Inside the engineering megaproject that went horribly wrong | Four Corners

ABC News In-depth

23 Oct 202344:58

EducationalLearning

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TLDRThe Four Corners episode delves into the troubled journey of the Snowy 2.0 project, a monumental pumped hydro scheme heralded for its potential to revolutionize Australia's energy landscape. Originally celebrated as a nation-building, low-carbon future initiative, the project has since been plagued by massive delays, cost blowouts, and technical challenges, casting doubts on its feasibility and impact. With the cost now six times the initial estimate, reaching $12 billion, and a tunnel boring machine stuck, the documentary explores the series of misjudgments and unexpected geological challenges that have tarnished the project's reputation, sparking a debate on its efficacy and the transparency of Snowy Hydro towards the public.

Takeaways

🏗️ Snowy 2.0, a massive pumped hydro project in Australia, was sold as a 'nation-building' initiative for a low-carbon future but has been plagued by long delays and massive cost blowouts.
🚧 A giant tunnel boring machine named Florence has been stuck for 19 months due to unexpected soft ground conditions, causing a sinkhole and environmental damage in the Kosciuszko National Park.
💰 The project's cost has skyrocketed from an initial estimate of $2 billion to $12 billion, six times the original projection.
⚠️ Warnings from experts about the complex geology and the need for more drilling were ignored during the planning stages, leading to significant problems.
🤥 Snowy Hydro has been accused of misleading the public about the project's progress and downplaying the extent of the issues faced.
⚠️ Safety concerns have been raised, with incidents involving toxic gas leaks and inadequate measures to protect workers.
🌳 The project's transmission lines are facing opposition from landowners and environmentalists due to the potential damage to farmland and native vegetation.
❓ Doubts have been raised about the project's necessity, with suggestions that large-scale batteries could provide more cost-effective and environmentally friendly energy storage solutions.
💸 The project's cost blowouts and mismanagement have raised questions about the government's ability to oversee and manage such complex infrastructure projects effectively.
🤝 Calls for independent oversight and monitoring of the project's progress and budget have been made to restore public trust and accountability.

Q & A

What is the main goal of the Snowy 2.0 project?
-The main goal of the Snowy 2.0 project is to provide low-carbon, renewable energy by creating a pumped hydro scheme capable of powering up to 3 million homes for an entire week, thereby contributing to the energy transition and helping save the planet from climate change.
Why has Snowy 2.0 been criticized?
-Snowy 2.0 has faced criticism due to long delays, massive cost blowouts, and challenges like a tunnel boring machine getting stuck, which raised concerns over project management, cost estimation, and the environmental impact.
What was the initial cost estimate for Snowy 2.0 and how has it changed?
-The initial cost estimate for Snowy 2.0 was around $2 billion. However, it has since escalated to $12 billion, six times the original estimate.
What significant problems have affected the progress of Snowy 2.0?
-Significant problems affecting Snowy 2.0's progress include encountering unexpected soft ground that stopped the tunnel boring machine Florence, leading to delays, and a sinkhole that represented a failure in constructing a tunnel without damaging the environment.
What is the significance of the transmission network for Snowy 2.0?
-The transmission network is crucial for Snowy 2.0 as it would need to connect the generated electricity to the grid. This requires building a vast new network of power lines, which has faced opposition due to its environmental and aesthetic impacts.
What challenges are associated with the geology of the Snowy 2.0 project?
-The project is located in geologically diverse and complex terrain, which poses challenges like soft ground and water ingress that can hinder tunneling progress and increase the risk of incidents, such as the one experienced by the tunnel boring machine Florence.
How has the management of Snowy 2.0 responded to the project's setbacks?
-The management has acknowledged the challenges and setbacks, including the miscalculation of ground conditions and the resultant cost increases. They have expressed confidence in overcoming these issues through learning from mistakes and adjusting project plans.
What are the environmental concerns associated with Snowy 2.0?
-Environmental concerns include the potential impact on the Kosciuszko National Park, damage from sinkholes, the threat to biodiversity, and the controversy over the construction of new transmission lines through prime farmland.
How do critics view the feasibility and economic viability of Snowy 2.0?
-Critics argue that Snowy 2.0's economic and technical feasibility is questionable due to its high costs, long delays, and the availability of alternative energy storage solutions like batteries that could be cheaper and quicker to deploy.
What are the benefits of Snowy 2.0, despite the challenges and criticisms?
-Despite the criticisms, Snowy 2.0 is seen as a crucial part of Australia's energy transition, providing long-duration storage for renewable energy and ensuring energy security by contributing to the stability of the national grid.

