WHITE PLAINS, N.Y. – OPAL Fuels Inc. (NASDAQ: OPAL) has begun the construction of a new renewable (RNG) facility at the Kirby (NYSE:) Canyon Landfill in Santa Clara County, California. The facility, which is entirely owned by OPAL Fuels, will have an initial annual design capacity of approximately 0.66 million MMBtus.

The project utilizes established technology to capture and convert landfill biogas, a result of organic material decomposition, into RNG. This alternative fuel source is intended to serve as a low-carbon and cost-effective option for transportation fuel. The plant’s design capacity allows for the production of roughly 5.1 million gas gallons equivalent (GGE) of RNG per year. OPAL Fuels plans to distribute this RNG through its network of fueling stations to natural gas-powered heavy-duty trucks, aiming to reduce emissions and fuel costs compared to diesel-powered fleets.

This new facility marks OPAL Fuels’ 17th RNG project and its first in the state of California. “Beginning construction of our 17th RNG project, our first in California, continues the OPAL execution story of moving projects from development, through construction and into operations,” stated Jonathan Maurer, co-CEO of OPAL Fuels.

OPAL Fuels Inc. is recognized for its role in the capture and conversion of biogas into RNG and renewable electricity, as well as its marketing and distribution efforts of RNG to the heavy-duty trucking sector and other industries that are challenging to decarbonize.

The information provided is based on a press release statement from OPAL Fuels Inc.

In other recent news, Piper Sandler has revised its third-quarter earnings per share (EPS) and EBITDA estimates for Darling Ingredients (NYSE:), primarily due to weaker margins at Darling Ingredients’ joint venture, Diamond Green Diesel (DGD), and slower improvement in fat pricing than initially anticipated. The firm also revised its fiscal year 2024 and 2025 EBITDA estimates for Darling Ingredients. The firm anticipates that Darling Ingredients’ management will provide updated FY24 guidance and outline the outlook for 2025.

Meanwhile, OPAL Fuels has reported significant business developments. The company has sold approximately $11.1 million in investment tax credits to a subsidiary of Apollo Global Management (NYSE:), Inc., marking OPAL Fuels’ entrance into IRA tax credit sales. This transaction provides the company with additional liquidity to further its strategic growth initiatives.

OPAL Fuels has also reported solid Q2 performance, with results aligning with expectations. The company commenced construction on its 16th RNG project and aims to have at least 2 million MMBtu of new RNG production in construction for 2024. These are recent developments that demonstrate the company’s commitment to growth in the renewable energy sector.

InvestingPro Insights

OPAL Fuels Inc.’s recent announcement of its 17th RNG project aligns with the company’s strong growth trajectory. According to InvestingPro data, OPAL has demonstrated impressive revenue growth, with a 27.13% increase over the last twelve months as of Q2 2024, and an even more robust 28.9% quarterly growth in Q2 2024. This expansion into California, a state known for its aggressive environmental policies, could further bolster the company’s market position.

The company’s focus on renewable energy solutions appears to be paying off financially. InvestingPro Tips highlight that OPAL is profitable over the last twelve months, with analysts predicting continued profitability this year. This financial health is reflected in the company’s adjusted P/E ratio of 9.05, suggesting that the stock may be undervalued relative to its earnings potential.

However, investors should note that OPAL is trading at a high EBITDA valuation multiple, which could indicate that the market has already priced in some of the company’s growth prospects. The company also operates with a moderate level of debt, which may provide flexibility for future projects but should be monitored.

For those interested in a deeper analysis, InvestingPro offers additional tips and insights. Currently, there are 7 more InvestingPro Tips available for OPAL Fuels Inc., providing a more comprehensive view of the company’s financial position and market outlook.

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