The other members of the Future Generation joint venture are Australia’s Clough, which has a 35% stake, and Salini’s US subsidiary Lane (10%).
The contract covers the civil works and electromechanical component of the Snowy 2.0 project, which will be an expansion of a network of hydro power stations in the in the Snowy Mountains Hydro-electric Scheme.
The team had been named in January as preferred bidder (link opens in new tab).
“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,” said Pietro Salini, chief executive officer of Salini Impregilo. He added: This contract confirms our strategy to grow in the country and the investments that we have been making in recent years.”
The project has been commissioned by Snowy Hydro, one of the country’s largest energy companies, Snowy 2.0 will increase by 2,000MW the generating capacity of the scheme, which currently stands at 4,100MW. It will also triple its pumping capabilities.
Under the terms of the contract, the team will link the existing Tantangara and Talbingo dams by excavating a series of tunnels and building a hydroelectric power station with pumping facilities located nearly 1km underground.