Palaszczuk deal conceals failed hydro project report
A secret confidentiality deed has blocked public access to documents about Queensland's failed $12bn pumped hydro project that allegedly contaminated farmers’ water supply.
An extraordinary wall of secrecy, created by the former Queensland Labor government, has blocked the public release of internal documents into the failed pumped hydro project that has allegedly contaminated the water supply in a major farming community.
The documents, relating to the now abandoned 5GW Pioneer-Burdekin pumped hydro energy storage project in central Queensland, are part of a trove of material that could offer insight into its collapse, the waste of hundreds of millions of dollars and possible environmental damage through engineering works.
But the public release of the documents has been prevented by a highly unusual and, in itself, secretive “deed” of confidentiality struck between the Palaszczuk government and the taxpayer-owned Queensland Hydro, which it set up to develop the project.
A months-long investigation by The Australian revealed on Saturday that the project allegedly contaminated the landholders’ water supply in the Pioneer Valley, fed by a labyrinth of underground aquifers, through geotechnical drilling undertaken in 2023 and 2024.
Some landholders can no longer drink from their wells and are restricting irrigation of crops after dangerous levels of aluminium, iron, manganese and E.coli bacteria were found in their water supply.
Privately engaged hydrogeologists have linked the drilling in the valley, 70km west of Mackay, to the contamination.
On Sunday, the Crisafulli government, which cancelled the Pioneer-Burdekin after its election win in October last year, said it was now reviewing water tests and reports “to determine the next appropriate steps”.
Local farmers have also alleged that Queensland Hydro has failed to release the results of water tests it had conducted on their land.
The project, which premier Annastacia Palaszczuk announced in 2022 as a part of $62bn renewables rollout plan to shut the state’s coal-fired power stations and meet new emissions targets, was touted as the “largest pumped hydro storage in the world”.
An assessment of the project, ordered in 2023 and conducted by Queensland Hydro, concluded the project was “commercially unviable” and likely to cost at least twice the initial $12bn construction estimate.
The “Detailed Analytical Report” was originally scheduled to be completed in June last year but the report was delayed, without explanation, until after the state election.
A Right to Information request was submitted by The Australian in March this year seeking correspondence in 2023 and 2024 about the assessment of the project between Queensland Hydro and Queensland Treasury, which was the organisation’s sole shareholder.
But only two pages of correspondence, detailing the request by Queensland Treasury to Queensland Hydro for the assessment, were released.
An RTI officer, in a letter to The Australian, said a further 22 pages of documents could not be released because it “would breach an obligation of confidence”.
“The state of Queensland acting through Queensland Treasury entered into a deed with Queensland Hydro Pty Ltd,’’ the letter to The Australian said.
“This deed contains a confidentiality clause that requires both parties to keep certain information confidential, including the terms of the deed and confidentiality clause itself.
“As such, I am unable to discuss the content of the deed and the confidentiality clause in any detail.’’
It is understood the majority of documents related to the project fall under the secrecy contract.
When contacted last week, Ms Palaszczuk refused to discuss any details of the project or how it was set up under her government.
But she said: “But if there is any concern about contamination, it needs to be properly investigated.’’
Local farmer Joe Bugeja, who has three properties in the Pioneer Valley with contaminated water, has alleged Queensland Hydro withheld the results of water tests it conducted on his land.
“Queensland Hydro did a water census of existing wells and waterways in the valley before they did the drilling, including on one my properties,’’ he told The Australian.
“I was present when it was done and I was assured then, and multiple times after, that I would be given the results.
“But I still haven’t been given them.’’
Mr Bugeja this year commissioned an investigation by a hydrogeologist and groundwater scientist, who recently delivered preliminary findings in a draft report, seen by The Australian, that linked the contaminated water in his properties to drilling for the project.
In one instance, the draft report alleged that drilling fluid had leaked into the soil and later migrated to a nearby well used as a source for drinking.
“This capture of affected groundwater has resulted in the contamination of groundwater at the Mansells Well,’’ the report said.
Video footage and pictures, supplied by Mr Bugeja, show the well covered in a black substance.
The alleged contamination has been contested by Queensland Hydro.
It has blamed rainwater run-off for the alleged contamination after inspecting one of the worst-affected properties.
In a statement, Treasurer and Energy Minister David Janetzki said the revelations by The Australian were taken seriously.
“These reports have raised serious concerns about the planning failures, ‘belated’ geotechnical work and political deception associated with the Pioneer-Burdekin pumped hydro energy storage project, which underpinned the former Labor government’s Energy and Jobs Plan,’’ he said.
“In light of these concerning revelations, further work will be undertaken to carefully consider these matters, including analysing previous reports regarding potential underground water contamination, to determine the next appropriate steps.”
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