Queensland tips $190m into works for massive pumped hydro project

The Queensland government has awarded three major works packages worth $190 million to Queensland based companies for the 2GW/48GWh Borumba Pumped Hydro Project.

The 2GW, 24-hour (48GWh) pumped hydro project is expected to be one of the largest in Australia and is designed to provide necessary long-duration storage to support Queensland’s transition to a clean energy system.

Only Snowy 2.0 at 2.2 GW and the proposed 5 GW Pioneer-Burdekin pumped hydro project, also in Queensland, are expected to be larger. 

Announced on Tuesday, Queensland Hydro, a publicly owned entity established by the Queensland Government, awarded three major works packages worth a total of $190 million.

Water2Wire Joint Venture (JV) – a joint venture between leading engineering and design firms GHD, Mott MacDonald, and Stantec, which was created to develop pumped hydro across the state – will be responsible for leading the engineering and design for the Borumba Project’s seven proposed dams.

Specifically, Water2Wire JV will be lead the engineering and design for six new dams to form a new upper reservoir, and one new dam wall and spillway immediately downstream from the existing Borumba Dam.

This replacement dam wall will increase the capacity of Lake Borumba, providing extra security to the proposed energy storage scheme.

Awarded in two contracts – one for the upper reservoir and one for the lower reservoir – the value of the contracts is $40 million.

“Water2Wire has consistently shown their expertise in delivering world-class hydropower and dam projects, including the Kidston PHES and many projects abroad,” said Kieran Cusack, Queensland Hydro CEO.

“The three companies of the joint venture will bring their significant dams and hydro design experience to our Borumba Project and we are excited to be partnering with them.

“Pumped hydro is unquestionably the right technology to enable Queensland’s clean energy transition. Our Borumba Pumped Hydro Project will provide essential energy storage and play a big role in decarbonising the energy system, while creating thousands of jobs and a boost to the local economy.”

A second package, worth $39.9 million, was awarded to a joint venture created between Swedish-headquartered international engineering, design, and advisory company AFRY, and Australian-headquartered international engineering, design, and advisory firm Aurecon.

The AFRY-Aurecon Joint Venture (JV) will be responsible for the Pumped Hydro Energy Storage (PHES) Designer package which will deliver critical front-end engineering design of the PHES storage project.

Paul Gleeson, managing director for energy at Australia Aurecon, believes that long-duration pumped hydro storage will play a critical role in stabilising an electricity grid that has high levels of renewable energy.

“It complements the typically shorter duration storage provided by utility-scale batteries, allowing stored energy to be released into our electricity grid when needed,” said Gleeson.

“As an Australian-headquartered company, Aurecon is proud to be supporting Queensland’s renewable energy ambitions, alongside our partner AFRY, adding to our long history of collaborating locally and globally across industry and government to deliver renewable energy infrastructure firsts at scale.”

Finally, a contract totaling approximately $111 million was awarded to Australian-owned engineering and construction company Decmil to design and construct two temporary workers camps on previously cleared freehold land on the site of the Borumba Project.

Each of the camps will be able to house up to 336 workers and will each include a wellness room, gym facility, running track, social room, and laundry facilities.