RNG producer OPAL to build two new US facilities
SUMMARY
The company formed a joint venture that would give it a new stream of feedstock sourced from landfills.
By Daniel GraeberNew York-based renewable natural gas (RNG) developer OPAL Fuels said December 14 it had formed a joint venture with environmental services company GFL Renewables to develop two new production facilities in the United States.
The 50:50 joint venture will work to develop two RNG facilities that will utilise methane emissions from GFL-operated landfills. That methane in turn will be used as a transportation fuel for heavy-duty vehicles.
“This is truly a win-win scenario as we are able to close the loop on methane emissions from GFL’s landfill facilities from its capture, processing, delivery and utilisation as RNG in their fleet to replace diesel,” said Adam Comora, the co-CEO of OPAL Fuels.
One project in Michigan will yield pipeline-quality RNG and is touted as the largest such facility of its kind in the country, based on the expected volume of landfill gas. A second facility is planned for North Carolina. Both are expected to start commercial operations in 2023.
OPAL in early December said it would combine with acquisition firm ArcLight and turn into a publicly-listed company on the Nasdaq stock exchange.
OPAL already 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.
