OPAL Fuels Inc. announced the sale of approximately $11.1 million of Inflation Reduction Act (IRA) investment tax credits to a subsidiary of Apollo Global Management, the renewable natural gas (RNG) company announced Sept. 18.

The sale, which is OPAL’s first IRA tax credit transaction, represents OPAL’s 50% stake in the tax credits generated from the Emerald RNG facility.

Management indicated that OPAL’s capex share for Emerald is approximately $45 million, according to a report from TPH& Co. analyst Matthew Blair. The company has recovered 25% of its capex due to monetizing the tax credit, Blair said.

“Management has indicated that while the [tax credit] cash proceeds will boost CFO, OPAL will not be including them in [adjusted] EBITDA,” Blair said.

The 2.6 MMBtu facility, located in Michigan, has a nameplate capacity of 10,000 scf/minute and captures and converts biogas into low-carbon intensity RNG and renewable power.

“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,” said Jonathan Maurer, co-CEO of OPAL Fuels.

“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,” Maurer said.

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