OPAL Fuels (OPAL) 8 Nov 242024 Q3 Earnings call transcript

Good morning, and welcome to OPAL Fuels Third Quarter 2024 Earnings Call and Webcast. [Operator Instructions] As a reminder, this event is being recorded. I would now like to turn the call over to Todd Firestone, Vice President of Investor Relations, to begin. Please go ahead.

Thank you, and good morning, everyone. Fuels XXXX OPAL Conference the to Third Earnings Quarter Call. Welcome Comora, today Chief ; are me Jonathan Financial Co-CEOs, Interim With OPAL's Adam Maurer Contino, and Officer. Scott of results Fuels available are Investor our the OPAL and of the afternoon, operating section at financial third those released on quarter website XXXX Relations results yesterday and for opalfuels.com. and also website. our available access the for webcast to presentation on The this are call will be completion available XX a of After today's days. replay call, for

remarks, like uncertainties to to remind Before including we our statements, risks, answers questions, that involve begin, and forward-looking contain I'd your you which assumptions.

on a reflect Forward-looking reflect cause X statements this could such date of These are actual undertake of and does not Fuels our contained as Several and of from statements. this update or guarantee not to or the materially events contribute could presentation. X what circumstances of in forward-looking of Slides forward-looking is views results the described call, call. differ to date our that statements and OPAL to any such obligation statements after factors performance, are differences

a on by review business begin and will update operational recent strategic this our results, which then commercial an today's measures Additionally, reconciliation presentation. and a will included is after providing these non-GAAP of and appendix and give call Jon GAAP will the an in results. Adam overview of nearest to measure used quarter's measures the of development highlights the a of definition financial an Scott call measures. A priorities. and certain update, of contain non-GAAP discussion release will

the for Co-CEO Adam call of then turn OPAL open We questions. to And the Comora, now Fuels. over will call I'll

and thank Third participating morning, good OPAL Call. Earnings you Thank Fuel's for and Todd, you, Quarter XXXX in everyone,

leveraging ability and with our new continued line we is drive growth RNG and vertically the This to operation near-term goals across our to the financial both that business. gains expectations in into business model as share results were construction solid to growth continue realize through them longer-term initiatives. both and execute integrated our and against our market strength for develop move projects, RNG our the of value highest quarter's Underpinning

pleased are nameplate year. XXth. operation was of the brought earlier operation approximately combined design Polk commissioning with in RNG Adjusted both XXth and Sapphire million commissioned X.X recently our an into we and EBITDA projects, increase capacity We our When quarter to we increased William, to fuel $XX MMBtus, million MMBtus see dispensing of have part of million share that our the and William, this up segment. to this the improvements have we Significant the continued X.X continued for of were results station both strong in business this through continue throughput construction from and in services in of contribution our our and RNG across higher credit drivers and positive Prince quarter segments. environmental as the trends strength network sales adjusted from EBITDA services Prince

We share into putting million initial track of are well at X.X also design capacity least OPAL's MMBtus on construction. of of

Kirby, now objectives downstream will we placed encouraged remain and into MMBtus year. business initial continued capacity announced of have we design seeing of our and our this this in projects X.X the We're Burlington meet strength that approximately growth segment. With Cottonwood, million construction for

and in our but credits monetization first EBITDA. later into maintaining included good results results highlight, of quarter third that Scott in our outlook adjusted for visibility little a in item cash I the the we current income not our financial saw ITC net are the quarter and million, to proceeds go of in full our want further in $X.X net detail the year One other call. regarding have We guidance. on will

are have in recently investment We credits continued projects projects that that construction. tax operation from from expect entered and

Finally, add results commentary some the I the to election. want of on

Over business Republican control either or House would our a asked of impacted or under year, the how Democratic frequently White be past Congress. were we

biogas to and sectors electricity We today, need and energy Humans emissions sense proven biogas cost-effective It renewable can as continue is such to difficult use waste for utilizes to focus policy agricultural We RNG and decarbonize and the on or politics. renewable an feel them proven that available organic that climate cost-effective what heavy-duty increasing and technology demand, With we because and technology methane. increasing stability. create infrastructure then Jon. creates that, sectors to to do produced rising be productively to see as role over is it or that I'll existing as can baseload serve those down address biogenic doesn't it believe decompose is capture it pipeline attractive either RNG. as generation electricity a the the used trucking. and Jon? electricity power, important with come grid turn local from common as fuel we can partisan an play renewable

you, morning, Thank good Adam, and everyone.

