One of Australia’s largest proposed pumped hydro projects has cleared a key federal hurdle. The Borumba Pumped Hydro Project, planned near Gympie in Queensland, has received EPBC Act approval to begin exploratory works, marking a significant – if tentative – step forward for the controversial energy storage mega-project.

The approval allows Queensland Hydro to commence stage one works, including geotechnical investigations and site preparation, to inform a revised design and business case. While the project has survived Queensland’s recent change of government, its long-term future remains uncertain amid cost blowouts, shifting energy policy, and broader scrutiny of large-scale infrastructure spending.

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Key Points

• Federal EPBC Act approval granted for stage one exploratory works.
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• Proposed capacity of 2,000 MW with up to 48,000 MWh (24 hours) of storage.
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• Exploratory works to include drilling, test pits, and limited vegetation clearing at Lake Borumba.
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• Up to 270 jobs expected during the exploratory phase.
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• Project cost estimates have risen beyond $18 billion, prompting review and potential downsizing.
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• Final construction phase will still require separate environmental and government approvals.

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Project Significance

Borumba is positioned as a cornerstone of long-duration energy storage in Queensland, designed to smooth out variability from wind and solar generation and support grid reliability during prolonged low-renewable periods.

If delivered at its original scale, it would become the second-largest pumped hydro facility in Australia, capable of supplying electricity to around 640,000 households at peak demand for four hours. For supporters, it represents critical infrastructure for a low-emissions energy system. For critics, it highlights the financial and delivery risks associated with complex mega-projects.

The project’s survival is notable given the Crisafulli government’s decision to abandon other major renewable initiatives, including the Pioneer–Burdekin pumped hydro scheme, and to scale back renewable energy targets more broadly.

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Further Details: Approval, Risk, and Reassessment

Federal Environment Minister Murray Watt approved the exploratory works subject to nearly 70 conditions aimed at minimising environmental impacts. These include limits on clearing, species management plans, and biodiversity offsets. Queensland Hydro says the data gathered will reduce uncertainty and help avoid the types of construction risks seen in projects like Snowy 2.0.

However, challenges remain. The Queensland Government is reportedly considering reducing the project’s scale by up to a quarter to rein in costs and respond to the discovery of a culturally significant site, which has already required design changes. Some contractors have been told to pause work while the scope is reassessed, fuelling speculation about further delays or cancellation.

Energy experts are divided. Pumped hydro is widely regarded as essential for long-duration storage, but its high capital costs are increasingly being compared with rapidly improving battery technologies. Others warn that abandoning projects like Borumba could undermine emissions targets and investor confidence in Queensland’s energy transition.

For now, Borumba is proceeding – cautiously. The exploratory phase will shape whether the project can justify its cost, environmental footprint, and strategic role in Queensland’s future energy mix. As with many large infrastructure projects, its fate will hinge not just on technical feasibility, but on politics, economics, and public tolerance for risk.