Bill Passed: Germany Requires Cars to Use 10% e-Fuels by 2040
A new law on automotive fuels is creating massive demand in Germany for renewable fuels of non-biological origin (RFNBO)—in practice, this means fuels produced, for example, from hydrogen generated by wind power in Finland. It is expected to accelerate final investment decisions in renewable hydrogen production.
The German Bundestag approved the national implementation of the revised Renewable Energy Directive (RED III) as part of the “Act on the Development of Greenhouse Gas Emission Reduction Targets,” which strengthens the regulatory framework for the hydrogen market.
The newly approved RFNBO plan sets significantly higher targets for the transport sector regarding renewable fuels of non-biological origin: their share will rise from 0.1 percent in 2026 to 1.2 percent in 2030, 5 percent in 2035, and 10 percent by 2040. The law includes a fine of 120 euros per gigajoule for fuel suppliers who fail to meet the obligation.
