Huge Queensland pumped hydro project gets federal green tick to begin stage one works

One of Australia’s biggest proposed pumped hydro projects, promising up to 24-hours of energy storage capacity, has been given a federal green tick to undertake exploratory works in Queensland’s Gympie region.

Queensland Hydro said on Thursday that it has secured EPBC Act approval to begin stage one works on the proposed Borumba Pumped Hydro Project, which includes gathering critical geotechnical data to progress design development and the revised business case, pending state approvals.

The 2,000 megawatt (MW) and up to 48,000 megawatt-hour Borumba project is a rare survivor of Queensland’s change of government last year, having been originated under the state’s former Labor government as a key contributor to its renewable energy targets.

Those targets – 50 per cent renewable energy by 2030, 70 per cent by 2032, and 80 per cent by 2035 – were last week officially dumped by the Crisafulli Liberal National Party government, which is throwing its energy policy weight behind coal and gas.

The LNP also dumped Labor’s proposal for the much bigger Pioneer Burdekin pumped hydro project, having promised to do so in its election campaign. Its support for Borumba had appeared shaky, too, after costs were said to have blown out by more than $4 billion to more than $18 billion.

This week’s approval, however, and confirmation that stage one works will begin soon, suggests the project is safe, for now, as long as its costs – both to the state budget and to the environment – can continue to be justified.

Of course, for such a huge project, the exploratory works are no small feat. The EPBC approval says they will include vegetation clearing and technical investigations like exploratory tunnel drilling, test pits and other supporting infrastructure at Lake Borumba, 13 km southwest of the township of Imbil.

Source: Queensland Hydro

Federal environment minister Murray Watt says his department’s approval of the stage one works – which are expected to generate as many as 270 jobs – is subject to nearly 70 “strict conditions” to minimise its potential environmental impacts.

Watt says the conditions include limits on clearing, the selection of an offset site, the implementation of species management plans and an offset management plan.

And once these works are completed, the project’s second stage – construction of the Borumba PHES project – will still require assessment and approval.

“These surveys will allow the proponent to mature the design of this facility, making sure that it benefits the environment, economy, and local communities,” the minister said in a statement on Thursday. 

“If the project proceeds the 48,000-megawatt hour facility will be the second largest pumped hydro facility in Australia and generate enough electricity to support 640,000 households powered at peak demand for four hours.  

“Projects like this one form a critical part of Australia’s transition to cheap, clean and green power.

“Importantly, it will help smooth out the variability of renewable generation for Queensland homes and businesses, supporting the renewable energy transition,” Watt said. 

Queensland Hydro, a state-owned entity created in 2022 by the former Queensland Labor government, says the EPBC approval is a “significant step” in the Borumba project’s development.

“The proposed exploratory works will support the revised business case for the Borumba Project, with data collected able to support any future configuration,” said Queensland Hydro chair Mark Irwin on Thursday.

“Delivering major infrastructure projects requires meticulous planning to avoid unforeseen risks. One of the most effective strategies for achieving this is undertaking comprehensive exploratory works before finalising designs and commencing future main works construction activities.

“In addition, and aligned to our commitments to local benefits, Queensland Hydro will be closely engaging with local suppliers and the community on the exploratory works program.”

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