Since RED II came into force in 2018, the EU has recognised hydrogen from biogenic residues as an advanced biofuel, provided that it is to be counted towards GHG reduction targets. The prerequisites are that:

• the relevant sustainability criteria are met, i.e. the biomass has the appropriate certificates such as SURE or REDcert, and
• the hydrogen is ideally obtained exclusively from residues listed in Annex IX of the Directive.

The much-discussed legal act does not exclude biogenic hydrogen from CAPEX subsidies or CO₂ trading mechanisms. It merely defines the eligibility of electricity-based hydrogen. The European Commission has published a clear explanation of this.

Advanced biofuels are not subject to the same tax regulations and expansion targets as RFNBOs, but they are equally eligible and are neither excluded from subsidies nor disadvantaged. Leading subsidy programmes – such as NOW GmbH – have long taken this into account.

Apart from GHG quota trading in the transport sector, there are basically few restrictions on the use of hydrogen, regardless of its origin. Companies with certificate obligations can – with the appropriate carbon footprint – credit and offset the energy sources they use.