Inside the Pioneer Burdekin pumped hydro Detailed Analytical Report that was mysteriously delayed
The dumped Pioneer-Burdekin pumped hydro scheme would have injected billions into Mackay’s economy and created hundreds of jobs. But it was never viable. Here’s why.
Mackay
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A Queensland Hydro report which was devastating to the Miles’ government’s plans for its centrepiece pumped hydro plan was delayed until after the election — despite originally being expected to be complete in June.
The Queensland Hydro Detailed Analytical Report executive summary claimed the Mackay region would have a $16bn benefit from the project — which was originally costed at $12bn in total.
The Pioneer-Burdekin project was also expected to generate 700-950 jobs annually between 2024 and 2054, according to Queensland Hydro, though it would also need a “fly-in, fly-out, drive-in, drive-out” workforce which it called an implementation risk.
But the 5000MW system repeatedly pushed by Labor during the election was never commercially viable.
That was because the previous government never did its homework with a systems level analysis to prove Queensland needed pumped hydro storage of that size.
Without the renewable energy to feed into it, and proven need for such a vast amount of storage and quick-generation, Queensland Hydro ruled it would be a bad investment, costing $27bn to build and leading to a loss of up to $6bn.
Smaller versions of the project in the same place, with fewer turbines, less underground works and less capacity would have been almost $10bn cheaper to build, and deliver a return on investment over time.
That has raised questions over why the report — which was first expected to be handed up in June — was not given to the government until after the election, especially given the reason the project wasn’t viable should have been known from very early on.
This masthead has sent a detailed list of questions to Queensland Hydro over what contacts it had with the government about the report, and exactly when it realised the 5000MW plan wasn’t viable.
A spokesman said no member of the government was briefed on the non-viable assessment, but government agencies were “provided regular updates on the progress of studies”.
“This detailed analysis was completed during the caretaker period so it was not provided at that time or prior to this time to either the then Government or Opposition,” the Queensland Hydro spokesman said.
It has previously said more time was requested earlier in the year for it to be completed, which it was on October 30.
When Steven Miles was asked if Queensland Hydro raised any concerns about the viability of the project with the government, his response was “not that I am aware of”.
Deputy Premier Jarrod Bleijie said the LNP government formally stopped this project because “it’s not financially viable, not environmentally appropriate and the community was never consulted”.
“The report revealed the project could not be built on time to meet Queensland’s emissions targets and the incoming LNP government should consider smaller pumped hydro projects,” Mr Bleijie said.
Speaking in Mackay, Mr Bleijie also ruled out the LNP going ahead with Queensland Hydro’s alternative smaller, more manageable pumped hydro plans for Pioneer-Burdekin, despite them being able to deliver a return on investment and only costing as little as $17bn.
“Whether it’s option one, two, or three, we’re not supportive of it,” he said.
He also guaranteed none of the alternative pumped hydro sites would be in the Pioneer Valley.
“We’ve ruled out that area,” Mr Bleijie said.
Questions over unique animals, environment unanswered
That report notes that Queensland Hydro wanted the Nature Conservation Act of 1992 to be amended for the pumped hydro system to be built, and to split its environmental approvals up to start works faster rather than have the whole project approved at once.
Queensland Hydro was in the process of “developing a strategy” to relocate platypus and expected to “improve their habitat to support a larger and more resilient population”, according to the report, but it is unclear how it would have achieved that.
Offset sites for unique animals like the Eungella spiny crayfish, Eungella honeyeater and Eungella day frog would have been difficult to find given their “limited geographic range”, Queensland Hydro wrote.
That may have required ‘financial or in-kind’ offsets. It is unclear what money could have achieved for those species, but Queensland Hydro has been asked.
The project was not yet at the stage of securing environmental approvals.
Questions over ownership
Despite Mr Miles’ repeated claims the Pioneer Burdekin pumped hydro would be 100% owned by Queenslanders and giving a return back to Queenslanders, Queensland Hydro recommended private-sector investment.
That would have allowed other companies to take a minority ownership of the project.
Recognising impact to locals
Queensland Hydro, to its credit, realised what the Queensland government didn’t when it first announced the project — the huge impact it would have on local communities.
The report notes that even though ‘regional stakeholders’ were broadly supportive, those living closer were more likely to be against it.
Queensland Hydro said it would secure a ‘social licence’ at the regional and state level, but expected it only to be “tolerated” by local communities with “careful planning, engagement, and follow-through on commitments”.
Queensland Hydro was asked if ‘tolerance’ was the highest bar it could aim for with local communities.
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