Pioneer-Burdekin Pumped Hydro cost to go past estimated $12bn, warns Premier Steven Miles

The Premier says “the cost of building everything has gone up”, paving the way for the world’s largest pumped hydro project to be a significant venture for Queensland taxpayers to fund.

Energy Minister Mick de Brenni this month conceded Pioneer-Burdekin Pumped Hydro might not happen until after the October state election. Picture: NCA Newswire/John Gass

The cost of building Pioneer-Burdekin Pumped Hydro will likely escalate past the estimated $12bn, as Premier Steven Miles indicates the state will still foot the bill for the “critical project”.

The state government was expected to make a final investment decision on the five-gigawatt project by mid-2024, but Energy Minister Mick de Brenni this month conceded it might not happen until after the October election.

The site of the Pioneer-Burdekin Pumped Hydro energy project at Pioneer Valley, about 70km west of Mackay.

Mr Miles, who pledged to reduce emissions by 75 per cent by 2035 and has legislated the target of net zero by 2050, acknowledged the $12bn cost to build the world’s largest pumped hydro project would likely increase.

“The cost of building everything has gone up,” he said.

“I wouldn’t be surprised if that detailed planning work comes back with a higher dollar figure. “We’ve seen an increase in costs in the period between when we released the Renewable Energy and Jobs Plan and so we’ll take all of that into account when we’re making that final investment decision.”

Energy Minister Mick de Brenni this month conceded Pioneer-Burdekin Pumped Hydro might not happen until after the October state election. Picture: NCA Newswire/John Gass

The Premier refused to “make guesses” about the likely cost increase to the project.

“I’m acknowledge that it probably will cost more than we thought at the time that we released that plan, just as just as building just about anything costs more,” Mr Miles said.

“It is a critical project to achieve the level of deep storage that we need to be able to assure industry that they will have certainty of power year round.”

The five-gigawatt project proposed to be built in the Pioneer Valley about 70km west of Mackay, is the centrepiece of Labor’s renewable-energy plan.

It will enable the government to shut down five coal-fired power stations, slash emissions by 75 per cent, and reach an 80 per cent renewable energy target by 2035.