What’s next for $18bn Borumba Dam pumped hydro plan

New questions about the future of a proposed $18bn renewable energy project outside Gympie have emerged following months of turmoil.

Images from the Initial Statement Advice report into the proposed Borumba Dam pumped hydro plant.

A new business case is in the works for a controversial $18bn proposed pumped hydro project near Gympie after a turbulent eight months which included delays, key staff departures and a change in management.

The controversial Borumba Dam project, announced in 2022 and originally expected to be running by 2030, is facing new questions amid the extensive period of turmoil.

In December 2024 the project’s expected costs ballooned from $14bn to $18bn.

In April it was announced management of the project would transfer from Queensland Hydro to the Queensland Investment Corporation, a move which is now complete.

The move was made amid claims the project was three years behind schedule.

A new business case is in the works for a controversial $18 billion proposed pumped hydro project near Gympie after a turbulent eight months which included delays, key staff departures and a change in management.

The project is still awaiting federal environment approvals.

On Monday it was reported by The Australian delays in delivering the project led to the LNP state government finding $1bn in savings in its 2025 budget.

It was reported only $110.5m of a budgeted $935.9m was spent on the project in the 2024-25 financial year.

This was reportedly the result of delays caused when the project “failed to meet infrastructure delivery deadlines and the regulatory approvals schedule set down by the former Labor government”.

The 2025 budget has set aside $355.2 million for ongoing exploration works at the dam. Picture: Christine Schindler

The 2025 budget has set aside $355.2m for ongoing exploration works at the dam.

A Queensland Hydro spokesman said the QIC had “extensive experience” with major projects and was “well placed to provide oversight of Queensland Hydro and the Borumba Pumped Hydro Project”.

“A critical focus over the next year is the development of a revised business case for the Borumba Project that delivers value and meets Queensland’s future energy needs,” the spokesman said.

“It is expected that the revised business case will be completed by mid-2026.

“The Borumba Project is also continuing to progress early works onsite, technical investigations, project planning, design and community work while regulatory approvals for exploratory works continue to be progressed.”

Originally published as What’s next for $18bn Borumba Dam pumped hydro plan