en.Wedoany.com Reported - Hallador Energy has signed an asset purchase agreement to acquire approximately 460 MW of Siemens gas turbines, generators, one steam turbine, and auxiliary equipment from Energy World Corporation for about $350 million, equivalent to roughly $760 per kilowatt.

The company will also spend an additional $100 million on transportation, refurbishment, insurance, and delivery of the equipment to Siemens USA, followed by transport to the Merom site.

The total delivery cost of $450 million accounts for more than half of Hallador's projected expenditure for the proposed Merom simple-cycle natural gas turbine project.

The project is advancing through the MISO Expedited Resource Addition Study (ERAS) interconnection process. Hallador expects to make a final investment decision on the Merom project after completing the MISO ERAS study (expected in September 2026) and obtaining necessary agreements and permits.

The project is planned to begin generating revenue between late 2028 and mid-2029, following turbine restoration.

This acquisition is significant in a market facing supply constraints and long lead times for new turbine deployment.

Brent Bilsland, Chairman and CEO of Hallador, stated that this is a major milestone for Hallador, as without equipment, there is no project. The company believes that locking in equipment at this stage significantly reduces development timeline risk and strengthens its position as it advances through the MISO expedited interconnection process.

Under the sales agreement, the gas turbines must be inspected and refurbished in the United States by the original equipment maintenance provider. Initial refurbishment cost estimates are based on borescope inspections conducted last year, but these costs may be adjusted after detailed inspections at designated facilities.

EWC will bear dismantling and export costs, funded by Hallador as part of the overall consideration. In addition to the purchase price, Hallador will cover transportation and import costs. Refurbishment expenses will be shared by both parties under agreed terms.

As of March 31, 2026, the company reported no outstanding bank debt and had access to a $120 million credit facility. Hallador's long-term capacity agreements, including a 12-year contract valued at over $1 billion, support its acquisition financing capability. Contract sales in 2026 are expected to exceed $2.1 billion.

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