OPAL Fuels Inc.

What they do

OPAL Fuels captures biogas from landfills and dairy manure, converts it into RNG and renewable power, and markets RNG to heavy-duty trucking and other industrial sectors. The company also designs, builds, operates, and services natural gas fueling stations, including early-stage hydrogen fueling station services.

Revenue drivers

• Fuel Station Services (FSS) — Largest segment; sold, dispensed, and serviced 39.0 million GGEs in Q2 2026 and generated $53.1M revenue, up from $47.0M in Q2 2025. Revenue includes fuel sales, dispensing, and station services.
• RNG Fuel — Sells RNG as transportation fuel; Q2 2026 revenue was $23.8M, down from $25.1M in Q2 2025. Volume sold was 20.9 million GGEs in Q2 2026, up 1% year-over-year.
• Renewable Power — Generates electricity from biogas; Q2 2026 revenue was $6.5M, down from $8.3M in Q2 2025.

Recent performance

For Q2 2026, revenue rose 4% year-over-year to $83.4M, but net income swung to a loss of $4.1M from a $7.6M profit in Q2 2025. Adjusted EBITDA grew 40% to $23.1M, driven by 45Z production tax credits, FSS growth, and cost savings. For the six months, revenue fell 5% to $156.8M with a net loss of $9.7M. RNG production increased 4% in Q2 to 1.3 million MMBtu.

Strategy

Management aims to grow RNG production and EBITDA at existing facilities using minimal capital, while advancing construction of new RNG plants. The company is diversifying feedstock sources beyond landfill gas to dairy manure and other waste streams, and expanding into hydrogen fueling station services. It continues to monetize 45Z production tax credits, having entered a $100 million Master Agreement in April 2026. The company is also focused on capital discipline, cost savings, and leveraging its vertically integrated model to capitalize on natural gas's cost advantage over diesel.

Risks

• Dependence on site owners — OPAL relies on contractual arrangements and cooperation of landfill and dairy farm owners; they make no warranties on gas quality or quantity.
• Environmental Attribute price volatility — Revenue is sensitive to prices for RINs, LCFS credits, ISCC Carbon Credits, and other incentives; a reduction could materially hurt results.
• Pipeline and interconnection constraints — The company depends on third-party pipelines and transmission facilities; disruptions or inadequate capacity could restrict delivery and increase costs.
• Operational and equipment risks — Biogas conversion projects face risks from equipment failure, performance below expectations, design errors, or force majeure events.

Outlook

Management maintains 2026 guidance, citing solid Q2 results and on-track annual performance. They expect continued growth from 45Z credits, FSS segment expansion, and cost savings. Future growth is anchored on new RNG facilities coming online and the structural cost advantage of natural gas versus diesel. RNG Pending Monetization stood at $16.3 million at June 30, 2026.