Queensland pauses $18.4bn Borumba pumped-hydro project

The Queensland government has suspended procurement for the $18.4 billion Borumba pumped-hydro project south-west of Gympie. The pause includes halting work on exploratory tunnelling, drilling, and earthworks as the state reviews the project's business case.

Queensland Treasurer and Energy Minister David Janetzki cited concerns over cost escalations in major energy infrastructure, specifically referencing the federal Snowy Hydro 2.0 project, which has seen costs rise from an initial $2 billion to an estimated $22 billion to $25 billion. The Borumba project's own estimates have climbed from approximately $4 billion to over $18 billion.

Designed to provide 2,000 MW of generation capacity and up to 48,000 MWh of storage, Borumba is a significant component of the state's renewable energy strategy. A full business case is expected in the 2026-27 financial year to determine if the project meets fiscal requirements. While procurement is paused, Queensland Hydro stated that geotechnical data collection and economic evaluations will continue.