mentioned, XXXX for a With has Polk XX Sapphire we commercial in now Prince operations, OPAL Adam As RNG Fuels. busy commencing have been projects and year William, operation.

project annual Certification million the MMBtu, shortly. is provisions. will Our doubling able operating the for EPA BRR to under received capacity the of for that RNG quarter, RINs certification we follow note organically so updated our over facilities Polk years. the We X.X design in represented past project Sapphire generate an X

productions production months year-over-year XX% is and a were XXXX. line XXXX. quarter X for than production than XX, Third was This higher MMBtus ended our the quarter the September increase more with X.X in RNG second million expectations.

gas having and new in their We online utilization and coming our in-construction with inlet portfolio. are facilities several in gears ramp-up and to phase. Shifting expectations ratios line of reflective seeing design both inlet utilization capacity of

projects annual week. of of XXX% facility. MMBtu start of MMBtu the of net capacity of our million to announced this into California XX the Santa at Kirby construction OPAL in Canyon construction our and put earlier into owns Among operating in now We million have RNG contribute have project to three X.XX addition construction, Kirby total share a to capacity the put happy projects have design representing OPAL. landfill we're in of this design projects annual OPALs will Clara, construction, projects. X.X year six

We With year-end growing and fundamentals quarter's financial our Scott? are beyond. I'll well to will opportunities that, relationships. supportive, and result discuss are expect from Market we turn the positioned headed into to additional it Scott over performance.

our morning our quarter for you, and to filed the call. ending results which today's the Last September quarterly we XX, good Thank press Jon, participants on all earnings detailed release, XXXX. night,

will filed on be XX-Q Our Tuesday.

business quarter was The million in increase Net the revenue million to production and income XXXX. of quarter compared and both The and to $XX.X of third from investments X.X income million of in investment in RNG production quarter quarter sale fuel pricing and Looking Revenue venture RNG sales, QX credit station results as primarily method was of environmental our volumes. credit services as the tax provided to equity Prince of dispense in at as million included including $XX.X our our to $XX.X station and third projects earnings by the million EBITDA the from largely increased the XXXX, third statement. projects $XX.X to the our third not compared increased OPAL's X.X contribution main driven credits. third-party fuel fuel website. timing supplies. of projects, other to RNG MMBtus the well our in reported of in the the for XXXX. compared driver was $XX.X is XXXX, $X.X in quarter to production was William from the $X.X compared was due is XXXX. Emerald The is our on million revenues environmental including was third million as the services results, share for the growth which sales. MMBtus release revenues reconciliation of and increase by partially all for quarter joint timing as driven in quarter on in for morning both RNG to in third million updated we where million million quarter the investor third $XX A this the third RNG presentation yesterday to in compared Adjusted the quarter GAAP as of difference

project projects as item reflect statement separate we've to associated a on income phase. line As that a costs are with in added and start-up start-up reminder, preconstruction costs the development in or

compared as to in included million in million increased power $XX.X $X.X primarily third in due quarter RNG includes $XX.X increase certain stations. revenue operational $XX.X Station of the expense quarter $XX.X add-back EBITDA. million costs development temporary equity quarter expenditures investments are The Renewable and were project the downstream item quarter associated Prince nature and of Year-to-date and that for expected are These until revenues for million revenue construction the are $XX.X the mid-XXXX. be XXXX. third million, Fuel to $XX.X RNG and of the for in line the of statement, This result Pipeline. facility. XXXX, segment virtual with costs addition which to was third compared and William on million primarily and Virtual fees, was $XX.X relating the XXXX. Services a $XX.X to million costs EBITDA million the start-up to in million the segment was as of RNG quarter's development Prince project to includes quarter The William third start-up with marketing service third of adjusted in total compared our increased add-back $XX.X the revenue costs ongoing the to the revenue. incurred capital method incremental to was million quarter adjusted income fuel the pipeline to respect

million up an senior period XX-month to over Our provides of facility draw loans of revolving secured million credit. and $XXX term $XX credit

