South Australia's Gas Gamble: Whyalla's Crossroads

0:00A fresh report out today slams South Australia's push for gas to power the Waiola Steelworks, warning the state could lag behind the global shift to, greener still making. The government locked in a deal with Santos before the state election for 200 petijoules of gas over 10 years, starting in 2030. Treasurer Tom Calcintonis has flat out ruled out the state buying the plant, which is now in administration after troubles with its previous owner. Earlier this year, the government ditched a $590 million green hydrogen plan meant to back the steelworks and redirected funds to keep it afloat. Coutcentonis has called gas the king for any buyer's future plans, like direct iron reduction tech. But with the steelworks being Australia's only maker of long steel products for construction and rail, the stakes are high. The report from the US-based Institute for Energy Economics and Financial Analysis points to sky high eastern Australian gas prices making a gas-reliant plan uncompetitive worldwide. The ongoing Iran crisis

1:03has spiked global prices, spotlighting risks in long-term gas lock-ins, especially since South Australia lacks cheap gas, advantages. Buyers like BlueScope need gas under $10 trillion per gigajoule to even consider it. Meanwhile, global projects are racing ahead with green hydrogen. Sweden's Stegra plant will run fully on it from launch, fetching 20-30% premiums from automakers. In Germany, steel giant Arsler Middle, bailed on a gas transition despite a 1.3 billion euro government grant, calling it unviable. This puts South Australia at a crossroads, sticking with gas might sink Yala's edge as the world pivots from fossil fuels, but green hydrogen could. Still position it as a leader, if leaders pivot back in time. Stay informed with Adelaide News today, AI-powered updates. I'm Corey with The Story.