South Australia faces potential loss of green steel leadership following GFG Alliance's decision to use natural gas instead of hydrogen at its Whyalla steelworks. The Institute for Energy Economics & Financial Analysis warns this shift undermines the state's renewable energy advantages. Gas-based technology reduces emissions by only 30% to 40% compared to blast furnaces, while hydrogen offers near-zero carbon steel production. International competitors in Sweden & Germany are advancing hydrogen steel projects, capturing markets Australia could have led.