Opal Fuels said on Thursday it agreed to go public by merging with blank-check firm ArcLight Clean Transition Corp II (ACTD.O) in a deal that values the renewable energy production and distribution company at $1.75 billion, including debt. The deal includes a $125 million fully committed private placement in public equity (PIPE) at $10 per share, anchored by Nextera Energy Inc (NEE.N), Electron Capital Partners, Gunvor Group, Wellington Management and ArcLight affiliates. Producers of alternative sources of energy have lately seen an uptick in demand as businesses and investors push for more sustainable and cleaner energy resources. Archaea Energy (LFG.N) shares surged in its New York Exchange debut in September after it went public through a merger with a blank-check firm in a $1.15 billion deal. The combined company will be led by Opal co-chief executives Adam Comora and Jonathan Maurer and trade on Nasdaq under the symbol "OPL". Special purpose acquisition companies, or SPACs, are shell companies which raise funds through an initial public offering to take a private company public through a merger at a later date. Reporting by Mehnaz Yasmin and Sohini Podder in Bengaluru; Editing by Sriraj Kalluvila