RNG company OPAL to go public
SUMMARY
The US company said RNG is the right solution at the right time for the fight against climate change.
By Gas PathwaysRenewable natural gas (RNG) company OPAL Fuels said December 1 it would combine with acquisition firm ArcLight and turn into a publicly-listed company on the Nasdaq stock exchange.
OPAL operates 21 biomethane projects and expects to generate $170mn in revenues this year. The agreement with ArcLight has an implied value of $1.75bn and OPAL will trade under the ticker symbol OPL once the transaction closes in the second quarter of 2022.
OPAL produces RNG by a so-called capture and conversion method that traps methane from sources such as landfills and dairy farms. That methane is treated and purified to become a cleaner fuel source.
Apart from serving as an alternative fuel, RNG avoids emissions and is a source of revenue for the companies involved.
“RNG is a proven low-cost, low-carbon fuel that when used in transportation in place of diesel fuel can cost 40 to 70% less per gallon, providing significant annual operating cost savings while dramatically reducing the carbon footprint of heavy-duty fleets,” OPAL explained.
The company said it has a fuelling network for heavy-duty trucking fleets in 42 US states.
Adam Comora, the co-CEO of OPAL Fuels, said the transaction with ArcLight is a major developmental step for the company and for the energy transition.
“RNG is a right now solution to the right now problem of climate change,” he said. “RNG is one of the most attractive sources of renewable energy – its production uses existing technologies proven at scale, it can be transported on existing pipeline infrastructure, and it can be stored effectively until its use, all of which lead to a cost competitive and reliable fuel source.”
