Hallador Energy said its subsidiary, Hallador Power, has been selected by the U.S. Department of Energy to begin award negotiations for up to $27.2 million in federal funding to modernize the Merom Generating Station in Merom, Indiana.
The proposed project carries a total estimated cost of $56.9 million, meaning the federal award under discussion would cover about 48% of the project.
The modernization plan focuses on the plant’s water management systems at the company’s 1,080-megawatt rated facility. Hallador said the work is intended to prepare the plant for future federal effluent limitation guidelines and to move the station toward zero liquid discharge.
The company said the project would upgrade Merom units 1 and 2 to reduce environmental impact while supporting the plant’s role in MISO Zone 6.
Hallador framed the project as one that could protect local water resources, support regional energy reliability, and boost local economic activity through domestic sourcing and contractors. It also said the work could help local tax bases that fund schools, infrastructure, and public services.
Despite the size of the potential award, Hallador said it does not expect the DOE funding to have a material effect on its 2026 financial results. As a result of these announcements, the company's shares have moved -12.08% on the market, and are now trading at a price of $16.66. If you want to know more, read the company's complete 8-K report here.
