10 Best Green Energy Penny Stocks to Buy Now

5. OPAL Fuels (NASDAQ:OPAL)  

Number of Hedge Fund Holders: 14  

Market Capitalization as of September 4: $608.33 Million

OPAL Fuels (NASDAQ:OPAL) is a leading player in the renewable natural gas (RNG) industry and focuses on RNG as a green energy solution for vehicle fuel, particularly for heavy and medium-duty trucks. The company holds the position of the second-largest RNG station operator in the United States. In addition to RNG, OPAL is involved in hydrogen fueling infrastructure development, which diversifies its green energy portfolio. The company is uniquely positioned in the supply chain, with access to key resources such as landfill emissions, animal waste, and wastewater for RNG production.

OPAL Fuels’ (NASDAQ:OPAL) involvement in RNG supply from landfills, wastewater, and animal waste ensures a steady stream of renewable feedstocks.  The market for RNG is poised for robust growth, driven by increasing demand for cleaner energy solutions and government incentives, such as those provided by the Environmental Protection Agency (EPA) and the Inflation Reduction Act (IRA). These incentives, including an $8 credit for landfill gas, enhance the company’s revenue-generating potential. OPAL Fuels’ (NASDAQ:OPAL) ability to capitalize on these trends will support its long-term growth trajectory.

While RNG remains OPAL Fuels’ (NASDAQ:OPAL) primary business, the company also has exposure to the hydrogen fueling market and is involved in hydrogen fuel infrastructure development. This strategic diversification positions OPAL Fuels (NASDAQ:OPAL) to benefit from the growing interest in hydrogen as a green energy solution.

Industry analysts have a consensus on the stock’s Buy rating, setting an average share price target at $7.67, which represents a 74% upside potential from its current level. As of the second quarter, the stock is held by 14 hedge funds and the stakes amount to $21.54 million.