Snowy Two tunnel machine stalls, cost estimates balloon toward $20 billion
Tunnel boring machine Florence has been idle since mid-July, with Snowy Two costs jumping from $2 billion toward about $20 billion.
Snowy Hydro's giant tunnel boring machine Florence has been idle since mid-July. Florence awaits maintenance on the 17-kilometre headrace tunnel for Australia's largest pumped hydro project.
The company says work should finish by mid-October. Florence is 49 per cent through the tunnel.
Snowy Two was originally budgeted at $2 billion but now costs $12 billion. Speculation suggests the final bill could reach about $20 billion.
CEO Dennis Barnes acknowledged the project is fraught with risk, particularly through a geological fault zone. Critics including One Nation's Pauline Hanson call it a wasteful black hole.
But Barnes argues pumped hydro is Australia's cheapest option for renewable-backed power.
- 17 kilometres
- Tunnel length
- 49%
- Machine progress
- $2 billion
- Original budget
- $12 billion
- Current estimate
Why it mattersEach delay and cost blow-out affects Australia's energy security and the budget burden of building renewable infrastructure.
AustraliaRising costs for Snowy Two will likely push up electricity prices and delay the transition to renewable energy across the National Electricity Market.
✓ Claims checked against the source. checked 4 d ago
