Two of Fortistar’s portfolio companies, Fortistar Methane Group (FMG) and TruStar Energy are merging to form a new, fully integrated renewable fuels supply company, Opal Fuels.
FMG is a developer of renewable natural gas (RNG) facilities and one of the largest independently-owned landfill gas-to-energy companies in the US, while TruStar Energy is a market leader in the supply of RNG for the transport sector.
The merger creates a complete, integrated business that handles every step from project development and construction to producing, marketing, and dispensing renewable fuel and the associated credits. The combined company will maintain one of the largest portfolios of internally-produced RNG to ensure a stable renewable fuels supply for its customers.
The new combined business offers a platform for growth by converting its landfill gas electric projects to RNG facilities and new greenfield development of animal waste digesters and new landfill projects, which will supply fuelling stations including renewable hydrogen as an emerging fuel.
Mark Comora, president of Fortistar, said: “In the nearly 30 years since founding Fortistar, I have never been more excited about the opportunities ahead.
“Amid wildfires, heat waves, hurricanes, and other extreme weather that punctuated a tumultuous 2020, the world is now more determined than ever to address climate change. Opal will lead the effort to decarbonise the US’s transportation industry, which generates the largest share of annual greenhouse gas emissions, by supplying clean, sustainable energy fuelled by RNG.”
In 2020, TruStar completed 42 natural gas fuelling station projects across the country, bringing its total completed projects to 380. FMG is in the middle of a $300 million (€248 million) expansion programme to complete the construction of the fifth of 12 RNG projects that together will provide over 100 million gas gallon equivalents annually of RNG.
“Opal’s vertical integration creates a powerful platform to maximise the value and deliver with certainty the benefits of RNG for both production partners and end fleet customers alike,” said Adam Comora, co-CEO of the combined company.
“This new venture creates enormous opportunities and scale to capture significant additional market share in this rapidly-developing industry as we continue to raise and deploy capital.”
Jonathan Maurer, co-CEO, commented: “The combined company is positioned to be one of the fastest-growing renewable fuels firms in the country. Our companies’ collective expertise and experience mean we have the capacity to take on newer, larger, and more innovative projects and deals than ever before.
“We are enthusiastic to play an important role in decarbonising our country’s transportation sector.”