Opal Fuels Inc. · NASDAQ:OPAL
Opal Fuels — SPAC Merger (May 2022)
31 slides from Opal Fuels's SPAC merger presentation, May 2022
Slide 1: Net-Zero Now Investor Presentation
Net-Zero Now Investor Presentation May 2022 1
Slide 2: Disclaimer
Disclaimer For the purposes of this notice, the “presentation” that follows shall mean and include the slides that follow, the oral presentation of the slides by members of management of ArcLight Clean Transition Corp. II (“SPAC” or “ArcLight”) or OPAL Fuels LLC (the “Company” or “OPAL”) or any pers
Slide 3: Disclaimer (Cont'd)
Disclaimer (Cont’d) These forward-looking statements also involve significant risks and uncertainties, many of which are beyond control of the Company or SPAC, that could cause the actual results to differ materially from the expected results. Factors that may cause such differences include, but are
Slide 4: OPAL Fuels and ArcLight Combination Creates Publicly Listed RNG Leader
OPAL Fuels and ArcLight Combination Creates Publicly Listed RNG Leader Transaction Overview • OPAL Fuels has entered into an agreement to combine with ArcLight Clean Transition Corp. II (“ArcLight”), a publicly listed special purpose acquisition company with ~$311MM of cash currently held in trust •
Slide 5: OPAL Fuels: Led by an Experienced Team with a History of Value Creation
5 OPAL Fuels: Led by an Experienced Team with a History of Value Creation Name & Title Years in Industry Milestones Prior Experience Adam Comora Acquired, built and managed Co-CEO 9 dispensing & monetization projects since 2012 Jon Maurer Acquired, built and managed Co-CEO 30+ capture & conversion p
Slide 6: Leading End-to-End RNG Provider to the Transportation Market
Leading End-to-End RNG Provider to the Transportation Market Vertically-Integrated, Focused on Transportation Currently at Scale, with Substantial Embedded Growth 5 operating RNG & 19 renewable power plants Capture & Conversion + Dispensing & Monetization 7 projects under construction(1) 15 projects
Slide 7: Vertically Integrated Model Enables High Margins and Diversified Revenue
Vertically Integrated Model Enables High Margins and Diversified Revenue • Through vertical integration, OPAL Fuels is able to retain value at all levels of the value chain (i.e. RNG, dairy, dispensing, etc.) • Benefits of vertical integration are: ✓ Incremental gross margin of ~$0.90 per GGE with R
Slide 8: Executing in the RNG Value Chain for Over 20 Years
Executing in the RNG Value Chain for Over 20 Years 38 350+ 273 42(1) Biomethane Projects Fuel Station Projects Completed Employees States with OPAL Fuels Operations Commenced Constructed 14 LFG Acquired 28 LFG Acquired 9 LFG Constructed 12 LFG Acquired 2 LFG Acquired 4 RNG construction operations of
Slide 9: Executing on Our Strategy
Executing on Our Strategy $41MM 5 19 75 20MM Operating Renewable Dispensing Stations 2021 EBITDA Operating RNG Projects GGEs Delivered in 2021 Power Projects at YE 2021 Accomplishments Since Announcement ✓ 3 New RNG Projects in Production: Sunoma (dairy), Noble Road (LFG) and New River (LFG) project
Slide 10: Investment Highlights
Investment Highlights Vertically Integrated Across RNG Value Chain At Scale Today, with Substantial Embedded Growth Proven Team with Top-Tier Sponsors Fully-Funded Plan with World-Class Partners 10
Slide 11: RNG Market Fundamentals
RNG Market Fundamentals
Slide 12: Transportation Demand for RNG and D3 RINs is Multiples of Available Supply
Transportation Demand for RNG and D3 RINs is Multiples of Available Supply RNG covers less than 1% of the U.S. heavy duty market D3 RIN statutory requirement is multiples of RNG production BN GGE U.S. Heavy Duty Diesel / Gasoline and NG Commercial Fleet BN GGE U.S. RNG Volumes – D3 RINs 50.0 50.0 14
Slide 13: RNG Has an Immediate Positive Impact on Climate Change
RNG Has an Immediate Positive Impact on Climate Change RNG starts with methane capture… …and ends with fossil fuel replacement U.S. Methane Emissions(1) Annual CO2 Emissions for a 100 Truck Fleet(2) 17,097 17% RNG can help eliminate 28% of U.S. methane emissions 8,259 10% Landfills Dairy RNG 3% 153
Slide 14: The Market for RNG is Highly Supportive of OPAL Fuels' Business Model
The Market for RNG is Highly Supportive of OPAL Fuels’ Business Model ICF Forecast(1) May 3, 2022 Henry Hub Price Henry Hub Price ($ / MMBtu) ($ / MMBtu) Brown Gas $3.08(2) $7.84(3) D3 RIN Price Implied RIN Value D3 RIN Price Implied RIN Value ($ / gal) ($ / MMBtu) ($ / gal) ($ / MMBtu) Renewable Fu
Slide 15: Vertically-Integrated Scaled RNG Platform
Vertically-Integrated Scaled RNG Platform
Slide 16: At Scale Today, with 24 RNG and Renewable Power Plants Online
