Salini Impregilo, Clough bag €3.2bn contract for Snowy 2.0 project
Future Generation – a joint venture between Salini Impregilo and Clough, has bagged a contract worth AUD 5.1 billion (€ 3.228 billion) for the civil works and the electromechanical component of the Snowy 2.0 project, a 2GW pumped hydro project in New South Wales, Australia.
Snowy 2.0 project contract
The Snowy 2.0 project involves the expansion of the existing network of hydropower stations under the Snowy Mountains Scheme to provide electricity to an additional 500,000 homes.
Currently, the Snowy Mountains Scheme has a capacity of 4.1GW and is made up of nine separate generating/pumping facilities located mainly in the Kosciuszko National Park.
Snowy 2.0 project will be a 2GW pumped hydro project in New South Wales. Photo courtesy of Clough.
The Snowy 2.0 project is also expected to triple the Snowy Mountains Scheme’s pumping capabilities. The new pumped hydro project will offer the National Electricity Market 175 hours of storage, which will ensure the stability and reliability of the electricity system during prolonged weather events like wind or solar droughts.
As per the terms of the contract, Salini Impregilo will be responsible for linking the existing Talbingo and Tantagara dams through the excavation of various underground tunnels to the depths of up to a kilometer and also for constructing an underground hydroelectric power station with pumping capabilities.
Pietro Salini, CEO of Salini Impregilo, said: “With this massive project, our Group is expanding its activities in Australia by entering the hydro sector to help the country produce more clean energy.
“We are bringing know-how that we’ve acquired from hundreds of projects built throughout the world. This contract consolidates our presence in the country where Salini Impregilo has been working in recent years, especially in the transport sector to expand sustainable mobility in cities like Sydney and Perth.”
The Italian construction company Salini Impregilo along with its US subsidiary Lane holds a stake of 65% in the Future Generation joint venture, while Clough, which is an Australia-based engineering and construction company, holds the remaining 35% stake.
Peter Bennett – Clough CEO and Managing Director, said: “Salini Impregilo is a major global player in the large-scale infrastructure sector, and a world leader in hydropower and tunnelling.
“Combined with Clough’s Australian engineering and construction expertise, we create a partnership capability that is unparalleled. We look forward to delivering this project together for the benefit of the Australian community.”
About a year ago, the Australian federal government signed a deal worth over AUD 6 billion ($ 4.65 billion) with the New South Wales (NSW) and Victorian governments to buy out their stakes in Snowy Hydro, in order to help in advancing the Snowy 2.0 project.