As of of utilized the letters on million issue and September have $XX.X our down revolver XX, availability was million facility, we drawn credit. to XXXX, of $XXX.X

cash, availability XX, September and of cash from of $XXX.X under facility to cash million million, We funding believe and the As liquidity $XX $XXX.X are investments. sufficient consisting of credit flows and of operations meet needs. anticipated our was million short-term existing XXXX, equivalents our liquidity

we it Adam current to back now Jon As and turn maintaining our are XXXX I'll for guidance. remarks. discussed, concluding Jon

displace with closing, to to deliver interest and and integrated turn I'll mission operate biogas fossil products low-carbon in intensity call for happy this and operator results. that fuels reliable with conversion all that for committed mitigate OPAL cost-effective quarter's the Thank the we build are In our you industry-leading, We change. OPAL's climate over Q&A. furthering together energy to partners remain Fuels. capture projects best-in-class and your vertically

of Instructions] comes Blair first TPH. [Operator the from of Our Matthew line question

election a more. like areas to from How the on Adam, I the that appreciate ITC results fuels. easier the But linings results? negative any little your the could here? that I little RVO silver could that you initial think is are for DX there the are much there we election. permitting forward? the see dig do Maybe general any take And Are get comments I'm bit bit curious, into renewable election risk like areas and going a

question, that and call. Matt, appreciate for I joining thanks the

a RVO the regarding question election your first of So on outcome. couple I guess things DX volumes.

important I a there's think of things to remember. couple

is anything there think within that fuel then constituencies going if the those are of down RVO We're too we the impact some of with potential liquid regarding liquid where aligned strong because DXs see into standard or don't that the opposition they biofuel to lot is same participants low, set actually Republican First those of volumes really renewable markets. want those in DX have stronger a DX RIN volumes. you volumes other

all other in strong folks discussions supportive DX the with RFS, everybody of in of is So the our volumes.

RINs. fuel is thing renewable the the is would billion objective that statutory DX Second XX cellulosic standard of say I

being that's cellulosic would Doctor and add I that growing we sense, with investments a in reiterated more time of and and in in also we are the those those what perspective IRA red amongst DX of also the have in volumes made been that maybe an time again, supports the most RVOs, areas lot continued lot facilities. we sense, support RVO growth some So consider a Chevron so the from folks think, think and some and category.

of what and has there So to methane more credit. that bipartisan, we are these along is knows, cellulosic cellulosic more waste times, place, but continue Republicans of climate think I do do EPA looking seeing about as for going capture supported. believe we and in And come we really emissions, A the the smart policy. we're everybody ask waiver to lot people think no credit waiver is be ability. the And

on and biofuels, in for DX credit. a pricing, DX for an potential be also if could a You which more has where situation cellulosic there's impact those support that's supportive agricultural waiver

there's the back does, we be know think not. we could that waiver it support additional why comes If it. So there of cellulosic for reasons don't if plenty credit or

how think correlated it's I prices. our one if the aren't to mentioned, formula works, also folks gas of competitors aware of inversely also

There long credit their correction. technical And a about potential in from prices, that, So industry support of far equipment it of in should downdraft is outside was is general, that a biogas the Republicans landfills saw we about not as goes. In noted piece in X Republican the that's if there also Section of well credit. of pump the RFS, RNG be waiver as inclusion XX. also comments methane supportive for from in hearing by the that first that conversion D.C. abatement and we the that tax Senators, came supported after talking cellulosic feel

outcome that a believe business power what We believe in we and and about could in supports generation a really energy the we it we good really in or last one in it really of baseload election trucking to could mean could climate like baseload can middle energy think mean potential what in on eRIN both could of of for for is that terms heavy-duty a we throw of power AIs sense squarely gas dramatic using sense. And focus for industry lot it fits it's CNG data for regarding for know also the as we So station green capacity, for what gas common or smart centers. and areas piece more and the do answer the parties lot policy. investors red really are And electricity increase policy excited terms is a of have whether fuel I what bucket. of impact for to is the or we're kind renewable on a our a excited sectors. about starting transition people think service natural mean What or natural are policy that RNG that how for are our election new green

It's any a limbo but we that outcome of I And policies. there. on of was have focus think now we the stop that obviously work I'll behind different us, we've could on, stuck because on in we lot in be numerous that the feel do something positive there lot been So excited like election a done a election we're fronts.

