SNOWY HYDRO has today announced they have approved the Snowy 2.0 feasibility study. They will continue with ongoing work in 2018, including additional drilling, tenders, finalising funding and rigorous environmental and planning approval processes before a final investment decision.
Snowy 2.0 is a new project that will see a new 2000 megawatt power station built 1km underground that has capabilities to pump water back uphill to the storage dam of Tantangara and be reused again for power.
Snowy 2.0 is a pumped-hydro expansion of the Snowy Scheme which will supercharge existing generation and large-scale storage capabilities.
Here is a media release from Snowy Hydro
SNOWY 2.0 FEASIBILITY STUDY DELIVERED
AND MAKES FOR GOOD HOLIDAY READING
Snowy Hydro’s independent Board of Directors have approved the Snowy 2.0 feasibility study, and for further work to be undertaken for the project to progress to a final investment decision in 2018.
The feasibility study released today confirms that the Snowy 2.0 pumped hydro expansion project is both technically and financially feasible. The comprehensive study provides a base case design and a strong investment case that exceeds Snowy Hydro’s stringent investment hurdles, with significant
input from leading experts in economics, engineering and geology.
Snowy Hydro’s CEO, Paul Broad, said that progressing Snowy 2.0 was a strategic business decision and the projected return on investment would enable the company to fund the project.
“Snowy 2.0 will play a critical role in underpinning the security and reliability of the National Electricity Market (NEM) as we transition to a low emissions future, at least cost to consumers.
“There is lots of interest across the mountains about Snowy 2.0 and I’d encourage anyone looking for a good holiday read to have a look at the feasibility study.
“I’d also like to take this opportunity to thank some of the local businesses who contributed to the study including Jindabyne Landscaping, Mulligan’s Drilling, South-East Printing, Heli Surveys, South-East Waste Recovery, Withers Earthmoving , Ryans Dozer Hire, Snow Goose Adaminaby,
Peter Burns Surveyors and True North Helicopters just to name a few.
“We’re a proud supporter of the local community and consider the Snowy Mountains as our backyard. I’m pleased that as the project progresses we’ll be creating direct jobs and employment opportunities
across the supply chain and in supporting services,” Mr Broad said.
The feasibility study outlines:
● A strong investment case for the project and funding strategies.
● A base case technical design, to be further refined as the project moves to final investment decision.
● The independent estimation of costs between $3.8 – $4.5 billion, which takes into account the need for extensive reinforcement of the project’s structures due to the challenging geological conditions that were uncovered during the geotechnical drilling program.
● If Snowy 2.0 is not built, the NEM would need a combination of batteries and gas peaking stations to meet future energy needs. This would cost at least twice as much as Snowy 2.0.
● A project schedule that will see the first power generated from Snowy 2.0 in late 2024, in time to meet market needs.
“Completing this study is a significant and exciting milestone for us but it’s only just the beginning. The sheer size of Snowy 2.0 makes it a complex and significant project that will put the Snowy Mountains back in the global spotlight.
“It was also great to see almost 300 people attend one of our recent community information sessions. The feedback we received from locals was very positive and we look forward to continuing our conversations with the community in the New Year,” Mr Broad said.
Between now and final investment decision, Snowy Hydro will undertake further work including additional geotechnical drilling, issuing project tenders, finalising funding for the project and working through well established and rigorous environmental and planning approval processes.
The feasibility study and more information on the project can be found at www.snowyhydro.com.au
Snowy 2.0 video can be viewed here