Capture & Conversion Segment At Scale Today, with 24 RNG and Renewable Power Plants Online 5 19 ~26MM GGE(1) 124 MW Operating RNG Assets Operating Renewable Power Assets Design Capacity per Year Nameplate Capacity RNG: Imperial RNG: Greentree RNG: Sunoma RNG: Noble Road RNG: New River Location Penns
Slide 17: Visible, Near-Term EBITDA Uplift from Multiple Projects Under Construction
Capture & Conversion Segment Visible, Near-Term EBITDA Uplift from Multiple Projects Under Construction 7 1H 2022 In-Construction Projects(1) On-Line Dates Starting Landfill: Pine Bend(2) Dairy: BioTown(3) Dairy: Vander Schaaf Dairy: Hilltop Location Inver Grove Heights, MN Reynolds, IN Stockton, CA
Slide 18: Downstream RNG Platform
Downstream RNG Platform
Slide 19: OPAL Fuels' Fuel Stations Provide a Direct Pathway to Qualify for RINs and LCFS Credits
Dispensing & Monetization Segment OPAL Fuels' Fuel Stations Provide a Direct Pathway to Qualify for RINs and LCFS Credits OPAL Fuels is the #2 Operator of RNG Stations in the U.S. Million GGEs Platform Stations as of YE 2021 Delivered in 2021 Clean Energy Fuels ~550 403(1) 75 20 RNG Private A 65+ No
Slide 20: Dispensing and Monetization Integrated Solutions Represent a Distinct Competitive Advantage
Dispensing & Monetization Segment OPAL Fuels' Dispensing and Monetization Integrated Solutions Represent a Distinct Competitive Advantage Vertical Integration + Complete Offering = Security of Offtake Building Stations… ...Operating and Servicing Stations… …and Supplying Top-Tier Customers(1) ✓ One
Slide 21: Embedded and Actionable Hydrogen Fueling
21 Embedded and Actionable Hydrogen Fueling • Strategic relationship between OPAL Fuels and BayoTech, a developer of on-site hydrogen generators and “gas-as-a-service” offerings • Multiple hydrogen stations are on track to be completed in 2022 with first stations operational by the end of the year w
Slide 22: Financial Summary
Financial Summary
Slide 23: Full Year 2021 Financial Results
Full Year 2021 Financial Results Volume Sold (Million GGE) Revenue ($MM) Adj. EBITDA(1) ($MM) ’20 – ’21 Growth: 114% ’20 – ’21 Growth: 41% ’20 – ’21 Growth: 158% $166 $118 $41 19.9 $16 9.3 2020A 2021A 2020A 2021A 2020A 2021A Demonstrated strong growth between 2020A and 2021A underpinned by an increa
Slide 24: OPAL Fuels: Solving Two Climate Crises with One Vertically Integrated Platform
OPAL Fuels: Solving Two Climate Crises with One Vertically Integrated Platform The Challenges ✓ ➢ Reducing methane emissions is the most immediate step to slow climate change ✓ ➢ The transportation sector is the number one greenhouse gas emitter in ➢ the U.S. OPAL Fuels' Solution ✓ ➢ Capture methane
Slide 25: Appendix
Appendix
Slide 26: D3 RIN Market Considerations
D3 RIN Market Considerations D3 RIN Market Commodity Drivers D4 and D5 RINs are Directly Correlated 1. Obligated parties meet compliance by buying a D3 RIN or a D5 RIN and a waiver credit (“CWC”) $2.00 • As such, the D5 RIN + waiver credit is the theoretical ceiling price for D3 RINs $1.80 • D3 RINs
Slide 27: Reconciliation of Non-GAAP Measures
Reconciliation of Non-GAAP Measures Adjusted EBITDA(1) • The following table reconciles Adjusted EBITDA to net income for years 2020 and 2021 $ in thousands 2020 2021 Net Income ($25,358) $41,363 Adjustments: Interest expense 6,655 7,956 Depreciation and amortization 8,338 10,653 Change in derivativ
Slide 28: Risk Factors
Risk Factors Risks Related to Government Regulation of Our Businesses and Our Third Party Relationships We are dependent on contractual arrangements with, and the cooperation of, owners and operators of biogas project sites where our Biogas Conversion Projects are located for the underlying biogas r
Slide 29: Risk Factors (Cont'd)
Risk Factors (Cont’d) A delay or failure in the certification of such Environmental Attributes could have a material adverse effect on the financial performance of our Biogas Conversion Projects. Maintenance, expansion and refurbishment of our Biogas Conversion Projects involve the risk of unplanned
Slide 30: Risk Factors (Cont'd)
Risk Factors (Cont’d) Risks Related to the Business Combination and ArcLight Our Sponsor and independent directors have agreed to vote in favor of the Business Combination, regardless of how our Public Shareholders vote. If the conditions to the Business Combination Agreement are not met the Busines
Slide 31: Risk Factors (Cont'd)
Risk Factors (Cont’d) You will not have the same protections afforded to stockholders of companies that are subject to such requirements. The dual-class structure of New OPAL’s Common Stock following the Business Combination may adversely affect the trading market for the shares of New OPAL Class A