are then And good. forward. that understand Sounds we most of RINs sold your

quite quarter. We price also up bit in noticed that realized the moved your a

RINs it forward was I $X.X guess, RIN one, in you XXXX I And of to the then in last prices? is when is Or think it your do price sold changes much so RIN a how XXXX? of share point could two, gallon versus the for you is production spot still and $X.XX sell connected forward, quarter at sale? the at locked

question that appreciate I there. No, Yes.

is that means at question deliver the forward, have them for our them of is RINs we those when part we forward price we that of what sell current transact XXXX. And say then is quarters. the last and we we the in So sold whatever all

realized So third that entered earlier the in transactions sales and third those year you quarter, in those the delivery. for that that price we saw quarter were into

then forward in them. sell you deliver period lock do you you you whatever agree that to price deliver in and on when your them sales So the them

Got it.

Okay.

contract coincidence So prices it's moved up spot basically that and just a moved the price up. your

Capital. question line comes Alex the from of of Marathon next Our Kania

the they're curious your about right outlook. and I'm evolving. markets thinking good of on about view voluntary just Pretty how now kind

much of you're with a deals streams gas a new natural broader scrambling And hyperscalers to theme power than really an maybe something wondering like be for Is potential they today? there into conceived. that's about the decarbonize initially this and seeing like as on help to hyperscalers going that that potential longer-term and that reliance about data thinking whether kind the going there's market Or term opportunity? as capacity. greater can is be center find to Just the I'm in maybe opportunity gas will

again. Adam is This Yes.

financial interest From continue market offtake term the here So things highest the voluntary things, still as We're offtake the touch the Europe, to power. molecules. users see some optimistic we're market what to do with side we're medium of attractive a going of waste that again for pursuing do some could the value in us term about a people couple to biogas really policy we can solar But eRIN other what is standpoint. there because grid excited the And important be from that to see a that generation fuel green And be that markets to could we potential I be renewable more, our emissions. D.C. offtake premium a is a about give longer-term longer-term side U.S. are that probably increases in it's the think green these could from market transportation molecule same eRIN applications I we developing And that baseload and in in probably But well. later we'll are that electricity as interested where intermittent. on that attractive perspective electron baseload, we can of not monitoring those industrial there. financial the stability. that a realizes of out reports to power. It in there And being offtake have an answer side everybody which and that but We about may of power more PPA you're green market, in there bit done of that things, from that us. little green attractive electricity interesting could for think lot potential some wind we're be to referring and what I premium as on or you think a renewable we're be think for some the from for for published starting be think really on develops see the more baseload and maybe

great. a follow-up would the since the you as articulating door, just Maybe kind on Europe that Great. the, just thoughts be on well opportunity opened thoughts of

Yes. with that the over the And full about Europe now to complicated think of end right the you is Europe in is through going tracks little talk in how an in about the thing. and export to people export regulations market here and Europe happens I'm November, U.S., encourage we of sure within towards the Commission the there. a the some how feel what U.S. changes we're year. and I and towards there, pathway, that various look happening end are Europe. RNG is molecules What's there European for here between reevaluating if and at regulatory guidance the month ISCC certification is the sort which And the the changes markets U.S.-produced going of month, pathway their the countries But for go

market, and end month regulators the So markets. for reopen then we're of pause RNG with these European work some to to those this offtake how a going towards of the up European there's be export working to on

marine really a and on obviously really We it's being so industry of to is markets all ships think be market So much the sorts not we well. market from something. on to it voluntary be be there think landed the going But where some going put new other it's the interesting. potentially and attractive places it's there are compliance industries, various there costs whether as over

tracking that a European these get something of regarding there's the biogas out now that the some of to maybe using going be of it's into RNG path will trade through and work issues reg one the So potentially we basis could forward start to pathways. of can be positives reforms those start as have EPA is opening we the some a sorted out. came to exports that system think we that And likely U.S. but up Maybe Europe, using. regulatory that

Our the Ryan of B. Riley. comes from next question of Pfingst line

under the less more one think regulations? would for broadly the just you And administration pick helpful. on I any guess potential that be M&A Do election. up M&A the new given on color you're could restrictive seeing

John Ryan, here.

