Contracting for Queensland’s huge Borumba pumped hydro project – a rare renewable surviver of the change of government in the state from Labor to the LNP in late 2024 – has reportedly been suspended by the state treasurer and energy minister, amid concerns about rising costs.
The AFR reported on Thursday that Queensland Hydro has halted procurement for exploratory tunnelling and drilling and earthworks at the $18.4 billion project – offering “little explanation” for the move and casting fresh doubt over its future in the Gympie region.
The 2,000 megawatt (MW) and up to 48,000 megawatt-hour (24 hours) Borumba project is one of two major pumped hydro proposals originated under the state’s former Labor government as a key contributor to its renewable energy targets – and an essential part of the state’s exit from coal power.
The LNP scrapped the up to 5 gigawatt (GW) Pioneer-Burdekin Pumped Hydro Scheme just weeks after coming into power, arguing it was not financially viable. A few weeks later, the Crisafulli government also officially dumped the state’s renewables targets and promised to extend the life of its coal plants.
The fate of the Borumba project had appeared shaky, too, after costs were said to have blown out by around $4 billion to more than $18 billion. But in December the project won federal EPBC approval and Queensland Hydro confirmed that stage one works would begin soon.
Now, however, the project appears to be back under a cloud, sent there – in part – by last week’s news that the cost of the massive Snowy 2.0 project in New South Wales has ballooned out even further to somewhere between $22 million and $25 million.
“We are carefully progressing the assessment of the Borumba project after the former Labor government’s $36.8 billion Pioneer-Burdekin pumped hydro hoax and the more than 20-times cost blowout of the federal government’s Snowy Hydro 2.0,” Queensland energy minister and treasurer David Janetzki told the AFR.
Renew Economy has sought comment from Janetzski and from Queensland Hydro about the suspension to contracting.
In response, Queensland Hydro said it is “continuing to review its program of work to ensure activities are appropriately prioritised and supported by robust governance and assurance.
“We are progressing our exploratory works which include the gathering of critical geotechnical data, environmental investigations, community engagement and economic assessments. This work will inform the Business Case that is expected to be delivered to government in 2026-27,” a spokesperson said.
Queensland already plays host to the first pumped hydro project to be built in Australia in 40 years, in an old open gold mine at Kidston. At 250 MW, 2,000 MWh it is a fraction of the size of Snowy Hydro, but it has also run into construction delays, and is already a year late in it commissioning process.
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