology.
It feared a tunnel boring to understand the complex geology.
It feared a tunnel boring machine might get stuck.
Snowy Hydro rejected that advice.
I know from the talk in the industry and people I know and respect
that SMEC had some pretty strong views
that there wasn't enough information available
on the geological integrity of the tunnel path,
and there wasn't enough testing done
to say anything solid about the costs.
to say anything solid And if that's the case,
then they've been proved And if that's the case,
then they've been proved exactly right,
as evidenced by the tunnelling machine that is stuck.
BARTLETT: Yes, they should have done more drilling.
Whether it could ever have done sufficient drilling, I doubt,
and I can understand that the engineers are saying,
"We must have more geological information."
It's just reckless to proceed without that.
Simon Bartlett is an energy industry veteran
who helped plan Queensland's Wivenhoe pumped hydro scheme.
For an underground scheme, the geology is absolutely critical.
So you must understand the maximum possible
of the rock conditions you're going through.
So I'm told that SMEC was very worried about the geology
and that they asked Snowy to do more drilling, and that was denied.
As a project developer, and that they asked Snowy to do more drilling, and that was denied.
As a project developer,
you think about how you're gonna handle a risk.
Do you do more work to understand the risk,
or do you allow contingencies in your project to handle that
or do you allow contingencies if it occurs?
And I'm sure at the time,
there would have been a very And I'm sure at the time,
there would have been a very balanced decision made to go,
"No, we're not going to do more geotech. We've got advice.
"We understand the advice, but we're gonna take a different decision."
SMEC told Four Corners there will always be unknowns
when undertaking complex tunnelling projects
and ultimately, it was about weighing up the cost when undertaking complex tunnelling projects
and ultimately, it was about weighing up the cost
of more investigation work it was about weighing up the cost
of more investigation work
against the value of additional data.
In late 2017, SMEC concluded Snowy 2.0 was feasible,
but would cost between $3.8 and $4.5 billion.
That was double the original $2 billion forecast.
Now, that was obviously an estimate.
You could call it a guesstimate, but it was very early.
How damaging was it that that figure was only damaging?
It's only damaging because you keep harping on it,
because there was no decision based on the $2 billion.
The feasibility study predicted first power would be generated
The feasibility study predicted in late 2024.
Was it underdone?
No.
Well, I mean, no, it was a very thorough piece of work.
And I think the economics of Snowy 2.0,
even at the higher construction cost, is very, very sound,
as the government has said, as Snowy Hydro said.
REPORTER: Federal government's given the green light
to the Renewable Energy Snowy 2.0 project.
By this time Malcolm Turnbull had been removed as Prime Minister.
It was now Scott Morrison's photo opportunity.
(CAMERAS CLICKING)
MAN: Lovely. This way?
Yep. And just walk straight across. Thank you.
This is what vision looks like.
It doesn't get more fair dinkum than this.
This is fair dinkum, 100%.
This project stacks up.
I mean, we absolutely scrutinised it thoroughly and with a microscope.
The project chugged along, and it certainly had a lot I mean, we absolutely scrutinised it thoroughly and with a microscope.
The project chugged along, and it certainly had a lot
of political pressure, and the bureaucracy was pushing
as hard as it could to get the project going.
It would be Scott Morrison who gave the project its final approval.
OK. Thumbs up for Snowy.
Excellent. How good's butter chicken?
Snowy 2.0 was now set to go.
It's pretty clear that Snowy hadn't done
the detailed geotechnical investigations to fully characterise
the detailed geotechnical the very challenging
and changeable geologic the very challenging
and changeable geologic conditions along the route.
The project hinged on three giant tunnel-boring machines.
They would excavate the tunnels connecting the two reservoirs
They would excavate the tunnels and the power station.
One of the tunnel-boring machines was Florence.
(UPBEAT CORPORATE ADVERTISING MUSIC)
We have commissioned and celebrated our third TBM, Florence,
with lots of community members watching on.
You know, in life you dare to dream.
You dare to think about the world You know, in life you dare to dream.
You dare to think about the world as it might be, and you think
about the kids and the world that they're going to inherit.