out opportunities there's and think good looking always to that continue maximize transactions, to valuation value at or market good at we that number close. will been So transactions value, of fruition reach we've M&A really we're of give M&A last comfort our the the integrated we're track seen we're better. get the lot that and over in and seeking that we that we're We been I'm a course they really of as But that. as M&A a about the with transaction market for us the on look and and of thinking environment right arise. Clearly, have our have shareholder growth in lot result that a really creating the is December. vertically organic Enbridge the model however, this of support didn't a seen private marks area. and And marks year, the

is industry the fragmented. quite So

we and a in this of momentum we're in that business that fueling business know, recently plan, that headed comfort answer price. gives there's pretty we a market, gathering consolidation of we note, and signals short Apollo a downstream continue. where in is one all lot we room transaction of are The Texas model. strong Apollo; closed industry. side, for stations our bought the see That on see terms of where for again, network in will opportunities small we As think good and us, the in But

That's helpful.

discussions bought production like natural my full all? UPS accelerated it plant looks and nat September, at the Have the of its For gas-powered in your gas one, Jamestown at those customer trucks. engine of XXX second developments Cummins started

about fuel again. excited for potential This station is segment. the service We're really the Adam

Cummins in a about or it's good the market. gas really of us we pieces think offtake trucking. has heavy-duty that excited fuel is just gas transportation we're reminder, got the than X is XX-liter to strategic really OPAL be natural versus a as As Fuels, rollout, And long-life for renewable value quite is it's diesel. in And now, there. prospects as And natural providing One listeners, got frankly, impactful. I long oil largest stays and of selling right can would really remind the are natural gas natural engines eye on gas, it China cheap potential the base XX-liter they sitting more in reserve the the see. probably to U.S.

sorts So of disinflationary benefits. than there's energy security all it's It's because cheaper diesel.

think be You and I reductions. time marketing on the didn't Cummins heavy-duty still get JV demand And which got all of and think molecules, say to say it's here lot to aftermarket all things, right this time, get XX% whether the product then rollout though, understand model. happening still we've those a that thing. just electricity stress and that And challenges leaving natural it sitting whether it that performance introduced. experience, anybody to all have electricity transporting of you thing XX% this cost-effective, around. demand proven a probably and those owns like battery XX-liter happen those think things. out, been gas sort support last do there we power and grids, side the And is our lot this we of engineering the the producing that ways XX-liter it's little XXX% a on unique of of we on when not looks And and difficulty I'd molecules XX-XX wants. attention this emission saw disinflationary. And the the technology, sites. and never side as what's engine was and around, And weight time We get with also battery a is how And hydrogen zero-emission to more I the now really trucks, want fast for same was and on the as goes aside these

of the So same could all think was for and the accelerating we adoption we're beginning what XX-liter many as the time, be availability the product was of Right by XXXX, at mentioning, we is don't at OEMs I heavy-duty XX% product. we yet. When are primed offerings. at the the really OEM how have now, XX% the of covered offering product looked market of

Now we're is taking that Freightliner the product. orders to going begin encouraged on

of to, beginning see now don't think us in back year know, potential. and heard about with that of quarter start conversations product. that that economically really I And the I a first good to attractive. take XX%. lot the We're 'XX I of we're really delivering all are will industry up be having or also on But next that and those the growth and new across a at really will premium encouraged with that the where us looking we're have suppliers high others price going the And it. fleets we working to and in equipment product felt industry,

some to trucking regulatory we policy up this are it. on bit in the been other ease answer of those the yes technologies. So, think digging diesel accelerate and some technology some also really thinking terms the and like in that where fleets industry about of which have feel may versus support on a is could a questions really side, roadblocks this as utilizing public There little those good answer other to

seeing a the many it first UPS remind would being with growth UPS that folks, built the say for think even fleets we really aren't people those shorter XX/X are of service because the it. about that done thing fleets there nice since about XXXX. have I fleets. more. out, engine, worked good out product without worked looks high it, I there. there. roll you for us of just uptime. We we've to is the stations those XX got high to customers successfully. had mentioned a that and the child built poster largest major for look UPS one, And we're deployment So like. would have engine get we station successful in done XX-liter and it's I excited list on folks And And really reliability, that The the those We're excited we've then, as We basis, really the And what XX-liter still and think these our that's

get do work we're have cost work to excited some as We we're with as rolls possible. product So out And and see sort to effective to partners it. still in about it do have there. through excited some our channel to still We economic the make of how XXXX. that to

of comes Brothers. next line from question Shere Our Craig of Tuohy the

little into like dig XX-liter to a CMI question. further Ryan's engine I'd

fuel rollout, They as up know X X, any the to with probably all and sales up X, already one time. before there these time, got buy course, that never are ramping Of trucks as hope of orders engines. opined. over as the are they new would But those to you years up needs if ahead can deliveries fast be teed fill they for