Outlines

00:00

🔌 Snowy 2.0: Ambitions and Challenges

Snowy 2.0, a pumped hydro scheme aimed at fostering a low-carbon future, is portrayed as a critical engineering and environmental endeavor with the potential to power up to 3 million homes for a week. Despite its promise as a valuable asset for the energy transition, the project faces criticism for long delays and escalating costs. Early enthusiasm for its nation-building potential is contrasted with significant setbacks, including a stuck tunnel boring machine (TBM) named Florence, indicative of deeper issues such as cost underestimations and ground condition misjudgments. The narrative underscores the challenges of balancing technical ambition with practical realities, highlighting both the optimism surrounding the project's impact on energy transition and the critiques of its execution.

05:02

🛠 Technical Setbacks and Political Ambitions

The journey of Snowy 2.0 is marked by significant technical and administrative hurdles, starting from its conceptualization during an energy crisis, through its political endorsement by Prime Ministers Malcolm Turnbull and Scott Morrison. The project, initially sketched on a beer coaster, symbolizes a high-stakes response to Australia's renewable energy storage needs, yet it quickly encounters geological challenges, cost blowouts, and delays. This narrative strand explores the dichotomy between the political will to realize a vision of nation-building through renewable energy storage and the complex reality of engineering challenges, environmental concerns, and community opposition.

10:03

🌍 Environmental Impact and Community Concerns

The development of Snowy 2.0 is faced with environmental and social challenges, including concerns over its impact on national parklands and community apprehension regarding new transmission lines. Despite its potential to contribute significantly to Australia's energy transition, the project's execution raises questions about the balance between technological progress and environmental stewardship. The discussion extends to the implications of large-scale infrastructure projects on local communities and ecosystems, emphasizing the importance of careful planning and stakeholder engagement in achieving sustainable development goals.

15:04

💼 Corporate Governance and Public Trust

Snowy 2.0's progression is complicated by issues of transparency and public communication, particularly concerning the challenges faced by the TBM Florence. The narrative delves into the management decisions and the ensuing public scrutiny over the project's cost overruns and operational setbacks. This section highlights the importance of trust and accountability in public infrastructure projects, questioning the balance between corporate optimism and the reality of project execution. It examines the role of corporate governance in fostering public trust and the critical need for honest, transparent communication with stakeholders.

20:05

🚧 Safety Concerns and Contractor Performance

The construction phase of Snowy 2.0 unveils significant safety concerns and criticisms of the main construction contractor's performance history. The project's challenges are compounded by incidents leading to worker injuries and environmental hazards, casting a shadow over the contractor's safety record and operational decisions. This part underscores the critical importance of safety in large-scale engineering projects and the consequences of compromising on contractor selection and risk management practices, reflecting on past incidents to stress the necessity of prioritizing worker safety and environmental protection.

25:09

🔍 Reevaluating Renewable Energy Solutions

As Snowy 2.0 continues to face operational, environmental, and financial hurdles, the discussion shifts towards alternative renewable energy solutions and the broader implications for Australia's energy policy. Critics argue that advances in battery technology and other storage methods offer more cost-effective and environmentally friendly alternatives for meeting the country's energy storage needs. This segment reflects on the project's challenges within the larger context of transitioning to renewable energy, questioning the project's feasibility and exploring the potential for other technologies to provide more immediate and less disruptive solutions.

Mindmap

Keywords

💡Snowy 2.0

Snowy 2.0 is a massive pumped hydro project being constructed in the Snowy Mountains region of Australia. It involves a network of tunnels connecting two existing reservoirs, Tantangara and Talbingo, allowing water to be pumped up and released to generate renewable electricity. The script describes it as a 'nation-building' project aimed at providing large-scale energy storage for Australia's transition to renewable sources. However, it has faced significant delays, cost blowouts, and engineering challenges, such as the tunnel boring machine (TBM) named Florence becoming stuck due to unexpected ground conditions.

💡Pumped Hydro

Pumped hydro is a type of energy storage system that uses electricity to pump water from a lower reservoir to a higher one, effectively storing the energy as potential energy. When electricity demand is high, the stored water is released, flowing through turbines to generate electricity. This process allows excess renewable energy (e.g., from solar or wind) to be stored and dispatched when needed. In the script, Snowy 2.0 is described as a 'giant battery' and a 'pumped hydro scheme' that will store and generate renewable energy.

💡Tunnel Boring Machine (TBM)

A tunnel boring machine (TBM) is a specialized machine used to excavate tunnels with a circular cross-section through various types of soil and rock. The script mentions three TBMs being used for Snowy 2.0, with a particular focus on the one named Florence. Florence became stuck due to encountering unexpectedly soft and wet ground conditions, leading to significant delays and a sinkhole forming above the tunnel. The problems with Florence highlight the engineering challenges and geological uncertainties faced by the project.

