OPAL Fuels Inc. (NASDAQ: OPAL) announced it has entered into a master agreement to monetize $100 million of Section 45Z Clean Fuel Production Tax Credits over several years. The company expects the first closing to occur in the current quarter.

Section 45Z of the U.S. tax code, known as the Clean Fuel Production Credit, was created to encourage production of low-carbon transportation fuels. The credit has received bipartisan support in Congress.

"This agreement furthers OPAL Fuels' ability to enhance value from our operating platform and new facilities as they come online," said Adam Comora, Co-Chief Executive Officer of OPAL Fuels. "These proceeds will contribute to our overall corporate liquidity for future growth investments in both new RNG projects and fueling infrastructure."

The company stated the agreement supports its strategy to enable fleets to replace diesel with renewable natural gas and compressed natural gas. OPAL Fuels operates in the biogas capture and conversion sector, producing low-carbon intensity renewable natural gas and renewable electricity.

The information is based on a company press release statement.