Several work contracts awarded for $14.2bn Borumba Pumped Hydro Project

Several work contracts have been awarded for the $14.2 billion Borumba Pumped Hydro Project in Queensland, marking a significant milestone in the delivery of the 2,000MW renewable energy project. 

This is a major step forward in the development of a long-duration energy storage that will enable Queensland to reliably transition to a future clean energy system. 

“Pumped hydro is unquestionably the right technology to enable Queensland’s clean energy transition. 

“We are delighted to be partnering with Australian and international experts with proven global experience that will be used to deliver the Borumba Project. They are aligned with our desire to deliver safe and reliable reservoirs and transformational long-duration pumped hydro assets for Queensland,” Queensland Hydro CEO Kieran Cusack said. 

The Water2Wire Joint Venture has been appointed as the project’s Dams Designer Delivery Partner and will be responsible for engineering and design of the seven proposed dams – including six new dams to form the upper reservoir and one new dam wall and spillway immediately downstream from the existing Borumba Dam. 

The replacement of the dam wall will help increase capacity at Lake Borumba to provide security for the proposed energy storage scheme. 

The Water2Wire Joint Venture – comprised of leading engineering and design firms GHD, Mott MacDonald and Stantec – has been awarded two contracts with a total value of $40 million. 

“The Water2Wire Joint Venture is honoured to be selected as Dams Designer for the Upper and Lower Borumba Dams, bringing global expertise to this local project. 

“In addition, many of our Water2Wire team live and work regionally, which will help build knowledge and deliver lasting benefits to local communities, as well as the wider economy. 

“We’re excited and ready to partner with Queensland Hydro on the Borumba Pumped Hydro Project, a milestone moment in the state’s transition towards a renewable energy future,” Water2Wire Borumba Pumped Hydro Project Director and Market Leader Mark Cordell said. 

“Together with our partners, we are incredibly excited to leverage our engineering expertise to support the delivery of this landmark project. It is fantastic to be involved in a project that will play a major role in supporting Queensland’s carbon reduction goals. Our Water2Wire Joint Venture looks forward to working alongside Queensland Hydro to help create an important legacy for the local region,” Mott MacDonald Major Projects Director Australia Peter Josey said. 

“We are thrilled to continue Water2Wire’s long-standing and esteemed partnership with Queensland Hydro to collaboratively deliver the Borumba Pumped Hydro Dams and scheme, ensuring sustainable renewable energy infrastructure, lasting benefits and opportunities for Queensland,” Water2Wire Joint Venture representative and GHD Operations Manager South Queensland Craig Berry said. 

The joint venture between Swedish company AFRY and Australian form Aurecon has been awarded the $39.9 million Pumped Hydro Energy Storage (PHES) Design Services contract. 

The AFRY-Aurecon Joint Venture will undertake the delivery if the front-end engineering design documentation that will focus on the technical elements of the pumped hydro scheme itself – such as the interplay between the turbines, cavern design, tunnel waterway design, and other equipment. 

This joint venture will also assist Queensland Hydro in the procurement of both the PHES Delivery and Original Equipment Manufacturer (OEM) Delivery partners. 

“With AFRY’s vast experience in pumped storage design, we are uniquely positioned to support Queensland Hydro in the successful implementation of this critical infrastructure for the benefit of Queensland’s communities. This project underscores AFRY’s strong legacy in hydropower and reinforces our commitment towards a more sustainable society,” AFRY Vice President Hydropower Asia/Pacific and Country Manager Australia Knut Sierotzki said. 

“As an Australian-headquartered company, Aurecon is proud to be supporting Queensland’s renewable energy ambitions, alongside our partner AFRY, adding to our long history of collaborating locally and globally across industry and government to deliver renewable energy infrastructure firsts at scale,” Aurecon Energy – Australia Managing Director Paul Gleeson said. 

Queensland Hydro has also awarded a $111 million contract to Decmil – a wholly owned subsidiary of Macmahon Holdings – to design and build two temporary workers’ camps near the Borumba Pumped Hydro Project site. 

Each of the state-of-the-art temporary workers’ camps will house up to 336 workers and will feature a wellness room, gym facility, running track, social room and laundry facilities. 

Not only will the temporary camps provide infrastructure that will make workers feel at home, but it will also help mitigate pressure on housing availability in the townships near the project site. 

Two camps will be initially built to accommodate the immediate needs of the project’s workforce, and the two temporary workers’ accommodation camps are going to be built at the same location afterwards. 

