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 an estimated total cost of about $56.9 million, meaning the potential federal share would cover roughly 48% of the project budget.
The company said the modernization effort would focus on water management systems at the plant’s two units, with the goal of preparing the site for future effluent limitation guideline requirements and moving toward zero liquid discharge. Hallador said the work is intended to reduce environmental impact while keeping the plant positioned to deliver reliable power to MISO Zone 6.
Merom is a 1,080-megawatt rated facility. Hallador said the upgrade is expected to support that capacity for decades and improve the plant’s ability to provide flexible energy.
The company said it does not expect the DOE funding, if received, to have a material effect on 2026 financial results. The market has reacted to these announcements by moving the company's shares -12.08% to a price of $16.66. If you want to know more, read the company's complete 8-K report here.
