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Opal Fuels Inc. Faces Uncertainty Amid Potential Changes in Renewable Energy Incentives

Opal Fuels Inc. Faces Uncertainty Amid Potential Changes in Renewable Energy Incentives

Opal Fuels Inc. (OPAL) has disclosed a new risk, in the Taxation & Government Incentives category.

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Opal Fuels Inc.’s financial performance is heavily reliant on government incentives for renewable natural gas (RNG) and renewable power projects, which are subject to change. The company’s growth strategy could be adversely impacted by alterations in tax laws, regulations, and incentives, such as investment tax credits and Renewable Portfolio Standards programs. Proposed IRS regulations and potential changes in the Inflation Reduction Act (IRA) incentives add uncertainty, potentially affecting the profitability and financing of RNG projects. Any reduction or repeal of these incentives could lead to decreased revenues, increased financing costs, and challenges in acquiring new projects, posing a significant risk to Opal Fuels Inc.’s business operations.

The average OPAL stock price target is $3.56, implying 61.09% upside potential.

To learn more about Opal Fuels Inc.’s risk factors, click here.

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