The Palaszczuk government will commit $14 billion to fund one of Australia’s most expensive renewable energy projects, the Borumba pumped hydro project in south-east Queensland.
It is one of two mega pumped hydro projects the government is relying on to enable it to shut down the state’s five coal-fired power stations by 2035.
Queensland Treasurer Cameron Dick told AFR Weekend that the total cost for the 2 gigawatt Borumba project in the Sunshine Coast hinterland – which will be able to supply 24 hours of continuous energy into the grid – would be $14 billion.
The government will commit $6 billion in equity funding in next week’s budget, and the rest will come from borrowing from state-owned company Queensland Hydro.
Mr Dick said Queensland’s strong economic position post-pandemic had allowed the Palaszczuk government to fund cost-of-living measures, pay down debt and fund key infrastructure, such as Borumba, in next Tuesday’s budget.
“Within nine months of our [$62 billion] Energy and Jobs plan, we are making a substantial investment which we can do because of the strength of our budget and economy,” Mr Dick said.
The Borumba projects is expected to be completed by 2029, while the Pioneer-Burdekin project is not due to be operational until 2035.
