Opal Fuels (OPAL) and GFL Environmental (GFL) are advancing two renewable natural gas projects in Alabama and Georgia with a combined design capacity of almost 2 trillion British thermal units, the companies said Wednesday.
The partners are building the facilities at the Stones Throw Landfill in Alabama's Tallapoosa County and the Grady Road Landfill in Georgia's Polk County, with each company holding a 50% ownership stake.
Under the agreement, Opal Fuels will market and distribute all renewable natural gas produced by the facilities through its expanding compressed natural gas and renewable natural gas fueling network, the companies said.
Once operational, the projects are expected to supply enough fuel for about 800 Class 8 heavy-duty trucks, providing a lower-cost alternative to diesel while eliminating Scope 1 and Scope 2 emissions from fuel use.
The companies said rising diesel price volatility, improving regulatory certainty for combustion engines and the rollout of next-generation natural gas engines are encouraging more trucking fleets to switch fuels.
"Bringing new RNG production online amid accelerating fleet demand reinforces the strength of our vertically integrated model," Jonathan Maurer, co-chief executive officer of Opal Fuels, said, adding that the projects support long-term revenue growth, margin expansion and shareholder returns.
The facilities will use established technology to capture methane produced from decomposing organic waste at both landfills and convert it into renewable natural gas for use as a lower-carbon transportation fuel, the companies said.