Pioneer-Burdekin pumped hydro could cost up to $24bn early estimates show

The state government’s centrepiece renewable energy project could cost up to $24bn based on the reliability of early estimates.

The state government’s centrepiece renewable energy project could cost up to $24bn, based on the reliability of early estimates.

It comes as the government-owned corporation spearheading Queensland’s pumped hydro future confirmed it undertook secret studies dubbed Project Kruger to scope out other potential sites for the controversial project.

Taxpayers are still in the dark on how much the 5GW pumped hydro project west of Mackay — the largest in Australia — is set to cost, amid ongoing efforts to finalise a detailed analytical report.

But Energy Department director-general Paul Martyn confirmed the early estimate was based on concept studies done by veteran engineer firm SMEC and was rated a class-five estimate,

defined by cost engineering guidelines as having an expected variation range of up to +100 per cent and -50 per cent.

This equates to Pioneer-Burdekin pumped hydro costing up to $24bn or as low as $6bn, based on the available early estimates.

“This is a typical gateway approach to infrastructure development and is consistent with the Queensland Government’s business case development framework, which outlines a staged approach to investment decision making,” Mr Martyn said.

Queensland Hydro CEO Kieran Cusack had also warned, at estimates, that the $12bn price tag was based on very early estimates, and said it was not possible to provide a firmer figure until the detailed analytical report was complete.

Deb Frecklington at estimates. Picture: Liam Kidston

Queensland Hydro CEO Kieran Cusack

Mr Cusack said the report, once completed at some point in 2024, would be about 6000 pages long inclusive of intricate environment and engineering details.

The mega-project is the largest of its kind and is slated to be built near Mackay. It is central to hitting the government’s legislated renewable energy targets but is still subject to investigations and has not received sign-off or funding for construction.

Mr Cusack, under questioning by Opposition energy spokeswoman Deb Frecklington, confirmed Queensland Hydro had scoped out other sites through its secretive Project Kruger, which even Mr Martyn as chair of the organisation was not told about.

Mr Cusack said Project Kruger finalised studies on various potential pumped hydro sites that Powerlink had previously identified.

The state government has been adamant the Pioneer-Burdekin site provides the best prospects for its pumped hydro plans.

But Mr Cusack indicated there were thousands of potential sites.

“Is it the case that Project Kruger is finding the alternative, should the government (find out) they can’t proceed with Pioneer-Burdekin?” Ms Frecklington asked.

Mr Cusack said: “The mandate of Queensland Hydro is crystal clear, our role is to develop the Borumba pumped hydro project and the Pioneer-Burdekin pumped hydro project for the government.”

Ms Frecklington said it was “absolutely outrageous” that Labor thought it could get away with providing “zero details” about its biggest election commitment.

The LNP has previously revealed it would look to build smaller pumped hydro projects and scrap the Pioneer-Burdekin proposal.