Frequently Asked Questions
Project
What is being proposed as part of the Capricornia Energy Hub?
The Capricornia Energy Hub is a proposed pumped hydroelectric energy storage facility (PHES), proposed wind farm and proposed solar farm.
The project team is prioritising progressing the PHES and is currently undertaking field, environmental and technical studies on the proposed PHES.
Where is the project located?
The project is located on two large rural landholdings in the Mackay Hinterland on Widi country, downstream of Sunwater’s existing Eungella Dam. The land has been used for grazing cattle since the 1880s.
Is the project publicly funded?
The project is privately owned and is pursuing a commercial power and capacity usage arrangement with a government owned corporation.
What are the approvals processed for each part of the Hub?
The Capricornia Energy Hub Pumped Hydroelectric Energy Storage and Transmission project is undergoing a coordinated approval process, led by the Office of the Coordinator General (OCG), which integrates both state and federal requirements. Under the Queensland State Development and Public Works Organisation Act 1971, the project will be assessed with an environmental impact statement (EIS). Concurrently, it has been classified as a Controlled Action by the Federal Government under the Environmental Protection and Biodiversity Conservation (EPBC) Act.
Throughout the process, there will be multiple opportunities for the local community, general public and stakeholders to provide both formal and informal feedback. We will keep the community informed about the opportunities for formal submissions, including updates related to the Draft Terms of Reference for the EIS.
For detailed information on the Queensland Government’s EIS process, refer to the fact sheet here: https://www.statedevelopment.qld.gov.au/__data/assets/pdf_file/0011/32222/eis-fact-sheet.pdf
Should the wind and solar farm components of the Capricornia Energy Hub be pursued, they will follow the appropriate local and state government approval processes, with referrals to the Federal Government under the EPBC Act as required.
Who is responsible for overseeing and regulating this project?
The oversight and regulation of this project falls under the jurisdiction of several governmental bodies at different levels. Locally, regulatory responsibilities often lie with the Mackay Regional Council and Isaac Regional Council, who will oversee zoning, land use, and local environmental regulations. Additionally, state level oversight is managed by the Office of the Coordinator General, ensuring compliance with environmental standards and permitting processes.
On a national scale, the Australian Energy Regulator (AER) has oversight regarding aspects such as energy generation, distribution and market operations and the Department of Climate Change, Energy, the Environment and Water manages matters of national environmental significance.
Our project team works closely with these authorities to ensure full compliance with all regulatory requirements, fostering transparency and accountability throughout the project’s development and operation.
Is the project connected to any other projects or proposed projects?
The Capricornia Energy Hub is being developed separately to any other proposed or government projects.
How does Pumped Hydro work?
Pumped Hydroelectric Energy Storage (PHES) is a type of energy storage – kind of like a battery. In the case of the Capricornia PHES, water will pass through an underground tunnel down a steep drop, passing through a turbine, then the water is pumped back up to the upper reservoir to restart the process. The different elevation and force of the water passing through the tunnel and the turbine generates power.
Unlike other forms of power, PHES can be turned on and off relatively quickly and can operate across a range of weather conditions, meaning it can operate at times when it is needed most.
In doing so, Capricornia PHES will contribute to a secure, reliable and affordable energy system in Queensland.
How will you access the site for construction and operation?
We are currently in the process of finalising our transport study which will provide us with a short list of feasible transport routes. To build a project of this size requires large machinery which will be delivered via the Port of Mackay or Port of Townsville. At this stage of our assessment, the large equipment will come from the Port to Nebo via the Peak Downs Highway and then into the project site via the Suttor Development Road and Turrawulla Road. We have no current plans to bring large pieces of machinery through Eungella township or Eungella National Park.
Final transport routes are subject to approval from the State Government and local Councils.
Where will the work camp be located?
The final location of the work camp will be confirmed as part of our Draft Environmental Impact Statement (EIS) and will be subject to extensive consultation. We are currently exploring a range of options. The temporary camp will need to be located near the project site and will be in position for the full duration of the construction period which we anticipate to be approximately five years.
How will the project connect to the existing transmission line?
.The Capricornia PHES will connect to the existing high voltage transmission line from Strathmore to Nebo via a substation and 18km of new transmission line. The transmission line route has not yet been finalised
Environment
What environmental studies did you do, and when did they start?
Initial environmental and field studies for the project’s Business Case and Conceptual Design and Prefeasibility Study have been completed. Studies commenced in 2019 and continue today, to inform the Feasibility Study and Draft Environmental Impact Statement (EIS) for the project.
