RNG company OPAL to go public

Renewable 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.”