OPAL Fuels to Monetize $100 Million in Clean Fuel Tax Credits to Fund RNG Growth

OPAL Fuels plans to monetize $100 million in federal clean fuel tax credits to support renewable natural gas projects and fueling infrastructure expansion.

(P&GJ) — OPAL Fuels has entered into an agreement to monetize up to $100 million in federal clean fuel production tax credits, providing funding to support expansion of renewable natural gas (RNG) projects and fueling infrastructure.

The agreement establishes a framework for monetizing credits under Section 45Z of the U.S. tax code, which incentivizes production of low-carbon transportation fuels. The first transaction under the agreement is expected to close this quarter.

The company said proceeds from the transaction will be used to support development of new RNG facilities and expand compressed natural gas (CNG) fueling networks serving heavy-duty transportation fleets.

Section 45Z credits are designed to encourage production of cleaner fuels and have become a key policy driver supporting investment in renewable fuel infrastructure.

Adam Comora, co-CEO of OPAL Fuels, said the agreement is intended to strengthen the company’s ability to fund growth projects.

“The proceeds will support investments in new RNG projects and fueling infrastructure,” Comora said.

OPAL Fuels said the strategy is aimed at increasing adoption of RNG and CNG as alternatives to diesel in the transportation sector.