The then-CEO claimed to have hired the world's best tunnellers
as part of a joint venture known as Future Generation, or FG.
We scoured the world to get the FG guys to come here and build this,
build this incredibly complex engineering challenge.
But trouble would lie ahead for Florence.
Even before the first rock was cut, there was another warning.
Four Corners has been told in the weeks
before Florence was commissioned,
workers drilled ahead to explore before Florence was commissioned,
workers drilled ahead to explore the tunnel's planned route.
At about 100m in, they hit soft ground and water that gushed
At about 100m in, they hit soft thousands of litres.
They knew that it was going to be soft.
They were expecting water in that section
and so they know what's ahead of them.
They drill regularly ahead of the TBMs so they know
there shouldn't really be any surprises.
It's pretty much consistent theme of the project.
They tried to get the TBMs running.
Cutting rock, tunnel activities They tried to get the TBMs running.
Cutting rock, tunnel activities are the priority.
Always have been since day one unfortunately.
Had the cart before the horse a lot of the time.
Dennis Barnes was not in charge when Florence was commissioned,
but is now responsible for its progress.
What I'm told is that a probe drill was put through before Florence
was launched, and that you knew that there was water,
you knew the ground was soft, but you launched it anyway.
Yeah, we know that in parts of all of our tunnels, you knew the ground was soft, but you launched it anyway.
Yeah, we know that in parts of all of our tunnels,
we will find soft ground and we will find wet ground.
The extent of that softness and wetness, you don't really know
until you push forward.
So you did know the ground was soft.
Oh, yeah. We knew that they were soft.
We just didn't know it was that soft.
So, sorry. You have said that it was unexpected soft ground.
Now you're saying that it was softer than you thought?
Yeah. Unexpected to that degree.
I think it's just Yeah. Unexpected to that degree.
I think it's just a convenient excuse, to be honest.
They would have known exactly what was ahead of them.
They would have known exactly And if they didn't, they should.
Because if they're trying And if they didn't, they should.
Because if they're trying to excavate ground that's unknown,
they're putting our members and their workers' lives at risk,
to be honest.
They've got to know what's ahead of them.
Around eight weeks after tunnelling began,
Florence hit soft ground and was effectively stalled.
Those working on the project have told Four Corners
Those working on the project they'd push forward 50cm,
then spend the next week clearing out all the mud and water
from around the tunnel-boring machine.
We've obtained pictures showing the machine flooded with water.
At the time, Snowy Hydro told the public nothing
At the time, Snowy Hydro about these problems.
Rumours were permeating that, from the project,
that the tunnel-boring machine was stuck.
Snowy countered with a media release saying Florence was on the move.
Snowy countered with a media release Just before Christmas,
it said "a surface depression had emerged,"
it said "a surface depression but tunnelling was continuing safely.
Excavation at the headrace tunnel is being carried out by TBM Florence,
which is progressing steadily through poor ground conditions.
I think it's pretty clear at this point
that Snowy has misled the public on a number of occasions.
They've given us reason to believe that things are on track
when we later found out that they're not.
So I've come for a bit of a walk to come and see what's happening
up here at the top of the Snowy 2.0 scheme.
One of the worst kept secrets in the country is that Florence
is having a lot of trouble.
Energy investor and climate activist Simon Holmes a Court
was not convinced by the corporate spin.
And in the background you can see behind me a hole has opened up,
a sinkhole, if you like, caused by a cave-in
where Florence has grabbed the material
at the front of the machine,
spattered out the back at the front of the machine,
spattered out the back and caused a sinkhole above.
Around the same time, Snowy finally acknowledged that Florence
Around the same time, Snowy finally was not moving.
The TBM has been paused
until about 10 to 15m of weak material in front of it
until about 10 to 15m of is stabilised.
It had only gone 150m.
What do you think of the language? They said that Florence was paused.
Well, you know, it's...
I mean, well, it paused.
I mean, like, it's just... I mean, well, it paused.
I mean, like, it's just... it's...it's calculated
to create the impression that it's not as serious a problem as it...
to create the impression that it's ..as it obviously was.
