Contractors named for 12 GWh Australian pumped hydro storage site

Malaysian engineer Gamuda and Spanish infrastructure developer Ferrovial have secured the right to finalize an EPC contract for the 750 MW/12 GWh Capricornia Pumped Hydroelectric Storage System (PHES) in Australia.

A joint venture formed by the two infrastructure businesses has secured an early contractor involvement (ECI) agreement for the PHES – part of the big Capricornia Energy Hub (CEH) – from project owner Copenhagen Infrastructure Partners. Gamuda said it expects to take five months to draw up the EPC contract.

The Capricornia Energy Hub, 80 km west of the Queensland city of Mackay, is set to feature 1.4 GW of grid-connected PHES and solar and wind generation capacity.

The project website states two sites in the North Queensland renewable energy zone will be developed to provide power for around 900,000 Queensland homes from 2031 onwards.

The clean energy hub will connect to the Strathmore-to-Nebo high-voltage electricity transmission line via a new substation and 18 km of new power lines, according to the project website.

Construction of the PHES is expected to start in 2026 and the site will feature two reservoirs, the lower of which will be 5 km from the Eungella dam.

Building is set to create 600 jobs during the peak construction period with 65 local jobs to be maintained once the PHES is operational.

Capricornia Energy Hub CEO John Carr, quoted in a Gamuda press release issued on Jan. 24, 2025, said, “The appointment of ECI partners is a significant milestone for CEH as it allows us to draw on Gamuda’s and Ferrovial’s expertise to design a cost-effective pumped hydro [system]. We look forward to working with our ECI partners and their strong regional networks to unlock more opportunities for local contractors and supporting the local supply chain.”