Queensland premier says costs of dumped Pioneer pumped hydro project blew out to $37 billion

The new LNP government in Queensland says the Pioneer Burdekin pumped hydro project that it scrapped within days of taking charge after last month’s state election victory had suffered a major cost blowout.

Premier David Crisafulli says a briefing the government received within 48 hours of taking office revealed that the project’s $12 billion cost had ballooned to $36.77 billion – more than triple what was originally forecast – and likely to be the biggest cost blowout of any energy project in the country.

“I find it completely and utterly implausible that the former government wouldn’t have known about that,” Mr Crisafulli told ABC Radio on Monday.

Before the election, former premier Steven Miles admitted the price tag would be high for the project – heralded as the centrepiece of the Labor’s renewables plan – but would be worthwhile in the long term.

“(Pumped hydro projects) are income-generating assets that will generate a return to Queenslanders, basically forever,” he said during his second election debate with Mr Crisafulli.

“The capital cost, you’re right, is high, but the operational cost is very, very low, and the revenue from them is very, very high.”

Crisafulli visited the town of Eungella on Sunday to meet landholders whose properties were resumed or forcibly sold off for the project.

The premier apologised to those Queenslanders who he claimed the former government failed to consult before committing to the project.

“What they’ve been through was horrendous,” he said.

Deputy Premier Jarrod Bleijie promised on Friday to write to the almost 60 affected landowners and “work out a way forward”.

The LNP government will look to build multiple, smaller pumped hydro plants at yet-to-be-decided locations without a forecast price tag.

“We have to find a way to deliver smaller, more manageable pumped hydro because it’s important if you’re going to firm up renewables, you need that,” Crisafulli said.

Crisafulli promised to deliver the Borumba pumped hydro project, near the Sunshine Coast, at an affordable cost. The former government budgeted $6 billion towards the project, but the total cost of that project is estimated to be $14 billion.

The government says it will encourage smaller pumped hydro projects, and will unveil its plan once it decides on its list of preferred projects. Environmental advocates have called on the government to release details about its Pioneer Burdekin alternatives within 100 days.

“It’s really important that the new state government is upfront about which pumped hydro projects they’re considering,” Queensland Conservation Council director Dave Copeman said.

“Queenslanders want to know they’re serious about getting on with the energy transition, but also critically, we need to be able to assess the potential environmental impacts of their plans.”

The LNP government will hold its first cabinet meeting on Monday after ministers were sworn in on Friday. Crisafulli said all 19 worked through the weekend to prepare for the meeting.

AAP