💡Geology

Geology refers to the study of the Earth's physical structure and substance, including the materials, processes, and history that have shaped the planet's rocks, minerals, and landscapes. The script emphasizes the importance of understanding the complex and diverse geological conditions in the Snowy Mountains region, as unexpected ground conditions contributed to Florence's difficulties. There were concerns from experts that not enough geological investigation and drilling had been done prior to construction, potentially leading to miscalculations and unexpected challenges.

💡Cost Blowouts

Cost blowouts refer to a project's costs significantly exceeding the initial budget or cost estimates. In the case of Snowy 2.0, the script reveals that the project's cost has ballooned from an initial estimate of $2 billion to $12 billion, a six-fold increase. This massive cost blowout is attributed to factors such as underestimating the geological complexities, construction challenges, and contractor mistakes. The script suggests that these cost overruns were not adequately communicated to the public, raising concerns about transparency.

💡Nation Building

Nation building refers to the process of constructing or rebuilding the infrastructure, institutions, and social fabric of a nation or country. In the script, Snowy 2.0 is described as a 'nation-building' project by former Prime Minister Malcolm Turnbull, implying that it is a significant undertaking aimed at bolstering Australia's renewable energy infrastructure and securing its energy future. However, critics in the script argue that the 'nation building' rhetoric was used to justify and promote the project despite its escalating costs and challenges.

💡Energy Transition

Energy transition refers to the global shift away from fossil fuel-based energy sources towards renewable and sustainable alternatives, such as solar, wind, and hydro power. In the script, Snowy 2.0 is presented as a critical component of Australia's energy transition, providing large-scale storage for renewable energy sources. However, some experts in the script argue that there may be better and more cost-effective alternatives for energy storage, such as batteries, which could support the transition without the environmental impacts and risks associated with Snowy 2.0.

💡Environmental Damage

Environmental damage refers to the adverse impacts on the natural environment caused by human activities or projects. In the case of Snowy 2.0, the script highlights concerns about the project's environmental consequences, such as the sinkhole that formed within the Kosciuszko National Park due to construction mistakes. There are also concerns about the transmission lines required for the project, which will involve clearing land and potentially impacting farmlands and regeneration efforts.

💡Transparency

Transparency refers to the quality of being open, honest, and accountable, particularly in regard to public projects or institutions. The script suggests that there has been a lack of transparency from Snowy Hydro and the contractors regarding the challenges and setbacks faced by the Snowy 2.0 project. Critics argue that the public has been misled about the project's progress, costs, and issues, undermining trust and raising concerns about the need for independent oversight and monitoring.

💡Safety Concerns

Safety concerns refer to the risks and potential hazards associated with a project or activity, particularly in regard to the well-being and protection of workers and the public. The script highlights several safety incidents and breaches at the Snowy 2.0 construction site, including a toxic gas leak and a worker sustaining severe injuries during a previous project by the same contractor. The unions and experts in the script express concerns about the contractor's safety record and the need for proper safety measures and protocols to be followed.

Highlights

snowy 2.0 was sold as nation building, for a low carbon, future 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 for an entire week 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, blowouts

I knew it was just going to be, an absolute dog of a project that making, outlandish claims about when the sche, was going to be finished and they still, are

they got, the cost wrong the ground conditions the, time the schedule and I think the way, they leveled with the public they've got, that wrong, too

deep in the snowy mountains a giant, tunnel boring machine is stuck the, perfect illustration of how this, socalled 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

Dennis Barnes became snowy, hyro chief executive in February, inheriting a project plagued by problems

snowy 2.0 is being built in, rugged country deep in the Kiosco, National, Park

it will will now cost $12 billion, six times the initial estimate for this, snowy has copped sustained criticism

imagine more than 20 km of tunnels this, size full of, water so lots of people have said really, harsh things about snowy 2.0 that'll, never be completed what do you say to, them

we're about to go on, board a massive tunnel boring machine, called Florence it's at the very heart, of snowy's, problems

Florence has barely moved in 19, months at the entrance to the tunnel, where the machine is stuck sits a small, statue of St Barbara the patron saint of, tunneling she's charged with protecting, workers and watching over, projects

snowy will be hoping for her, good good, grace we encountered soft ground before, we were expecting, to that soft ground stopped Florence, suppos to step hazards and created a, world of pain for Dennis, Barnes

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 and I was wrong to you know, perhaps somewhat naive and optimistic uh, and you know I'm learning as I go as you, would, expect

Transcripts

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