OPAL Fuels Reports $85.4 Million Revenue in Q1 2025, Driven by RNG and Fuel Station Services

OPAL Fuels Inc. reported a total revenue of $85.4 million for the first quarter of 2025, marking a 31.5% increase from $65.0 million in the same period of 2024. The growth was primarily driven by significant increases in the RNG Fuel and Fuel Station Services segments, which saw revenues rise by 56% and 36%, respectively. RNG Fuel revenues reached $27.6 million, up from $17.7 million, while Fuel Station Services generated $50.7 million, compared to $37.1 million a year earlier. However, the Renewable Power segment experienced a decline, with revenues falling to $7.1 million from $10.1 million, largely due to the expiration of a contract related to ISCC Carbon Credits.

Despite the revenue growth, OPAL Fuels reported an operating loss of $1.9 million for the quarter, a decline from an operating income of $3.6 million in the prior year. Total expenses increased to $87.3 million from $61.4 million, driven by higher costs associated with sales, project development, and administrative expenses. The company recorded a net income of $1.3 million, compared to $0.7 million in the previous year, aided by an income tax benefit of $8.0 million resulting from the sale of Investment Tax Credits.

In terms of operational metrics, OPAL Fuels operated 26 projects as of March 31, 2025, including 11 RNG projects and 15 Renewable Power projects. The company reported a design capacity of 8.8 million MMBtus per year for its RNG projects and a nameplate capacity of 105.8 MW per hour for its Renewable Power projects. The company is actively pursuing expansion opportunities, with several RNG projects under construction and plans to convert existing Renewable Power projects to RNG production.

The company’s balance sheet showed total assets of $884.9 million, a slight increase from $881.1 million at the end of 2024. Current liabilities decreased to $101.6 million from $103.6 million, while total liabilities rose to $420.5 million from $416.0 million. OPAL Fuels had cash and cash equivalents of $40.1 million, up from $24.3 million, reflecting improved liquidity. The company also amended its OPAL Term Loan agreement to facilitate future capital raising and project financing.

Looking ahead, OPAL Fuels remains focused on expanding its RNG production capacity and enhancing its market position in the renewable energy sector. The company is exploring new joint ventures and partnerships to further its growth strategy, including a recent agreement to develop a new RNG facility in collaboration with an environmental solutions company. The outlook for the company is contingent on regulatory developments, market demand for renewable energy, and the successful execution of its project pipeline.