The Queensland government has announced it will invest $50 million (USD 29.88 million) via state-owned energy generator and retailer CleanCo into the proposed Mt Rawdon pumped hydro project to help progress the development towards a final investment decision.
The project – a 50:50 joint venture between gold miner Evolution Mining and an affiliate of advisory firm ICA Partners – involves converting Evolution’s Mt Rawdon gold mine, located about 75 kilometres southwest of Bundaberg, into a pumped hydro facility that is expected to provide up a 2 GW / 20 GWh of renewable energy storage capacity.
CleanCo said in a statement it has committed to working with Evolution and ICA Partners to progress feasibility works, including geotechnical studies, environmental assessments and detailed design.
CleanCo Chief Executive Officer Tom Metcalfe said the project is a “practical, deliverable” energy storage project that can help safeguard reliability of supply in a net-zero future.
“Long-duration energy storage is essential in soaking up excess renewable energy when it’s plentiful and delivering it back into the grid when demand is high,” he said. “Mt Rawdon presents a unique opportunity to repurpose existing mining infrastructure to become part of the long-term solution to securing a renewable energy future for Queensland.”
The investment commitment comes just months after the Queensland government scrapped the proposed 5 GW / 120 GWh Pioneer-Burdekin pumped hydro project planned for the state’s north.
Speaking to the Queensland Energy Club on Tuesday, Queensland Energy Minister David Janetzki said the state’s focus has now shifted to building multiple smaller projects.
“We committed to progressing smaller, more manageable pumped hydro projects, and this fires the starter’s gun on the first of these projects,” he said.
Evolution executive chair Jake Klein welcomed the funding, describing the Mt Rawdon site as an ideal site for pumped hydro with its steep topography, proximity to the grid and well-known environmental and geological footprint.
“The Mt Rawdon Pumped Hydro project is one of the most advanced, lowest capital intensive pumped hydro projects in Australia,” he said.
Image: CleanCo
In addition to the Mt Rawdon funding, Janetzki also announced the government would transfer oversight of Queensland Hydro, the entity charged with delivering the 2 GW / 48 GWh Borumba pumped hydro project, to Queensland Investment Corporation (QIC).
“We’ve made this decision following revelations from Queensland Hydro in December the cost to deliver Borumba had blown out by $4 billion to a total of $18 billion and would take an additional three years to complete,” he said.
“The report also revealed there was less than a 1% chance of Borumba being completed on time for its first planned power in 2030.
“QIC is uniquely placed and experienced to support Queensland Hydro to deliver a proper commercial assessment of delivery options.”
Janetzki also revealed the government would repeal the state’s current renewable energy targets, which he described as “unachievable”, and the legislated emissions reduction targets will be reviewed as part of a new energy roadmap for the state.
The previous Queensland government had set a target of achieving 50% emissions reduction targets by 2030, and 75% by 2035, and phasing out the state’s reliance on coal-fired power by the same date.
The laws also locked in an 80% renewable energy generation target by 2035 and entrenched public ownership of energy assets.
Janetzki said the state government is committed to net zero by 2050 but has committed to repeal the renewable energy targets.
“The legislation, which both contains the emissions and renewables targets, will be reviewed during the course of the year as we develop the energy roadmap,” he said, adding that coal-fired plants will not be closed just to meet the needs of a “media release or brochure.”
“This will be done very methodically and calmly and that review will be undertaken during the course of the year,” he said. “There will be coal generators that operate beyond 2035.”
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