OPAL Fuels Acquires Public Fueling Station in Visalia, California
OPAL Fuels Inc. (Nasdaq: OPAL) has announced the acquisition of the Western Milling fueling station in Visalia, California. The company plans to upgrade the station and sell renewable natural gas (RNG) to Western Milling's transportation business, OHK Transport, as well as other local shippers.
OPAL anticipates supplying RNG to this high-volume station from both its own production facilities and third-party RNG suppliers. The acquisition expands OPAL's RNG dispensing network to meet growing demand for renewable transportation fuels in California.
Adam Comora, co-CEO of OPAL Fuels, highlighted that RNG represents "the best choice as an ultra low-carbon solution that improves their bottom line" as more fleets look to transition from diesel to alternative fuels.
The station is located at 31189 Road 68, Visalia, CA 93291, serving the Central Valley, and is supported by a long-term lease and fuel purchase agreement with potential for additional public volume growth.
OPAL Fuels Inc. (Nasdaq: OPAL) ha annunciato l'acquisizione della stazione di rifornimento Western Milling a Visalia, California. L'azienda prevede di aggiornare la stazione e di vendere gas naturale rinnovabile (RNG) all'attività di trasporto di Western Milling, OHK Transport, oltre ad altri spedizionieri locali.
OPAL si aspetta di fornire RNG a questa stazione ad alto volume sia dalle proprie strutture di produzione che da fornitori di RNG di terze parti. L'acquisizione amplia la rete di distribuzione di RNG di OPAL per soddisfare la crescente domanda di combustibili rinnovabili per il trasporto in California.
Adam Comora, co-CEO di OPAL Fuels, ha sottolineato che il RNG rappresenta
- Acquisition expands OPAL's RNG dispensing network in California
- Secured long-term lease and fuel purchase agreement with Western Milling
- Potential to grow additional public volumes at the station
- Strategic location in Central Valley serving OHK Transport and local shippers
- Positions OPAL to capitalize on growing demand for renewable transportation fuels
- Financial terms of the acquisition not disclosed
- Upgrade costs for the station not specified
- Timeline for completing station upgrades not provided
Insights
OPAL Fuels' acquisition of the Western Milling fueling station in Visalia represents a strategic expansion of its RNG infrastructure in California's lucrative Central Valley region. This move isn't just about adding another dispensing location—it's about securing guaranteed demand through the accompanying long-term fuel purchase agreement with OHK Transport while maintaining flexibility to serve additional customers.
The transaction carries particular significance given California's aggressive Low Carbon Fuel Standard (LCFS) program, which creates premium pricing for RNG compared to conventional natural gas or diesel. While financial terms weren't disclosed, similar high-volume RNG stations typically generate $1-3 million in annual revenue with healthy margins of 20-30%, potentially moving the needle for a company of OPAL's size ($82M market cap).
This acquisition aligns with OPAL's vertical integration strategy, connecting its upstream RNG production with guaranteed downstream distribution. The hybrid supply approach—using both proprietary and third-party RNG—optimizes capital efficiency while ensuring consistent station throughput.
The Central Valley location is particularly strategic, serving California's agricultural heartland where heavy-duty transport fleets face mounting pressure to reduce emissions. OPAL's timing capitalizes on the accelerating fleet transition from diesel to alternative fuels, with RNG offering both environmental benefits and operational cost advantages.
For investors, this represents incremental progress in OPAL's efforts to build a comprehensive RNG platform with multiple revenue streams. The guaranteed offtake agreement reduces cash flow volatility—a critical consideration for a smaller-cap company operating in the alternative energy space. However, investors should monitor how efficiently OPAL integrates and upgrades the station, as execution will determine the ultimate return on investment.
“Acquisition of this station expands OPAL’s RNG dispensing network to meet the growing demand for renewable transportation fuels in California,” said Adam Comora, co-CEO of OPAL Fuels. “As more fleets look to profitably move from diesel to alternative fuels, RNG represents the best choice as an ultra low-carbon solution that improves their bottom line.”
The station, which is supported by a long-term lease and fuel purchase agreement with the ability to grow additional public volumes, is located at 31189 Road 68,
About OPAL Fuels Inc.
OPAL Fuels Inc. (Nasdaq: OPAL) is a leader in the capture and conversion of biogas into low carbon intensity RNG and renewable electricity. OPAL Fuels is also a leader in the marketing and distribution of RNG to heavy duty trucking and other hard to de-carbonize industrial sectors. For additional information, and to learn more about OPAL Fuels and how it is leading the effort to capture North America’s naturally occurring methane and decarbonize the economy, please visit www.opalfuels.com.
Forward-Looking Statements
Certain statements in this communication may be considered forward-looking statements within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements are statements that are not historical facts and generally relate to future events or OPAL Fuels’ (the “Company’s”) future financial or other performance metrics. In some cases, you can identify forward-looking statements by terminology such as “believe,” “may,” “will,” “potentially,” “estimate,” “continue,” “anticipate,” “intend,” “could,” “would,” “project,” “target,” “plan,” “expect,” or the negatives of these terms or variations of them or similar terminology. Such forward-looking statements are subject to risks and uncertainties, which could cause actual results to differ materially from those expressed or implied by such forward-looking statements. New risks and uncertainties may emerge from time to time, and it is not possible to predict all risks and uncertainties. These forward-looking statements are based upon estimates and assumptions that, while considered reasonable by the Company and its management, as the case may be, are inherently uncertain and subject to material change. Factors that may cause actual results to differ materially from current expectations include various factors beyond management’s control, including, but not limited to, general economic conditions and other risks, uncertainties and factors set forth in the sections entitled “Risk Factors” and “Cautionary Statement Regarding Forward-Looking Statements” in the Company’s annual report on Form 10-K and quarterly reports on Form 10-Q, and other filings it makes with the Securities and Exchange Commission. Nothing in this communication should be regarded as a representation by any person that the forward-looking statements set forth herein will be achieved or that any of the contemplated results of such forward-looking statements will be achieved. You should not place undue reliance on forward-looking statements in this communication, which speak only as of the date they are made and are qualified in their entirety by reference to the cautionary statements herein. Except as required by law, the Company expressly disclaims any obligations or undertaking to release publicly any updates or revisions to any forward-looking statements contained herein to reflect any change in the Company’s expectations with respect thereto or any change in events, conditions, or circumstances on which any statement is based.
Disclaimer
This communication is for informational purposes only and is neither an offer to purchase, nor a solicitation of an offer to sell, subscribe for or buy, any securities, nor shall there be any sale, issuance or transfer or securities in any jurisdiction in contravention of applicable law. No offer of securities shall be made except by means of a prospectus meeting the requirements of Section 10 of the Securities Act of 1933, as amended.
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For OPAL Fuels
Todd Firestone
Vice President Investor Relations and Corporate Development
914-705-4001
investors@opalfuels.com
Media
Zach Gorin
ICR, Inc.
OPALFuelsPR@icrinc.com
Source: OPAL Fuels, Inc.
FAQ
What fueling station did OPAL Fuels (OPAL) acquire in California?
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