Opal Fuels Inc. (NASDAQ: OPAL) has just announced the sale of approximately $11.1 million of Inflation Reduction Act (IRA) investment tax credits to a subsidiary of Apollo Global Management, Inc. This sale represents Opal Fuels' stake in the investment tax credits generated by the Emerald RNG Facility, a joint venture in which Opal Fuels holds a 50% ownership.
The Inflation Reduction Act, which was signed into law in August 2022, provides for the issuance of transferable federal income tax credits for certain renewable fuel projects and products. This marks Opal Fuels' first IRA tax credit transaction.
The sale of IRA tax credits is seen as providing Opal Fuels with another source of liquidity to continue funding its strategic growth initiatives. Jonathan Maurer, the co-chief executive officer of Opal Fuels, stated that they view the IRA as favorable for the renewable energy industry and an important driver of investment across their project pipeline over the next several years.
The Emerald RNG Facility, with a nameplate capacity of 10,000 scfm, is one of the largest landfill RNG facilities in North America. The tax credit sale is expected to help spur investment in these assets, which play a crucial role in capturing naturally occurring biogas and combating climate change through the decarbonization of heavy-duty trucking fleets.
Opal Fuels Inc. is a leader in the capture and conversion of biogas into low carbon intensity RNG and renewable electricity. The company is also a leader in the marketing and distribution of RNG to heavy-duty trucking and other hard-to-decarbonize industrial sectors.
With this latest transaction, Opal Fuels is positioning itself to continue leading the effort to capture North America's naturally occurring methane and decarbonize the economy. As a result of these announcements, the company's shares have moved 2.8% on the market, and are now trading at a price of $3.81. For more information, read the company's full 8-K submission here.
