Spain enacts renewable H2 transport quotas through 2040

Spain has enacted binding quotas for use of renewable fuels of non-biological origin (RFNBO) in the transport sector during 2027-2040 as part of its transposition of the EU Renewable Energy Directive (RED III).

The government published the final legislation in the official gazette on 23 July, following an announcement by the ecological transition ministry Miteco this week.

The final text largely mirrors the draft decree released for consultation in January, although it includes adjustments to compliance timelines and flexibility mechanisms.

The legislation establishes a dedicated RFNBO mandate for road transport fuel suppliers, beginning at 0.2pc of fuel supplied in 2027 and rising progressively to 11pc by 2040 (see table). Earlier drafts proposed introducing the quota in 2028.

The EU's RED III obliges countries to make sure that at least 1pc of all fuels used across different transport sectors by 2030 are RFNBOs, but does not set targets beyond then. The law puts Spain's RFNBO quotas among the most ambitious in the EU and helps provide long-term certainty for industry participants and investors.

The decree also confirms that renewable hydrogen used by refineries as an intermediate input in the production of conventional fuels and biofuels can count towards compliance with the RFNBO target. But fuel refiners will face stricter compliance requirements than non-refining suppliers because they can count both intermediate and final RFNBO use, according to the government.

As proposed in the draft legislation, Spain's RFNBO obligation will be split between a firm quota and a temporary flexible quota. Until 2032, part of the RFNBO requirement may be met using advanced biofuels and advanced biogas. Until 2030, suppliers may also use low-carbon electrolytic hydrogen that does not fully qualify as an RFNBO under EU rules. The flexibility mechanism will be phased out from 2033, earlier than envisaged in the draft law.

The decree also confirms that compliance will be calculated on the basis of the actual energy content of fuels supplied, meaning quota percentages reflect real energy volumes rather than multiplier-adjusted contributions. It also confirms that only hydrogen produced within the EU would be eligible to count towards the quotas.

A provision closely watched by hydrogen developers has been retained. RFNBO volumes consumed in Spanish industry can generate renewable fuel certificates that may be traded with transport fuel suppliers for compliance purposes. The mechanism could create a cross-sector compliance market linking industrial hydrogen consumers with transport fuel suppliers.

The legislation establishes the framework for a national sustainability verification and certification system covering RFNBOs and other renewable fuels. Fuel suppliers will be required to demonstrate compliance with greenhouse-gas reduction targets, RFNBO mandates and renewable fuel sub-targets through the certification system. Failure to comply with the obligations, or to provide the required sustainability and traceability documentation, may trigger sanctions under Spain's hydrocarbons law, the same framework used to enforce existing biofuels blending mandates.

Beyond road transport, the legislation also introduces renewable-fuel and greenhouse-gas reduction obligations for voyages between Spanish ports. The renewable-fuels mandate, which can be met through a range of renewable fuels including RFNBOs, will rise to 7pc by 2030 and 20pc by 2040. The decree also incorporates the EU ReFuelEU Aviation framework, under which aviation fuel suppliers must comply with sustainable aviation fuel (SAF) and synthetic aviation fuel (e-SAF) requirements.

By Pamela Machado