BlueScope yesterday reiterated how vital the plant would be in helping to meet Australia's emission reduction targets.

The plant would reduce greenhouse gas emissions equivalent to taking more than 200,000 cars off the road, and would offset emissions to such an extent that it could produce enough electricity to make the steelworks self-sufficient.

However, the project is on hold until the company learns exactly what the Federal Government's Carbon Pollution Reduction Scheme will mean to the industry.

It is vital that the Federal Government produces a well-considered and well-managed scheme, rather than introduce legislation which may put at risk projects such as the cogeneration plant.

BlueScope has already invested $100 million to ascertain the project's viability - now it's up to the Government to ensure that money is not wasted.