Queensland Hydro awards major contracts for 2GW pumped hydro energy storage project

September 17, 2024
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Queensland’s Wivenhoe PHES plant, which has been in operation since 1985. Image: Queensland State Archives via Flickr / Public Domain.

Pumped hydro energy storage (PHES) developer Queensland Hydro has revealed a flurry of contracts today (17 September) to help progress the development of its 2GW Borumba project in Australia.

The developer has secured contracts with AFRY-Aurecon Joint Venture, Water2Wire Joint Venture, and SYSTRA, aiming to provide the necessary inspections and design plans for the utility-scale project.

Located near Imbil, northwest of the Sunshine Coast in Queensland, the Borumba Pumped Hydro Project will be capable of dispatching 2GW and storing up to 24 hours of energy. It is currently targeting first power by 2030 and recently opened a public consultation phase to help shape the project’s plans.

Fully developing the project is expected to cost AU$14.2 billion (US$9 billion).

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Water2Wire employed as Dam Designer

Queensland Hydro has employed the services of Water2Wire, a joint venture between engineering and design firms GHD, Mott MacDonald and Stantec, via signing two Dam Design contracts, with both set at AU$40 million.

Water2Wire JV, as the designated delivery partner for the Dams Designer, will lead the engineering and design of seven proposed dams in the project. These will include six new dams to create an upper reservoir and a new dam wall and spillway downstream from the existing Borumba Dam.

The replacement dam wall will increase Lake Borumba’s capacity and provide security for the proposed energy storage scheme.

Queensland Hydro CEO Kieran Cusack said Water2Wire had proven global experience that will be used to deliver the Borumba reservoirs, and they shared the desire to deliver safe and reliable reservoirs for this once in a generation infrastructure project.

“Water2Wire has consistently shown their expertise in delivering world-class hydropower and dam projects, including the Kidston PHES and many projects abroad. The three companies of the joint venture will bring their significant dams and hydro design experience to our Borumba Project and we are excited to be partnering with them,” Cusack said.

AFRY-Aurecon secures design contract for Borumba Pumped Hydro Project

Swedish-headquartered international engineering, design, and advisory company AFRY and Australian-headquartered international engineering, design, and advisory firm Aurecon have been awarded the PHES Design Services contract for the proposed Borumba Pumped Hydro Project. The contract is worth around AU$39.9 million.

After a competitive tender process, AFRY-Aurecon will deliver the project’s design works. It will also assist Queensland Hydro in procuring the PHES Delivery and Original Equipment Manufacturer (OEM) Delivery partners.

Cusack said: “AFRY-Aurecon JV will advance our front-end engineering design documentation, focusing 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 – ensuring that the Borumba Project is safe, reliable and technically-sound.”

SYSTRA to undergo underground technical services and management services

The final announcement made today regarding Borumba is the decision to employ SYSTRA, a global engineering and consultancy, to undergo the PHES projects’ underground technical services and management services in support of the construction of the exploratory tunnels.

The scope of the Exploratory Tunnelling and Drilling Works (ET&D) Contractor, which the Underground Technical Services and Management (Underground TSM) services focus on, involves designing and constructing two access tunnels. Site-based works are expected to begin in the first half of 2025, pending regulatory approvals.

Queensland Hydro’s executive general manager of delivery, Geoff Scott, said the partnership with SYSTRA would provide critical independent quality assurance to the proposed Borumba Project’s underground drilling and tunnelling programme.

Commenting on the contracts for the Borumba PHES project, Mick de Brenni, Queensland’s minister for energy and clean economy jobs, believes the deals represent a “major milestone for one of the most important renewable energy projects anywhere in Australia”.

“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,” de Brenni added.

17 March 2026
Sydney, Australia
As we move into 2026, Australia is seeing real movement in emerging as a global ‘green’ superpower, with energy storage at the heart of this. This Summit will explore in-depth the ‘exponential growth of a unique market’, providing a meeting place for investors and developers’ appetite to do business. The second edition will shine a greater spotlight on behind-the-meter developments, with the distribution network being responsible for a large capacity of total energy storage in Australia. Understanding connection issues, the urgency of transitioning to net zero, optimal financial structures, and the industry developments in 2026 and beyond.

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