So what what tee I'm further longer-term and downstream that asking are fueling agreements guess notable could front-loaded up the development? volumes your for I is multiyear prospects

would say I this it way. So

or in site to And I multi-location do location what think does of I sense for testing companies we're they we with those wave. early innings first on programs. find you the customers programs And the they're here defined fleets sort those of really you're talking those thing makes And sign comfortable the We first typically to us. sort likely at or and and programs in the still after through, it. that locations of through think go think one are early of that a of either innings are dedicated terms a but fleets, fleets, aware kinds long-term maybe those go of refuse it's lot vast people sort what getting kind fuel of looking in adoption that, are where distribution fueling of broader of thing. come of up thematic where and have agreements. really that about we're majority private OPAL because centers still supermarkets But

the the X. given your years? your an of LCFS of back, Got if CARB. on get last has I'm the in been year LCFS RINs late mistaken, market, from transportation were the have degree great you. weighting today, that could degree any pricing, gets next the focus supposed we mojo on its to obviously, kind of couple But the market projects And not to or to implications update And LCFS

of landfill-oriented certainly, that don't company to RIN-based. a majority principally still attract credits, significant and only the LCFS We're Landfills of be Jon. on the credits. credits improves amount help. is this principally, our still price can as are We're But LCFS going

side for bulk with carbon is we that downstream have supply. up get business, LCFS intensity in and third-party aside, XXZ and an we fueling of as well, the revenue. dispensing substantial we That On coming utilize as the where our substantial our low California, credit capacity of

So we're as where that the that's likely price see that growth. to improves,

stay of terms a In we'll company. mix, our principally landfill

that look But off on the in to at We and as perhaps project. of next course are California. continue We're group. of roll to that working credit the from included happens, completely, always strengthening price. our reduction bank back to the turn sometime have and in to out And low our everybody positive, other perspective, an in we'll the we opportunities the the during year, we not do targets in we And the to that. we space, starting from Sunoma expect CI projects direction. but carbon the outlook see start see be some expects Obviously, CARB

that today. forward announcement So later we look to

Yes.

I from little week. that a up think going is think this beating on a They've price perspective, ticked I today. bit

I sensitivities about our pricing XXXX LCFS us around results. will the think help credit. and as to go we'll currently per had to it $XX up, we're Jon we mentioned, get if And guidance, prices those sitting into talk

the comes line question Cheng Paul next Our Scotiabank. of from of

could. Two I questions, if

for I think for the one first Adam. probably is

LNG can of to they shift similar have seen One you as their competitors service get the they in station have a a fueling a of what seen development? comparing your in the producer. if percentage have Wondering said up RIN

market. vertically those we also dispensing and lie as Yes. RNG a shares. way the business dispensing the those up is faster economics or capacity, we the dispensing impacted that's by supply having OPAL model what put growing as production did the where higher within for integrated we've value than drives sort RNG station the out seen capacity. either I It's not paying RIN our of well and one chain. is being reasons sure, of together shares as the tightening mean, of why by

model would else That's the the RNG have business like we or fees I OPAL positioned. way where maybe been sort rising is So agree termed somebody as of that fees marketing it. dispensing

more RNG or for We also that have our fact our like the to control impact bit to little dispensing grow production. we destiny capacity out a that over continue

be know Adam, just willing will to don't whether you share.

between I up split will sort receiving go you ratio is now that or have it XX-XX. Is you pushback that you room downstream number any already more of the the think minimum. still that the to are historically that the and and think upstream and XX-XX or can share that whether

I dispensing those mentioned, going I Yes. into this, get to not though, that tightening. numbers. We're would had is say capacity as specific

encourage to numbers the are So and do some you our I if up, want JV partners, numbers so. of those to you to going give

