HNRG News & Events

Hallador Energy Company announced that its subsidiary, Hallador Power Company, was selected by the U.S. Department of Energy's Hydrocarbons and Geothermal Energy Office to begin award negotiations for up to $27.2M, in potential federal funding to modernize the Merom Generating Station located in Merom, Indiana. Total project cost is estimated to be approximately $56.9M. The comprehensive modernization project is designed to upgrade MGS's water management systems to position the plant for future federal Effluent Limitation Guidelines requirements. This project will help modernize the delivery of reliable and flexible energy to MISO zone 6. "First and foremost, we'd like to thank President Donald J. Trump, the National Energy Dominance Council, and the DOE for progressing this initiative, and their understanding of the importance of dispatchable resources and their critical role in providing reliability to the power grid," said Brent Bilsland, Chairman and Chief Executive Officer. "Modernizing the Merom Generating Station will enhance the capabilities of our 1,080 MW rated facility for decades to come, helping power consumers, businesses, and infrastructural enhancements to the region."

Hallador Energy announced that it has entered into an asset purchase agreement, or APA, with Energy World to acquire approximately 460 MW of Siemens gas turbines, generators, a steam turbine, and ancillary equipment for a total purchase price of $350M, or approximately $760/kW. Hallador will also incur incremental costs for transportation, refurbishment, insurance, and logistics of approximately $100M in connection with the delivery of the equipment to Siemens USA and then on to its Merom site. The turbines have never been previously fired and are being acquired at what the company believes to be an attractive valuation to comparable new equipment alternatives, particularly given the current delivery windows for new turbines. The acquisition's delivered price of $450M represents more than half the estimated total project cost for Hallador's proposed Merom simple cycle natural gas-fired combustion turbine project, which is currently advancing through MISO's ERAS interconnection process.