The staged delivery approach for the camps ensures impacts on the community are reduced now and into the future as the workforce grows. 

“We are pleased to secure this new, strategically aligned work and look forward to continue building our relationship with both the Queensland Hydro team and the broader community as we deliver the new workers’ accommodation at the Borumba Project. 

“Accelerating growth in our civil infrastructure business is a priority for Macmahon and a key component in creating more scalable and diversified business,” Macmahon Holdings CEO and Managing Director Michael Finnegan said. 

Borumba Pumped Hydro Project map (source: Queensland Hydro)

Three south-east Queensland companies have also been awarded work contracts to undertake essential surface-level geotechnical drilling. 

The drilling contracts – with a combined value of $25 million – have been awarded to GeoDrill Australia from Chevallum, Tier 1 Drilling from Morayfield and SJ Drilling from Jimboomba. 

Drilling is subject to Queensland Hydro securing necessary regulatory approvals for the works. 

“This project will not only grow our team by 30 new members but also contribute to the local economy and the clean energy transition. Our expertise in geotechnical drilling aligns perfectly with the needs of this project, and we’re eager to support Queensland’s shift towards a sustainable energy future,” GeoDrill Australia & GD Water Solutions Managing Director Thomas Partleton said. 

“Tier 1 Drilling Australia is excited to be a part of the Borumba Pumped Hydro Project working toward building a cleaner future. Our experience and expertise in the drilling industry will mutually benefit success as well as benefit our company supporting the local community,” Tier 1 Drilling Australia Managing Director Tyson Meyers said. 

“Having completed several previous drilling campaigns for the Borumba Project, we are pleased to be selected to continue our involvement in this exciting and challenging project,” SJ Drilling Director Julian Irons said. 

Lastly, Queensland Hydro has chosen SYSTRA to carry out Underground Technical Services and Management (Underground TSM) services to support the construction of exploratory tunnels for the Borumba Pumped Hydro Project. 

This contract award is part of the Exploratory Tunnelling and Drilling Works (ET&D) Contractor’s scope of works, which will include designing and building two access tunnels as well as site-based works that will commence in the first half of 2025, subject to regulatory approvals. 

“We’re excited to be partnering with Queensland Hydro on what will be a cornerstone in Queensland’s clean energy future. Providing sustainable and reliable energy storage, the Borumba Project is a vital part of Queensland’s energy transition. 

“Our team are really looking forward to working collaboratively with Queensland Hydro, the exploratory tunnels contractor and other project stakeholders to ensure the project gets into the ground in the right way,” SYSTRA Executive Director Tim Brown said. 

The Borumba Pumped Hydro Project will deliver a 2,000MW pumped hydro energy storage system at Lake Borumba near Imbil. 

The overall project is proposed to include: 

• A new dam wall 300 metres downstream of the existing Borumba Dam wall to increase the storage capacity of Lake Borumba (lower reservoir) 

• Main dam wall and saddle dams to form an upper reservoir 

• Underground power station, pump turbines and other infrastructure 

• Underground tunnels including water tunnels to transfer water between the upper and lower reservoirs, cable and access tunnels 

• Electric switchyard for connection between the power station and the transmission network 

• Supporting infrastructure (temporary and permanent) including access roads, maintenance buildings, treatment plants, spoil areas and laydown areas, construction camps and quarries and/or borrow pits 

Major construction on the multi-billion-dollar project is expected to commence next year. 

The Borumba Pumped Hydro Project is estimated to create 2,360 full-time equivalent jobs during construction and up to 30 full-time equivalent jobs once operational. 

“This is a huge milestone for one of the most important renewable energy projects anywhere in Australia. 

“We’re bringing together local knowledge and global expertise to deliver what will be a nation-defining project to provide cheaper, cleaner and more secure electricity to all Queenslanders. 

“The transition to renewable energy will see millions of dollars in regional development and investment that will support local economies, provide opportunities for community infrastructure advancements and create thousands of jobs for Queenslanders. 

“The Miles Labor Government’s plan for renewable energy, delivered through projects like Borumba Pumped Hydro, mean more local jobs, cheaper electricity and a cleaner environment,” Minister for Energy and Clean Economy Jobs Mick de Brenni said. 

Source: Queensland Government – Media Statements; Queensland Hydro (1, 2, 3, 4, 5, 6); Queensland Government – State Development and Infrastructure