Labor’s pumped hydro scheme costed by Treasury at $36.77bn

Labor’s Pioneer-Burdekin Pumped Hydro project scrapped by the LNP would have cost Queenslanders an eye-watering amount, secret modelling reveals.

New State Development, Infrastructure and Planning Minister Jarrod Bleijie signs a letter to Queenslanders confirming the cancellation of Pioneer-Burdekin Pumped Hydro. Picture: Facebook

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Labor’s Pioneer-Burdekin Pumped Hydro project would have cost Queenslanders an eye-watering $36.77bn, secret Treasury modelling has revealed.

The Courier-Mail can reveal Treasury analysis provided to the new LNP state government puts the price of the controversial renewable energy project at $36.77bn.

It is five times what the state has allocated over the next 15 years to upgrade the Bruce Highway, and enough to fund $1000 in energy bill rebates for 14 years.

Queensland Treasury found the present value – if built today – there was a 90 per cent chance the Pioneer-Burdekin Pumped Hydro project would cost near $24.75bn.

However, Queensland Treasury analysis forecasted the project would cost $36.77bn by the time construction starts and it was operational near 2035.

Treasury’s assessment of the project cost in present value was less than the $27.67bn estimate in a Queensland Hydro Detailed Analytical Report.

The LNP government moved to scrap the project days after coming to power, and attacked Labor for keeping the cost from Queenslanders.

Newly minted State Development, Infrastructure and Planning Minister Jarrod Bleijie labelled the scheme the greatest political con job in Queensland’s history.

“It is implausible the Labor caucus could even think about endorsing Steven Miles and Cameron Dick as their leadership team,” he said.

“This was their signature project and should never have gotten out of the starting gates.

“They lied black and blue to Queenslanders right before an election and hid the true costs from taxpayers in a cost-of-living crisis.”

Then premier Steven Miles faces Eungella residents in April.

In September 2022 then premier Annastacia Palaszczuk said the project would cost $12bn, but her successor Steven Miles said in February it would likely be higher.

A spokesman for the Labor opposition said it was unaware of the $36bn figure.

“In the previous term of government Queensland Treasury never received the detailed analytical report for the Pioneer-Burdekin Pumped Hydro Project, as a result Queensland Treasury did not provide a finalised cost of the project,” he said.

While in government Labor declined to speculate on the true cost of what would be the world’s largest pumped hydro scheme but insisted, whatever it was, it was worthwhile.

Mr Miles confirmed during last month’s election campaign Queensland would borrow to fund the project, arguing the financial return would benefit the state.

“They are income-generating assets that will generate a return to Queenslanders basically forever,” he said.

“The capital cost, you’re right, is high, but the operational cost is very, very low, and the revenue from them is very, very high.”

The five-gigawatt project proposed was slated to be built in the Pioneer Valley about 70km west of Mackay.

Property records revealed, as of early September, Queensland Hydro had bought 56 properties at a cost of $45.6m — more than half of the 80 properties it has flagged as needed for the project.

Now, community members who have sold their properties will be offered the first chance to buy it back.

As the centrepiece of Labor’s Energy and Jobs Plan, the project would have allowed 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.

Premier David Crisafulli in Mackay on Sunday

PREMIER PUMPS UP SMALLER SPOTS

Premier David Crisafulli has pledged to release the locations and costings for his smaller pumped-hydro projects as soon as bureaucrats have done the work.

Mr Crisafulli visited Eungella, near Mackay, to “say sorry” on behalf of the state government for the former Labor government’s progression of the Pioneer-Burdekin Pumped Hydro project.

The LNP leader faced criticism in last month’s election campaign for failing to provide details on how he would instead deliver smaller hydro power stations.

Mr Crisafulli said the public service was now working on those plans.

“When that is concluded, we’ll be open and honest and transparent with Queenslanders and look to find ways to make sure that projects can occur without communities being treated like doormats,” he said.

“We are serious about progressing Borumba and we have a laser-like focus on making sure that it is as affordable as it can be.”

“The first is Borumba … that’s a significant one and we’ll allow the department to do the work and make sure that it’s done in an environmentally respectful way and also at a way that Queenslanders can afford.”

The 2000-megawatt Borumba Pumped Hydro project, west of the Sunshine Coast, is tipped to cost $14.2bn, however Mr Crisafulli said the LNP would soon release the costings.