Queensland Hydro is going ahead with exploratory works for the Borumba Pumped Hydro project, south of Gympie, after approval from the federal Department of Climate Change Energy Environment and Water late last year.
This is pending state approvals, after the Crusafulli Government was elected in 2024 and announced while it was open to a smaller version of Borumba Pumped Hydro, it would review the business case.
IMAGE supplied by QH
Federal Environment Minister, Murray Watt, says the exploratory works are subject to nearly 70 strict conditions to minimise its potential environmental impacts.
The conditions include limits on clearing, the selection of an offset site, the implementation of species management plans and an offset management plan.
Feds use the word ‘if’ Borumba Pumped Hydro proceeds
Minister Watt says ‘if’ the project proceeds, the 48,000-megawatt per hour facility will be the second largest pumped hydro facility in Australia.
The state government handed the Queensland Investment Corporation (QIC) responsibility for delivering BPH after its budget blew out from $14 billion to $18 billion.
Energy commentators believe the state government is aiming for private sector investment for the project to proceed.
Borumba Pumped Hydro sign at one of the site entrances. IMAGE by Vivienne Wynter
In the most recent update, the QH website says: ‘Our current focus is delivering a refreshed business case and commercial assessment for the proposed Borumba Project that is aligned to the Queensland Government’s five-year energy roadmap strategy and meets the State’s future energy needs. The refreshed business case is expected to be completed by mid-2026.’
Queensland Hydro continues to undertake early works onsite, technical investigations, project planning, design and community work. This includes site preparations and construction of temporary accommodation camps to house its workforce.
Changes at the top
Queensland Hydro CEO Kieran Cusack moved on in June 2025 and executive chair Mark Irwin was appointed interim CEO.
Queensland Hydro interim CEO Mark Irwin. IMAGE supplied by QH
Mr Irwin says Queensland’s future energy mix needed a diverse range of technologies and long-duration pumped hydro offered the large-scale storage needed to support the transition.
‘The Borumba Pumped Hydro Project is a critical component of Queensland’s future energy mix and Commonwealth regulatory approval is a significant step forward in its development,’ he said.
‘The proposed exploratory works will support the revised business case for the Borumba Project.’
Mr Irwin said if the Borumba project proceeded to main works construction, this phase would require further federal and state government approvals.
QH continues to earn social licence with community benefits program
Meantime, Queensland Hydro this week announced a grant of $700,000 through its Community Benefits Program towards streetscape upgrades in Kilcoy.
The funding will enable Somerset Regional Council to complete concept designs for the Kilcoy Streetscape Revitalisation Master Plan.
Queensland Hydro executive chair Mark Irwin said QH was committed to the region, even as it undertakes a renewed business case for the proposed Borumba Pumped Hydro project.
L-R Mark Irwin (Queensland Hydro Executive Chair), Cr Jason Wendt (Mayor Somerset Regional Council), Andrew Johnson (CEO Somerset Regional Council) and Geoff Scott (Queensland Hydro EGM Delivery) in Kilcoy last August. IMAGE supplied by QH
‘Kilcoy and the surrounding townships will play an important role as Queensland Hydro commences exploratory works for the Borumba Project in the coming months,’ Mr Irwin said.
‘This funding acknowledges the potential impacts on the community and ensures we leave a positive legacy behind.’
Community Grants Program now open
QH also announced this week that community organisations in the Somerset and Gympie regions could receive up to $10,000 each for local initiatives in the latest round of Queensland Hydro’s Community Grants Program.
Opening Tuesday 3 February 2026, the Community Grants Program is designed to support initiatives that are meaningful to local communities around the Borumba Pumped Hydro Project.
Community organisations are invited to attend an information session on Tuesday, 10 February 2026.
Details are on the Queensland Hydro website. Applications close on Monday, 2 March 2026.
IMAGE at top of story is of existing Borumba Dam wall and supplied by QH.
