Alex Kania's questions to OPAL Fuels (OPAL) leadership • Q3 2024
Question
Inquired about the evolving voluntary carbon markets, specifically the potential for long-term deals with data centers/hyperscalers to decarbonize their natural gas usage, and asked for more detail on the company's view of the European RNG market opportunity.
Answer
The transportation fuel market remains the highest value offtake for RNG molecules. While they see interest in voluntary markets, the eRIN policy for renewable electricity is seen as a more financially attractive near-term opportunity for serving data center demand. The European export market is seen as a potentially attractive medium-term opportunity, particularly in compliance markets, but is currently paused due to regulatory changes (ISCC certification). They are working with European regulators to reopen these export pathways.