The Federal government's flip flopping between carbon emission policies since 2007 is being blamed for Tomago Aluminium's reluctance to invest in the region.
Tomago Aluminium is already an industry heavyweight, employing 1150 workers and contributing a huge $800 million to the Hunter's economy.
However, it seems the Federal government could give them a helping hand to be even better, hinting at the possibility of subsidising a new ultra-clean coal-fired power station.
A clean coal setup would increase Tomago's competitiveness in the region, but its viability is being questioned by industry heavyweights, AGL and Energy Australia.
The Newcastle Herald reports Chief Executive Matt Howell says Tomago made a submission to the national energy market security review which showed the uncertainty caused by changes to policy since the Rudd government have impacted businesses that are "highly dependent on outcomes in the electricity market".
