Queensland’s proposed Borumba pumped hydro project faces mounting scrutiny after revelations that its construction costs could be up to six times higher per kilowatt hour than those of Snowy 2.0, Australia’s largest ongoing pumped hydro initiative. The $18.4 billion project, located about 70 kilometers west of Noosa, was initially presented as a key component of the state’s renewable energy transition, intended to supply power to around two million homes and businesses by 2030.
However, the scheme has suffered significant delays and budget overruns. Originally announced by the former Labor government, it is now three years behind schedule with costs escalating well beyond initial estimates. A state government-commissioned review assessing the project’s viability is overdue by nearly six months and is not expected to be completed until next year. In response to these uncertainties, exploratory tunneling work halted last week pending clarification on the project's future.
The Borumba facility, designed as a large-scale energy storage system, sits adjacent to Conondale and Wratten National Parks. Environmental concerns have emerged, as Queensland Hydro’s own internal report highlighted potential risks to local biodiversity. The report identified 21 threatened or endangered species that could be impacted, including the Mary River turtle and Australian lungfish. Furthermore, it estimated that 314 hectares of critically endangered subtropical lowland rainforest would be submerged or cleared, alongside the loss of 4,348 hectares of other forested areas. These environmental factors echo opposition to a 2009 proposal for the Traveston Dam downstream on the Mary River, which was blocked due to threats to similar wildlife.
On the financial front, renewable energy experts emphasize the long-term value of pumped hydro. Professor Andrew Blakers, notable for developing the Global Pumped Hydro Atlas that informed site selection for Borumba and other projects, commented that despite high initial costs, pumped hydro offers one of the most cost-effective options for long-duration energy storage, with operational lifespans reaching 150 years. He noted that such projects cost about one-third as much as battery storage and last seven times longer.
Following the election of the Liberal National Party (LNP) government under Premier David Crisafulli in October 2024, the much larger Pioneer-Burdekin pumped hydro project was cancelled due to anticipated cost escalations potentially reaching $36 billion. Meanwhile, the government's current approach involves reviewing “smaller, more manageable” pumped hydro schemes. Queensland Treasurer and Energy Minister David Janetzki stated that an ongoing commercial review by the Queensland Investment Corporation (QIC), which recently took over Queensland Hydro, would determine the future of Borumba. QIC is also examining the Capricornia pumped hydro project near Mackay, which is privately proposed at $2.8 billion and planned to offer 12 million kilowatt hours of storage capacity.
Opposition Leader Steven Miles criticized the government’s handling of energy storage projects, warning that delays and cancellations would hinder Queensland’s capacity to meet rising energy demand and result in higher household bills and job losses in manufacturing and refining sectors. The government counters that it is committed to thoroughly evaluating viable pumped hydro options that balance economic and environmental considerations.
The ongoing debate over Queensland’s pumped hydro future underscores the challenges of integrating large-scale renewable energy storage while managing technical, financial, and ecological risks. With key reviews still pending, the ultimate path for Borumba and related projects remains uncertain.