Okay, that next ITC remaining is of for available fair. for And you the the question some to monetize you monetize What year? year. same the for next

by projects to you we'll the those we way. have first year, pointed that we to credits, Yes. With three an over significant into This as Scott, in liquidity clearly help our out, of credits as sale fuel seeking our over and is few place sell service the ITC respect be sell program ITC we ITC ongoing ITC projects several three a did the this is more will The so for placed credits were years. years. projects. growth of source And to the the be next service next

three for what that ITC? debt year? Scott, how then for the calculate next the that me remaining can you help out is we And projects

if numbers, using. approximate one to base meet the can we're but specific be we'll and of is XX% XX% of to XX% credits adder, that get U.S. the going and typically not the percentages you ITC cost the the XX% those the domestic CapEx be would projects, So into for content are

Okay, thank you.

we'll Thank you, our to question. move next

from question Goldman Sachs. of Bubes the next of Our line Adam comes

Your line is now open.

Hi, on And XXX% same compared XXX% plants little the structured good morning. there Cottonwood how partner are look projects, do construction. project. Kirby smaller teed the as are partnership what that as extent larger JVs? on project equity structure a the To Congrats, projects equity as and the economics placing similar follow-up, projects in looks up? to some the It your of like

here. Hey Adam, Jon

questions of in you've got of there. up couple different mixed So a kind

we're ownership into WM, that number there. with project the of and second entered And really pleased the we a project Kirby agreements XXX% rights So yes, represents gas there.

reaching Obviously, you're or X,XXX economics. go such projects. X,XXX, Jersey, SCFM the industry, a you've ownership across have County is well the work we you XX-XX County Polk within there to look But we have partners ventures a relationship, I significant Prince to board. of to And great in small relationships goals Emerald think waste are counterparties management that aligns in standpoint relationships that challenging XXX% Waste partner those projects. that municipal like size projects as down our Florida Burlington the down smaller-sized or projects, across It's different and of it XX,XXX with to people SJI. opportunities the objectives the and this we as or of perform from that Solid up relationship further got of and on on really we in mix counterparties are we New scale those, of a have that as Authority, William make what for have as project, size from discussed even economies and our really the the the build have gas different X,XXX, GFL, William other the economies great Certainly, before, Sapphire to of the New the One really those GFL, we'll in and XX-XX industry. Atlantic are scale like we seeing we we build River size which and see the those get County Prince and rights, joint County, and aspect we've have projects. our to

Kirby to pleased with X,XXX we're X,XXX were able that in We others the that project MCFM range. are size seeing we do that and that to

That's I fuel then it. there. in in stations And strong really Got appreciate the helpful. margins the color EBITDA quarter.

margins? I acceleration rate way to of margin up XXX this profile were basis What's about think What the think right points run drove in sequentially. business? the the margins

Yes.

build third pleased So is fuel well. where it in construction business came increasing service but as improving We're station strong RNG fuel the gain margin lion's on fuel the well. station likely the business where quarter And those the of dispensing will release, say backlog I also we the capacity. blend three construction queue we the in be was our the think sort in increase of I'd of segment. through it a services, as quarter, service That the the share across we side those had don't stations. Also margin business. from I of share the of it this it But was throughput here. margins that across in that had higher to Adam on some second think margins was in our board areas

And then for last one me.

the update any RIN DX XXXX Any offtake on coming around Just post-election? are how commentary conversations forward developing? how those market is

RINs down last volumes for within are some starting I our the and see wouldn't couple activity. you, a some we sell yet, We telling XXXX of we transact just say say, month, they to of XXXX. the I'd level. maybe to days, I is activity, they're would somebody last around there's a lot heavy Yes. trading in say, did $X but started seen of Well, dime haven't post-election the or something.

end prices mark. I to $X And really move the mark. converging year see around we prices get the around XXXX, the those closer $X we and the of strengthen the as into to expect

Thanks so much.

showing Thank like time. no it you. I'm Adam back turn this at remarks. to to I'd for questions further closing now Comora

hope day. appreciate has the All we interest OPAL right. of a Fuels and everybody's everybody great rest Well, do in

in conclude your participation program. you Thank conference. today's This for does the

disconnect. now may You