Hallador Energy said it has agreed to buy about 460 MW of Siemens gas turbines, generators, a steam turbine and related equipment for $350 million, or roughly $760 per kW, in a move that pushes its Merom natural gas generation project forward.
The company said it expects to spend another $100 million on transportation, refurbishment, insurance and logistics to get the equipment from Siemens facilities in the U.S. to its Merom site, bringing the delivered cost to about $450 million. Hallador said that total equals more than half of the estimated full project cost for the proposed simple-cycle gas plant.
The turbines have never been fired, and Hallador said the purchase secures long-lead equipment in a market where new turbine delivery windows remain extended. The company said the project could start generating revenue and cash flow between late 2028 and mid-2029 if it proceeds as planned.
Hallador said the acquisition is a key step in its four-part development path: equipment secured, MISO ERAS interconnection study imminent, continued marketing of output under long-term power purchase agreements, and a final investment decision after the study is completed, which it expects in September 2026.
On financing, Hallador said it had no outstanding bank debt as of March 31, 2026 and had a $120 million credit facility available. It also said its contracted sales book has grown to more than $2.1 billion in 2026, up sharply alongside a previously announced 12-year capacity agreement valued at more than $1 billion.
The company said it will continue to evaluate options for the project, including moving ahead with the full buildout, selling the project with the equipment, or selling the equipment separately. Today the company's shares have moved -0.62% to a price of $19.14. If you want to know more, read the company's complete 8-K report here.