What water catchment is the project in?
The project area is located within the Bowen River sub-catchment within the Burdekin Basin. The PHES will comprise two reservoirs: the upper being a valley fill reservoir and the lower being an in-stream reservoir in the Broken River. There will also be a powerhouse, tunnels or pipes linking the reservoirs and the powerhouse, and a transmission line and substation.
Have you undertaken any floral and fauna surveys?
We have completed a range of pre-wet, post-wet, terrestrial (land), aquatic (water), desktop and field surveys as part of the development of the project since 2019. Additional surveys are being completed and the results will inform our Draft Environmental Impact Statement (EIS).
What measures will be in place to mitigate environmental impacts?
We are committed to minimising environmental impacts throughout the lifecycle of the project. A range of environmental monitoring strategies will be employed to measure any effects on environmental values, and these will be specified in the Draft Environmental Impact Statement (EIS). Community Engagement and social impact assessments guide our efforts to enhance local economies and minimise social disruption. Our adherence to regulatory standards and commitment to long-term sustainability will ensure that the project contributes positively to both the environment and the community.
Will the reservoirs be suitable for public recreational use?
The land on either side of the reservoirs is privately owned and is not visible or accessible for public recreational use. This will remain unchanged.
Eungella Dam is the nearest public recreational facility, owned and managed by Sunwater. The project will have no impacts on the Eungella Dam.
Community
Do you have support from the Traditional Owners?
We reached and signed an Indigenous Land Use Agreement (ILUA) with the Widi people in 2022 and the ILUA has now been formally registered.
We will continue to work with Widi as the project progresses.
How are you engaging with the local community on the project?
We are committed to transparent, meaningful and regular consultation with the broader community in and around the project location. To date, we’ve held Community Information Sessions in Eungella, Nebo and Collinsville and have committed to holding more town hall meetings, community group briefings and mobile offices when more information about the project is confirmed. Community events and information sessions will be advertised in advance on our website and social media channels. Residents will receive a flyer in their letterbox.
Questions about the project can be made to our project team via our email address [email protected], our website or our project phone number 1800 979 686. You can also subscribe to our project email updates or follow us on Facebook.
What are the benefits of this project for our community?
We aim to develop a project which benefits the region, in close consultation with the local communities. As our energy system is changing and moving away from coal-fired power, the project will also help create new local jobs in the growing renewable energy industry. Capricornia PHES will create opportunities for local businesses and contractors – approximately 600 jobs during peak construction, and 65 local jobs during operation. Capricornia PHES will play an important role in Queensland’s future energy mix and help contribute to secure, reliable, and affordable energy. Projects like ours enhance the stability and reliability of the grid by providing large scale energy storage. For the community, this means less blackouts, brownouts, and a more consistent supply of electricity for homes, businesses and essential services.
What are the opportunities for the local community to give feedback on the project?
The community will have multiple occasions to provide formal and informal feedback on the project.
We will update the community through our website, email, targeted letterbox drops, and our Facebook page.
Outside of the formal feedback processes for project approvals, our project team are always open to answering questions and can be contacted via our email address [email protected], our website or our project phone number 1800 979 686. You can also subscribe to our project email updates or follow us on Facebook.
How many jobs will this project create locally, and what types of skills will be needed to fill these positions?
The project is expected to create 600 jobs during peak construction and 65 local jobs during operation, some of which may be located outside of the local area. A comprehensive Local Jobs Guide outlining core skills and competencies for these roles will be published at a later stage.
Does applying for and receiving funding from the Community Benefit Fund enable the project to obtain a social licence to operate?
We are committed to transparent, meaningful and regular consultations and aim to develop a project which delivers real benefits to the local community – not only in terms of economic opportunities, but also through our Community Benefit Fund.
The Community Benefit Fund is separate from the regulatory approval process for the project. Regulatory decisions are made based on rigorous assessments of environmental impact, compliance with legal standards, and community engagement. A project’s financial contributions do not influence these decisions, which are guided by transparency and adherence to regulatory frameworks.
Equally, it is not a requirement for applicants to support the project if they want to access the Community Benefit Fund. In other words: If a community group accepts funding from Capricornia’s Community Benefit Fund, it is in no way an indication of the group’s support for Capricornia.
For more information on the Community Benefit Fund, its Terms of Reference and the application process please visit our website.