Opal Fuels agrees to sale of IRA investment tax credits

Opal Fuels Inc., a White Plains, New York-based vertically integrated leader in the capture and conversion of biogas into low carbon intensity renewable natural gas (RNG) and renewable power, has sold approximately $11.1 million of Inflation Reduction Act (IRA) investment tax credits to a subsidiary of Apollo Global Management, Inc., a New York-based provider of alternative asset management and retirement solutions.

This sale represents Opal Fuels’ stake in the investment tax credits generated by the Emerald RNG facility, a joint venture that is 50 percent owned by Opal Fuels.

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“The sale of IRA tax credits provides Opal Fuels another source of liquidity to continue funding our strategic growth initiatives,” Opal Fuels co-CEO Jonathan Maurer says. “We view the IRA as favorable for the renewable energy industry and an important driver of investment across our project pipeline over the next several years.”

The IRA, signed into law in August 2022, provides for the issuance of transferable federal income tax credits for certain renewable fuel projects and products. The sale is Opal Fuels’ first IRA tax credit transaction.

“With nameplate capacity of 10,000 scfm [standard cubic feet per minute], the Emerald RNG facility is one of the largest landfill RNG facilities in North America,” Maurer says. “Today’s tax credit sale helps spur investment in these important assets going forward capturing naturally occurring biogas and combating climate change through decarbonization of heavy-duty trucking fleets.”