Hallador Energy Seeks $27.2M DOE Funding for $56.9M Merom Plant Upgrade
HNRG•Hallador Energy subsidiary to begin DOE negotiations for up to $27.2M in funding for $56.9M Merom plant modernization. Upgrades to water management aim to extend 1,080MW coal plant life and ensure compliance with environmental regs, though no material 2026 results impact is expected.
1. DOE Negotiations Begin
Hallador Power Company has been selected to negotiate with the U.S. Department of Energy for up to $27.2 million in potential funding to modernize the Merom Generating Station. Negotiations mark the first step toward securing a grant that could cover nearly half of the project's estimated $56.9 million cost.
2. Project Scope and Cost
The modernization will focus on upgrading water management systems at Merom Units 1 and 2 to treat and recycle process water more efficiently and eliminate liquid discharge, aligning the plant with future federal environmental requirements.
3. Plant Details and Regional Role
Merom is a 1,080-megawatt coal-fired facility supplying electricity across Indiana, Illinois, Kentucky and other parts of the MISO grid; upgrades aim to extend its operational life and enhance its dispatchable power capacity.
4. Financial Impact and Risks
Management does not expect any material impact on 2026 financial results from the potential DOE funding and cautions that final award is not guaranteed, reflecting a consideration of both upside and risk.