So I've always taken the view that you build trust
with truth and transparency.
So you've got to tell the truth about what's going on,
but you've got to be transparent about it.
You can't expect people just to take your word for it.
It's a bit like the ad on TV, right,
where the four wheel drive's bogged in they're saying parked.
where the four wheel drive's bogged It's not paused. It's bogged.
You ain't going anywhere.
The TBM number 3S1221 has a total length of 142m.
We've learnt Florence's problems were made worse
We've learnt Florence's because it lacked vital equipment.
Ground conditions are complex...
To push through soft ground it needed what's known as a slurry system
To push through soft ground it needed to help shore up the path ahead.
..slurry piping system for safe material transfer.
So was the actual slurry machine on site?
The slurry machine was not on site and not available to be run
The slurry machine was not on site in slurry mode.
The experts we have on the project, who have got experience in slurry mode.
The experts we have on the project, who have got experience
of tunnelling world wide,
will have made a decision at the time
to operate in a particular mode,
which obviously hasn't turned out to operate in a particular mode,
which obviously hasn't turned out to have been the best decision.
Clearly it's an oversight. which obviously hasn't turned out to have been the best decision.
Clearly it's an oversight.
If you're going... It's wrong.
I mean, if you're going to be dealing with soft ground,
that needs to be slurried and you don't have the slurry kit,
that needs to be slurried you've screwed up, haven't you?
Four Corners has obtained a copy of a construction method statement,
a guide for operating Florence.
It recommended a slurry system be in place for early tunnelling,
It recommended a slurry system subject to ground conditions.
Why was that not done?
As you can imagine, on a project of this complexity,
there would be thousands of pages of instructions and guidelines
on how to address what we're trying to achieve.
And of course, as you learn more and as you develop the project,
And of course, as you learn that may change.
That was before my time.
So I'm not familiar with the decision on the day,
So I'm not familiar with but as I understand it,
the machine was able to move forward with the perceived level of softness
the machine was able to move forward that we had without slurry mode,
and obviously that's proven to be incorrect.
The contractor, Future Generation,
said drilling in advance of the tunnel-boring machine
confirmed its operation method was appropriate.
It said every measure was taken to ensure the tunnel was excavated
It said every measure was taken with diligence, care
and in the safest possible working environment.
Florence didn't sink.
Florence was a little bit unstable, very briefly.
How close did you go to losing that machine?
Oh, relatively close.
I mean, I'm not going to hide the fact that for a period there,
I mean, I'm not going to hide it could have got worse.
But, absolutely, we've done the work now.
We've stabilised the machine, we've stabilised the ground.
Until now, the price tag for Florence's troubles
hasn't been revealed.
We've learnt the cost to the project is $2 billion,
and this has been confirmed by Snowy Hydro.
You can't live your life backwards, and mistakes happen,
You can't live your life backwards, and that was an expensive one.
There's no question and that was an expensive one.
There's no question that a significant
but nowhere near a majority of this blow-out in cost
is due to mistakes that were made by the contractor,
or whoever was directing the contractor.
Alrighty, here we go.
Are you ready, sweetie? (LAUGHTER)
Alright, I'm going to start. OK, one...
Alright, I'm going to start. Ready?
One, two, three.
Go!
Good girl. Go!
Good girl. Good girl.
The main construction contractor for Snowy 2.0
also worked on the Airport Link tunnel in Perth,
which suffered a number of serious incidents.
CALLINAN: I met with the Snowy Hydro executives
long before the contract was awarded and suggested
they should do some research into the project in Perth
and have a look at their performance before they even considered them.
Regardless of the price they put in, they should have been considered
Regardless of the price they put in, on their safety experience alone.
REPORTER: The 26-year-old man
was doing maintenance work REPORTER: The 26-year-old man
was doing maintenance work 20m underground
when he was hit in the head by a flailing compressed air hose
when he was hit in the head by that had disconnected from a pipe.
(HORN HONKS)
MAN: All his teeth were knocked out.
From what I was told, nearly every bone in his face was broken.
And the most damaging was to his head. From what I was told, nearly every bone in his face was broken.
