The joint venture will produce renewable natural gas for 800 heavy-duty tractors, targeting cost savings and zero emissions.
GFL Environmental Inc. (NYSE:GFL) and Opal Fuels (OPAL) announced progress on two renewable natural gas (RNG) facilities in Alabama and Georgia. The projects, with a combined design capacity of nearly 2M MMBTU, are owned equally by both companies. Opal Fuels will market and distribute the output through its dispensing network, supplying fuel for approximately 800 Class 8 heavy-duty tractors.
The facilities aim to offer better economics than diesel while eliminating Scope 1 and Scope 2 emissions. Analysts recently adjusted price targets for GFL, with CIBC lowering its target to C$75 from C$77 and Scotiabank reducing it to $52 from $56, both maintaining Outperform ratings. The adjustments followed GFL’s pending acquisition of SECURE Waste Infrastructure.
The announcement underscores the growing investment in RNG infrastructure amid demand for sustainable fuel alternatives.