Energy intensity is an issue with hydrogen steelmaking. To produce hydrogen by electrolysis at the large scale needed for steelmaking requires a massive amount of electricity. Ideally it needs to be green electricity as well.

So if there is a lower energy way of producing green steel it is at least worth exploring.

What are you suggesting, electrolysis baths in every solar-powered home?

Meaningful solar, hydro, nuke and wind power plants are quite concentrated (100MW-few GW) anyway.

If anything, solar/wind are less suitable due to intermittent output and would require hydrogen buffer storage.