And the most damaging was to his head.
And the most damaging So, it resulted in brain damage.
So, that resulted into a brain bleed.
Terry Butterworth says he only heard about his son's accident
Terry Butterworth says he only via a friend.
There was no communication from the company whatsoever
while we were in New Zealand, nothing.
I strongly, yeah...
I strongly emphasise that.
There was no mention, no call, no anything from the company.
They said that...they emphasised they tried to get hold of me.
My response was what I've just told you.
My response was what You know, didn't try very hard.
ALL: (CHANT) Shame, Salini, shame!
Shame, Salini, shame! ALL: (CHANT) Shame, Salini, shame!
Shame, Salini, shame! Shame, Salini, shame!
Unions condemned the contractor over the safety incidents.
MAN: Workers' rights are under attack! What do we do?!
ALL: Stand up, fight back!
WorkSafe WA issued three directions to stop work
WorkSafe WA issued three directions and 22 improvement notices
during the tunnel's and 22 improvement notices
during the tunnel's six-year construction period.
during the tunnel's ..fight back!
The rules are broken! Change the rules!
The contractor, Salini Impregilo, has since been rebranded as Webuild.
Change the rules! The rules are broken!
Change the rules! Change the rules!
Despite their problems in Perth, Webuild was hired for Snowy 2.0.
So, I'm not going to comment on WeBuild globally
So, I'm not going to comment or WeBuild in Perth.
What I can say is that we see competent people with good machines,
and we've already drilled more than six kilometres.
Competence is not getting Florence stuck, is it?
Well, Florence, as I said, you know, encountered some challenges.
We absolutely have learnt some things
We absolutely have both as Snowy and as WeBuild.
And I have confidence that when she restarts,
And I have confidence they'll move along at pace.
The original Snowy Scheme is a proud part of Australia's history.
We played a key part in the original Snowy scheme
and we were all very excited about Snowy 2.0.
The AWU now has more than 300 members at Snowy 2.0,
doing everything from digging tunnels to working in the kitchens.
Our multiculturalism is all attributed back
to these mountains,
but this project won't be remembered with the same the same fondness
but this project won't be remembered for the workers here.
Safety is one of the union's biggest concerns.
We've obtained this footage showing toxic gas filling the tunnel
where Florence is stuck.
It was the start of night shift,
and workers were trying to reinforce the ground ahead.
My understanding is that the gas was a result of a chemical reaction
with some products they were putting into the grout My understanding is that the gas was a result of a chemical reaction
with some products they were putting into the grout
to try and stabilise the ground around Florence.
That chemical reaction released the gas.
Our organiser contacted the safety management on the Saturday night
and was told that it wasn't a hazardous substance.
and was told that it wasn't Turns out it was.
SafeWork New South Wales said the gas posed a serious imminent risk
SafeWork New South Wales said to workers' health.
It added there were inadequate to workers' health.
It added there were inadequate measures implemented
to prevent exposure to a harmful substance.
The tunnel was evacuated. Very hazardous situation.
The work was stopped in that area for a week.
I think it's one of the only times where we've actually had a proper
emergency that I'm aware of,
where the tunnel had to be evacuated.
So, that's still obviously under investigation
So, that's still obviously because it's reasonably recent.
So, we don't know what the causes because it's reasonably recent.
So, we don't know what the causes of that leak would have been.
So, we don't know what the causes Appropriate action taken.
Stop work, think about what is the risk, close the plant down.
So, very supportive that that action was taken.
So, very supportive that You say appropriate action was taken,
it took 10 days to shut the project down.
Again, I'm not familiar with that one in the detail,
because the investigation is still ongoing.
We've asked the New South Wales regulator how many safety breaches
there have been at Snowy 2.0.
It refused to provide the numbers,
saying it may affect the contractor's reputation.
Generation operations. Mark speaking.
This is where Snowy Hydro monitors its existing network,
weather data and prices.
DENNIS BARNES: So, it's really the nerve centre of Snowy Hydro.
Snowy is one of the biggest generators in the market,
has some of the most flexible and dispatchable plant.
So, we're often there when other generators are not there.
