The country’s GHG reduction quota passed parliamentary review on April 23 and will implement new targets for the use of renewable fuels of non-biological origin (RFNBO) in road mobility under the EU’s Renewable Energy Directive III (REDIII).

The passed bill increased 2040 requirements for RFNBO’s like green hydrogen and e-fuels in the sector to 10%, two per cent higher than the original draft approved by the federal cabinet.

It also adds a €120 ($140) per gigajoule levy on fuel suppliers failing to meet the commitments.

The mandates are viewed by the hydrogen sector as a key demand driver for the molecule, which has so far faced a delayed rollout.

According to US electrolyser maker Electric Hydrogen, the original 1.2% 2030 target alone could need between 1.1GW and 4.2GW of electrolyser capacity.