Renewable natural gas company Opal Fuels to go public via merger with SPAC AcrLight in $1.75 billion deal

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Opal Fuels LLC, a producer of renewable natural gas, said Thursday it is going public via a merger with special purpose acquisition corporation ArcLight Clean Transition Corp. II ACTD, in a deal with an enterprise value of $1.75 billion. Once the deal closes, Opal will trade on Nasdaq under the new ticker “OPL.” Opal will have a total of about $536 million in cash, split between the SPAC’s $311 million of cash held in trust, a $125 million private investment in public equity, or PIPE, led by NextEra Energy, an affiliate of ArcLight, Electron Capital Partners, Gunvor Group, Wellington Management and Adage Capital Management, and up to $100 million in a preferred equity investment from affiliates of NextEra Energy. The deal is expected to close in the second quarter of 2022. “RNG (renewable natural gas) is a proven low-cost, low-carbon fuel that when used in transportation in place of diesel fuel can cost 40 to 70 percent less per gallon, providing significant annual operating cost savings while dramatically reducing the carbon footprint of heavy duty fleets,” the companies said in a joint statement. Opal was founded in 1998 and is expected to generate almost $170 million in revenue in 2021. The company operates 21 biomethane projects, of which three are in RNG service and the balance in renewable power service.

This article was originally published by Marketwatch.com. Read the original article here.

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