OPAL Fuels Inc. (Nasdaq: OPAL), a leading company in the capture and conversion of biogas to renewable natural gas (RNG) and renewable power, has released its financial results for the three and nine months ending on September 30, 2024.
Co-CEO Adam Comora highlighted the company’s achievements, stating, “Our third-quarter results are robust, setting strong momentum for the rest of the year and into 2025. We’re progressing on strategic initiatives, including bringing RNG projects online, starting new constructions, and expanding our vertically integrated downstream business.” This year alone, OPAL Fuels has launched three landfill RNG facilities, initiated construction on three additional projects, and significantly grown its downstream business.
Co-CEO Jonathan Maurer emphasized OPAL Fuels’ solid 2024 outlook, stating, “We’re well-positioned to meet our guidance with 11 RNG facilities in operation, representing an annual design capacity of 8.8 million MMBtu, which has more than doubled organically over the past two years. With six more projects in construction adding 2.6 million MMBtu capacity, the strength of our integrated model and RNG’s growing role in transportation fuel continue to drive results.”
Financial Highlights
- Revenue: $84.0 million for Q3 and $219.9 million for the nine months ending September 30, up 18% and 30%, respectively, year-over-year.
- Net Income: $17.1 million for Q3 and $19.7 million for the nine months ending September 30, compared to $0.2 million and $106.9 million in the prior year periods.
- Adjusted EBITDA: Reached $31.1 million for Q3 and $67.4 million for the nine months, showing a significant increase from the previous year.
- Investment Tax Credits: Sold $11.1 million of tax credits in Q3, yielding net proceeds of $8.6 million.
Operational Highlights
- New Projects Online: The Sapphire RNG project, a 50/50 joint venture with GFL, began commercial operations in September, with a design capacity of 0.8 million MMBtu for OPAL Fuels. The Polk County RNG project, fully owned by OPAL, also launched in October with an annual design capacity of 1.1 million MMBtu.
- Production and Sales Growth: RNG production grew by 43% in Q3, reaching 1.0 million MMBtu, while RNG sold as transportation fuel increased by 80%, reaching 19.6 million GGEs for the quarter.
- Fuel Station Services: Distributed 38.7 million GGEs of transportation fuel in Q3.
Project Development and Construction Updates
- Atlantic, Cottonwood, and Burlington Projects: Construction remains on schedule, with expected annual design capacities for OPAL Fuels’ share of 0.33 million, 0.66 million, and 0.46 million MMBtu, respectively.
- Kirby Project: Construction began in November, adding an annual design capacity of 0.66 million MMBtu for OPAL Fuels.
With continued growth and strategic expansion, OPAL Fuels remains committed to delivering on its guidance and enhancing its RNG infrastructure and production capabilities.
