Germany strengthens the RFNBO pathway under RED III, sending a clear signal for the hydrogen market ramp-up

On Thursday, 23 April 2026, the German Bundestag adopted Germany’s national implementation of the revised Renewable Energy Directive (RED III) as part of the “Act on the Further Development of the Greenhouse Gas Reduction Quota”, strengthening the regulatory basis for the hydrogen market.

With this decision, Germany provides long‑awaited clarity for the hydrogen market and underlines the growing role of green hydrogen in the energy transition. The newly adopted RFNBO trajectory sets significantly higher targets for renewable fuels of non‑biological origin in the transport sector, increasing from 0.1% in 2026 to 5% in 2035 and 10% by 2040.

This strengthened pathway sends a clear signal to industry and investors and confirms that hydrogen will be a central pillar of Germany’s and Europe’s long‑term decarbonisation strategy in the coming decades.

Scaling the hydrogen economy requires resilient and flexible infrastructure. LOHC technology enables this by making hydrogen safe, efficient and scalable to transport and store – both within Germany and across global supply chains.

Equally important, the clarified RFNBO trajectory delivers long-term planning certainty, which the market has been waiting for. With a clear regulatory framework in place, stakeholders can invest with confidence across the value chain – from production and imports to midstream logistics solutions that will be essential to make hydrogen available where it is needed.

Following its adoption in the Bundestag, the Bundesrat is expected to debate the bill on 8 May 2026, paving the way for its swift enactment.

More information on the adoption of RED III in Germany (German): Deutscher Bundestag – Bundestag stimmt Anhebung der Treibhausgasminderungs-Quote zu