A company owned by Malcolm and Lucy Turnbull has won a tender to work up plans for two pumped hydro projects in the NSW Hunter region, promising to deliver long duration storage totalling more than 1,400MW for eight to 12 hours, and provide critical firming capacity as the state quits coal.
WaterNSW said on Monday it has awarded a development agreement to Upper Hunter Hydro (UHH) to investigate the two large pumped hydro projects “with an opportunity for integrated wind energy,” using WaterNSW land and reservoirs in the Hunter Valley.
The agreement gives UHH access to Glenbawn Dam, 10km east of Scone, and Glennies Creek Dam, 28km north of Singleton, for investigations to develop the pumped hydro project proposal through the feasibility and planning stages.
The two proposed pumped hydro projects are being led by Upper Hunter Hydro, a company registered in early 2022 under the ownership of Wilcrow Pty Ltd – a Turnbull family entity that has traditionally held its pastoral properties in the Upper Hunter.
During the initial project stage, WaterNSW says UHH will seek to secure all necessary approvals and consent for their projects and, if successful, will construct and operate the projects, which could generate 1,400 construction jobs and 80 ongoing operations roles.
“Lucy and I have been landowners and part of the Upper Hunter community for over 40 years and are acutely aware of the need to create sustainable, long-term industries that support the economic diversity of the region as the world transitions away from fossil fuels,” Malcolm Turnbull said in a statement on Monday
“These projects are part of that solution.
“Australia currently has all the tools to deliver a zero-emission energy reality. We don’t need to invent new technologies, we have all the resources we need; the one resource we don’t have is time.
“By deploying a mix of variable renewable energy including wind and solar, supported by pumped hydro storage it is possible to transition away from coal and meet our climate targets.”
Turnbull was one of the driving forces behind the controversial Snowy 2.0 pumped hydro scheme when he was prime minister and as president of the International Hydropower Association remains a strong supporter of the technology.
Turnbull says there is potential for wind energy as part of the projects, but this would be subject to talks and any agreements with local landholders.
Turnbull did not want to be drawn into a timeline or potential cost, noting “I’ve been caught out on that before”, possibly in reference to Snowy 2.0. But he said pumped hydro was important, particularly as the technology costings favoured solar over wind.
“If you don’t get started they never happen,” Turnbull told RenewEconomy. “Renewables development is not for those wanting instant gratification …. but it is dawning on the market that we are going to need a lot more long duration storage than we thought.”
Turnbull says UHH will proceed to a detailed design phase that incorporates “wide ranging community and stakeholder engagement” as well as “thorough environmental assessment,” to secure planning approvals and backing from investors.
Apart from Snowy 2.0 and the Kidston pumped hydro project in north Queensland, pumped hydro has remained hard to do, with various Coalition support schemes failing to get any projects across the line, and eight-hour batteries stealing the show in long duration storage tenders in NSW.
Joining Turnbull as a director of UHH is Roger Gill, his predecessor as president of the IHA, and who has a renewables pedigree including stints at Pacific Hydro and Hydro Tasmania.
“UHH has a strong environmental sustainability focus and together with proven hydropower technology the projects will bring strong benefits to the region and the grid,” Gill said on Monday.
WaterNSW CEO Andrew George says the organisation will continue to assess sites across its portfolio to identify further opportunities for projects like those being proposed by UHH.
“We have an opportunity to not only assist the transition to a renewable energy power grid, but to also assist in the creation of jobs, support the local community, and generate revenue to put downward pressure on water costs for customers,” George said on Monday.
“Our program fulfils an action of the NSW Pumped Hydro Roadmap of bringing forward private sector investment in pumped hydro schemes,” he said.
