Pumped hydro is unquestionably the right technology to enable Queensland’s clean energy transition

We possess a unique opportunity to shape the future of energy and regional development. Queensland Hydro is driven by an unwavering commitment to lead and deliver positive change – not just for the energy system itself, but in how we support and partner with the communities in which we operate, how we care for the environment, how we can provide massive opportunities for businesses and industry, and how we provide employment opportunities in the developing renewable energy sector.

Queensland Hydro was established by the Queensland Government to design, deliver, operate and maintain long duration pumped hydro energy storage assets that will be the cornerstone for the transformation of the state’s energy system.

We are progressing two pumped hydro energy storage systems – the 2,000MW Borumba Project west of the Sunshine Coast and the 5,000MW Pioneer-Burdekin Project in the Pioneer Valley west of Mackay.  

What is pumped hydro?

Pumped hydro is a proven and mature technology that has been used for more than 100 years around the world to generate and store energy. Hydropower is the largest single source of renewable energy, with pumped storage hydropower providing more than 90 per cent of all stored energy in the world.

It works like a large, rechargeable battery by using water, geography and the force of gravity to store and generate energy when the grid needs it most. Pumped hydro captures and stores energy that is generated on windy and sunny days that is in excess of the needs of the grid that would otherwise be lost.

It works by having upper and lower reservoirs. It uses the surplus energy generated by solar and wind to pump the water from a lower reservoir to a higher reservoir. When renewable energy supply is running low and unable to meet demand, like at night time or other peak usage periods, the stored water from the upper reservoir is released through underground pipes that run through turbines to generate electricity that is then returned to the grid for Queensland homes and businesses.

How will pumped hydro enable the energy transition?

Queensland Parliament has legislated emission targets to reach net zero by 2050 and to achieve this outcome we need to reliably transition our energy system away from traditional generating sources that rely on fossil fuels so there is 50% renewable energy generation by 2030, 70% by 2032 and 80% by 2035.

Queensland will need at least 6,000MW of long duration storage for a highly renewable system. It is Queensland Hydro’s job to provide the pumped hydro assets to make the shift to renewable energy a reality for Queenslanders.

Why Mackay and the Pioneer Valley?

Mackay is no stranger to being an Australian and Queensland powerhouse. It’s a leader in mining and sugar, and is fast becoming known for its growth in biofuels and critical minerals processing. Our projects will offer Queensland’s homes and businesses reliable and stable clean energy – a huge benefit when businesses are trying to demonstrate their green credentials to customers, investors and overseas markets.

The renewable transition can drive the next phase of significant economic growth for Mackay, the Greater Whitsundays and Isaac regions.

The proposed site for the Pioneer-Burdekin Project is an ideal location for pumped hydro due to 700m of elevation and short tunnel lengths between upper and lower reservoirs which creates the potential for huge energy storage and generation, while maintaining a compact surface area.

Compared to Snowy 2.0 which has tunnel lengths of about 27 kilometres between reservoirs, the proposed Pioneer-Burdekin Project will have tunnel lengths of about 3 kilometres.

Supporting communities, jobs and local businesses

These projects are history making – they’ll deliver benefits to our communities for decades to come. From job creation, cleaner energy, economic opportunities, and environmental and social improvements, there’s a world of opportunity for Queenslanders now, and well into the future.

We are developing a Community Benefits Framework that will support community initiatives to deliver positive legacy projects so regional towns can thrive and we will work with locals to co-design these benefits.

Job creation is one of the main benefits that is often outlined whenever a big new project is proposed, but the positive impacts on the surrounding communities are much broader and further reaching than that. Alongside the thousands of workers needed during the construction period, our two projects will inject hundreds of millions of dollars into the regional economy through local supply chains.

We have partnered with Resources Centre of Excellence to deliver training and skills transition to provide opportunities for workers right here in the Mackay region.

The environmental benefits

As a renewable energy project, we are intent on being nature positive and deliver benefits to the environment over and above the long-term climate benefits of our pumped hydro projects.

We share Queenslanders’ desire to protect our natural environment. We’re committed to leaving the environment we’re operating in better off overall as a result of our proposed projects.

Climate change is one of the biggest threats to Australia’s and Queensland’s unique biodiversity. It is also now recognised as the greatest long-term threat to the Great Barrier Reef.

Decarbonising the energy system is the right thing to do. Our modelling indicates the 2,000MW Borumba Project will enable up to 4 million tonnes of CO2 to be avoided each year, and our 5,000MW Pioneer-Burdekin Project will enable around 7 million tonnes of CO2 to be avoided. When you think our assets can be operated for more than 50 years, and up to 100-years with good maintenance, this is really significant.    

The pathway to approvals

Queenslanders would expect infrastructure of the scale of the Pioneer-Burdekin Project to undergo robust planning, and that is exactly what we are doing. We are still conducting initial investigations and compiling a Detailed Analytical Report with all the information and options for the government to make an informed decision.

If supported, we are required to obtain approvals from the federal and state governments. We have to demonstrate that pumped hydro is needed, that the impacts are acceptable, and that all of the economic, environmental and social benefits that we’ve promised will flow.

Answering some common questions

Housing – We know housing pressures exist all over Australia, in Queensland and in the Mackay region. We are developing housing strategies and are learning from other big projects to make sure we don’t negatively impact on housing stock. Our intention is for workers during construction to be accommodated on our proposed site.  

Cultural heritage – We are conducting cultural heritage assessments and working with Traditional Owners. If the project is supported, we will progress Indigenous Land Use Agreements (ILUAs) in line with best practice.  

Land acquisition – We have commenced voluntary acquisition of land by engaging in good faith negotiations with landholders who have indicated to us they would prefer to sell now rather than wait for certainty about the project proceeding. Many of the people who have sold continue to live on their land and have options to purchase the properties back if the project doesn’t proceed.

A final word

These projects really do offer a world of opportunity – to deliver nature-positive outcomes, new jobs, new industries, regional development, local investment and community benefits.

This is our chance to build once in a generation assets that leave a valuable legacy while also creating real benefits in real-time for our industries and communities.

Queensland Hydro is privileged to take on this task for all Queenslanders.

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