Queensland's Giant Borumba Hydro Project Advances

Written by Martin Lynch, European News Editor for IIR News Intelligence (Sugar Land, Texas)

Summary

Exploratory works at one of Australia's largest planned pumped hydro electricity have been given the green light.

Major Hydro Project Inches Forward

Commonwealth approval has been granted for the 2,000 megawatt (MW) Borumba Pumped Hydro Project in Queensland, Australia, allowing exploratory works to start in the coming months. 

Securing regulatory approval under the Commonwealth Environment Protection and Biodiversity Conservation Act (EPBC) to undertake exploratory works is an important step for the A$18 billion (US$12 billion) project which will be able to supply power for up to 24 hours continuously. Developer Queensland Hydro (Brisbane, Australia) said that exploratory works will collect "essential geotechnical data to confirm the site's conditions which will inform detailed designs and the revised business case". The project is one of a select few major renewable energy projects to survive the region's change of government last year.  

Project Details

Borumba was first identified as an ideal location for pumped hydro in 1980. The current project will see the expansion of the existing lower reservoir in Lake Borumba and the construction of a new dam at a higher altitude to create an upper reservoir. The  underground powerhouse will link the two reservoirs, allowing water to be pumped from the lower reservoir to the upper reservoir, and for water released from the upper reservoir to drive up to six 333 MW turbines to generate electricity. The project will see a total of seven dams constructed on the Mary River system, while Lake Borumba's storage capacity will increase greatly from 46 Gigaliters (GL) to 224 GL. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can click here for the reports.

Back to the Drawing Board

"The Borumba Pumped Hydro Project is a critical component of Queensland's future energy mix, and the Commonwealth regulatory approval is a significant step forward in its development," said Queensland Hydro's executive chair, Mark Irwin. "The proposed exploratory works will support the revised business case for the Borumba Project, with data collected able to support any future configuration. 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."

Federal Environment Minister Murray Watt, whose department granted approval for the exploratory works, commented: "These surveys will allow the proponent to mature the design of this facility, making sure that it benefits the environment, economy and local communities. If the project proceeds, the 48,000-megawatt-hour (MWh) 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."

Queensland's Change of Government

With the arrival of the new Liberal government in Queensland, many of the previous government's renewable targets and supported projects have been culled. The future of the Borumba project is not guaranteed, more so since Queensland Hydro admitted that the original costs had jumped by more than a third to A$18 billion (US$12 billion). The new state government has transferred oversight of the project to investment company Queensland Investment Corporation (QIC). Announcing the state's new Energy Roadmap last year, Treasurer and Energy Minister David Janetzki said: "We've made this decision following revelations from Queensland Hydro in December the cost to deliver Borumba had blown out by A$4 billion to a total of A$18 billion (US$12 billion) and would take an additional three years to complete. The report also revealed there was less than a 1% chance of Borumba being completed on time for its first planned power in 2030. QIC is uniquely placed and experienced to support Queensland Hydro to deliver a proper commercial assessment of delivery options."

The local Queensland government, which supports maintaining the region's coal-fired power fleet, pulled the plug on one of the world's largest planned pumped hydro schemes, the 5,000-MW Pioneer Burdekin project at the end of 2024. At the time, it stated: "The government has formally stopped this project because it's not financially viable, not environmentally appropriate and the community was never consulted." The state has granted A$50 (US$34 million) to support ongoing feasibility works into developing a pumped hydro station at Mount Rawdon. 

Key Takeaways

• Green light for exploratory works at the planned 2,000 megawatt (MW) Borumba Pumped Hydro Project in Queensland, Australia. 
• Project costs have ballooned from A$12 billion (US$8 billion) to A$18 billion (US$12 billion).
• The new state government in Queensland has culled a number of key renewable energy projects.

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