Spain has approved consumption quotas for renewable fuels of non-biological origin (RFNBOs), including green hydrogen, in road transport, which are set to hit 11% by 2040.
The royal decree transposes transport-related targets of the EU’s Renewable Energy Directive III (RED III) into national law as part of plans to reduce road transport emissions by 30% in 2040.
From 2028, RFNBOs must account for 0.7% of the energy supplied to road transport. The decree includes temporary flexibility provisions, allowing part of this obligation to be met through alternative compliance pathways for refiners and fuel suppliers.
The quotas can be met through renewable hydrogen used in refining and through hydrogen supplied directly to fuel cell vehicles.
These targets will increase to 1.5% in 2029, 2.5% in 2030, through to 11% by 2040.
The decree makes non-compliance with the renewable fuel obligations an infringement under Spain’s Hydrocarbons Law, exposing obligated parties to administrative sanctions and financial penalties. Specific penalties have not been confirmed.
The transposition comes over a year after EU member states were due to implement the rules into national law.
The targets are viewed as a major demand driver for green hydrogen. Commentators suggested Germany’s recently implemented RFNBO transport mandates of 1.2% by 2030 could require between 1.1GW and 4.2GW of electrolyser capacity.
The quotas are expected to be welcomed by much of Spain’s hydrogen sector, where developers have continued advancing major projects despite slower-than-expected demand growth.
Oil and gas firms like Moeve, BP, and Repsol are all moving ahead with installations to replace grey hydrogen used in refining processes.
However, the decree made no mention of RED III’s industrial target, which would require 42% of industrial hydrogen to be RFNBO by 2030.
Governments, including Germany, have criticised that measure for potentially adding too much additional cost to sectors already facing competitiveness concerns.
