Contractors named for new 12GWh pumped hydro storage project

A proposed 750MW pumped hydroelectric energy storage project near Mackay in Central Queensland, which would boast storage capacity of 16 hours, has signed contracts with two firms to carry out initial development planning.

The planned pumped hydro storage project is part of the larger Capricornia Energy Hub (CEH), a 1.4GW hub consisting of wind, solar, and pumped hydro storage, currently owned by Copenhagen Infrastructure Partners.

Set to be located on two large rural landholdings in the Mackay Hinterland on Widi Country, and downstream of the Eungella Dam, construction of the Capricornia Pumped Hydroelectric Storage System (PHES) is currently expected to get underway next year, with start of operation set for 2031.

An estimated 600 jobs will be created during peak construction and a further 65 local ongoing jobs during commercial operations.

Once operational, the pumped hydro storage facility will be capable of delivering dispatchable green energy into the grid to power the equivalent of 1.5 million homes.

A joint venture formed between infrastructure firms Gamuda and Ferrovial signed an early contract involvement (ECI) agreement with the Capricornia Energy Hub for the pumped hydro storage project.

The ECI phase is expected to take approximately five months and will deliver a development of an engineering, procurement, and construction (EPC) contract for the pumped hydro storage part of the CEH.

The Capricornia PHES will consist of a 750MW pump with total storage capacity of 12GWh, and will also include an upper off-stream reservoir and a lower reservoir located approximately five kilometres downstream of the Eungella Dam.

“The appointment of ECI partners is a significant milestone for Capricornia Energy Hub as it allows us to draw on Gamuda’s and Ferrovial’s expertise to design a cost-effective pumped hydro,” said John Carr, CEO of Capricornia Energy Hub.

The new Queensland LNP government has already canned the state’s biggest pumped hydro project at Borumba and is reviewing another at Pioneer Burdekin.

It has said it favours smaller pumped hydro projects, but it has also paused approval of several new wind farm developments and does not support the previous government’s renewable energy targets.

The joint venture undertaking the ECI phase brings together Malaysian engineering firm Gamuda Berhad and European infrastructure operator Ferrovial.

“This appointment reflects the strength of our partnership with Gamuda and highlights our dedication to delivering world-class infrastructure,” said Antonio Cañete Berenguer, managing director of Ferrovial Construction Australia.

“Together, we’re shaping Australia’s clean energy future, building on our success in projects like the Coffs Harbour Bypass and Oven Mountain Pumped Hydro Storage project.”

The signing comes a few months after Capricornia Energy Hub received the Final Terms of Reference (ToR) from the Queensland government which provide detailed assessment requirements and regulatory frameworks for continued development, including completion of an environmental impact statement.