So, we, in some ways, balance the market.
The electricity currently generated by Snowy Hydro
feeds into the grid via existing transmission lines.
But Snowy 2.0 will need far more.
A vast new network would cut through prime farmland.
It's yet another problem for the project.
BARTLETT: I spent half my career as the chief operating officer
of power in Queensland, so I know a lot about transmission. BARTLETT: I spent half my career as the chief operating officer
of power in Queensland, so I know a lot about transmission.
I know the anxiety it can cause people who are affected
by this...proposals to build this on their property.
(HORNS HONK INCESSANTLY)
MAN: (OVER LOUDHAILER) No towers!
Protect our land!
No towers! Protect our land!
(HORNS HONK)
Strong community opposition to giant new transmission lines
could mean more delays for Snowy 2.0.
(MAGPIE WARBLES)
The transmission network will slice through this family farm
in the New South Wales Southern Tablelands.
WOMAN: So, we're impacted with 3.1km of transmission line.
Eight towers. They're 75m high.
I'm just gutted.
It's soul destroying
because we have put in so much work,
love and care to our land care.
Those group of trees will be wiped out.
Those group of trees The 70m easement will clear them.
Oh, this wind!
Not good.
Well, we're replanting native plant stocks and trees
Well, we're replanting that have been here originally.
And we're quite proud to be able to care for land.
Uh, that's the one I want.
Nan Betts fears the planned transmission lines for Snowy 2.0
will undo the work she's put into regeneration.
It makes me feel anxious for the next generation.
I just feel ashamed.
Progress without care of...foresight.
They just had no foresight, no.
And I know they're all anxious to get power,
And I know they're all anxious but there are other ways.
We're not against renewables, and we have,
as landholders, have said, we have to look at other options
because we're carrying the brunt of the extreme distances
to connect Snowy 2.0 to city populations.
If it's coming through, please listen to us
because we are part of this solution.
Please put it underground, as our best compromise.
Nobody wants it. Nobody's asked for it.
But this is the best compromise.
The New South Wales Government has ruled out
putting the powerlines underground, claiming it's too expensive.
There's plenty riding on Snowy 2.0 and the promise to keep the lights on
as Australia moves away from fossil fuels.
We need a huge amount of long-duration storage.
No-one in their right mind argues with that, you know,
other than the people that want to keep burning coal, of course.
Snowy 2.0 is really the only opportunity
to have a storage of that scale in Australia.
What's your response to Malcolm Turnbull saying
What's your response to we need the deep storage?
He just has it wrong.
He's possibly been misled, hasn't thought it through.
You don't need deep storage when you have other options.
So, you need energy storage,
but there are much better ways for energy storage nowadays.
Batteries - they're making large-scale batteries
that can store electricity for eight hours.
It's way cheaper, but you think about it.
You can deliver batteries in about two to three years,
You can deliver batteries not 15, 20 years.
You don't have not 15, 20 years.
You don't have any construction risks
You don't have like what we're confronting here.
Much more environmentally...
None of this environmental damage.
The challenges ahead for Snowy 2.0 are immense.
Florence is still not moving,
awaiting New South Wales Government approval to fix the sinkhole.
awaiting New South Wales Government And there are still many unknowns.
What are the ground conditions like ahead of Florence?
They're going to encounter these poor conditions
again and again and again.
Those places where again and again and again.
Those places where it's similar and worse,
I think there's quite a high likelihood
that we're going to see the same thing happen again.
We're operating in quite a geologically diverse area,
probably the most diverse in Australia.
But that's why we've got some of the best contractors in the world.
A lot of the equipment is ready for that.
But that's the one thing that you would say
is a risk to the project going forward.
Snowy Hydro has, I believe, misled the public on many occasions
with this project, and it's a bit much to ask the public
with this project, and to trust everything at face value.
Now, that might be fair or might be unfair,
but what we really need to trust these deadlines and costs
is an independent expert to come in and monitor the project
on an ongoing basis, to tell us that it's both on track
and on budget, and that the contract is being executed properly.
Captions by Red Bee Media
Copyright Australian Broadcasting Corporation