Hallador Energy has signed an asset purchase agreement (APA) to acquire around 460MW of Siemens gas turbines, generators, a steam turbine and ancillary equipment from Energy World Corporation (EWC) for $350m, around $760/kW.
The company will spend an additional $100m on transporting, refurbishing, insuring and delivering the equipment to Siemens USA and subsequently to the Merom site.
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The total delivered cost of $450m constitutes more than half of the projected expenses for Hallador’s proposed Merom simple cycle, natural gas-fired combustion turbine project.
This project is advancing through the MISO Expedited Resource Addition Study (ERAS) interconnection process.
Hallador expects to make a final investment decision (FID) on the Merom project after completing the MISO ERAS study, anticipated in September 2026, and upon receiving necessary agreements and clearances.
The project is scheduled to begin generating revenue between late 2028 and mid-2029, following restoration of the turbines.
The acquisition is significant in a market facing supply constraints and lengthy lead times for deploying new turbines.
Hallador chairman and CEO Brent Bilsland said: “This is an important advancement for Hallador. Until you have equipment, you don’t have a project. We now have Siemens equipment, at what we believe is the right price, at the right time, and in a supply environment where availability has become increasingly limited.
“We are not waiting for turbines to be built; this equipment already exists. We believe securing equipment at this stage meaningfully reduces development timing risk and strengthens our positioning as we advance through the MISO expedited interconnection process.”
According to the sale agreement, the gas turbines must be inspected and refurbished in the US by an original equipment maintenance provider.
The initial refurbishment cost estimate was based on a borescope inspection conducted last year, but these costs may be revised after a detailed inspection at the designated facilities.
EWC will cover dismantling and export costs, with funding provided by Hallador as part of the overall consideration.
In addition to the purchase price, Hallador will cover transportation and import costs.
Refurbishment costs will be shared by both parties under the agreed terms. Hallador also said it expects to finance the transaction in line with the APA.
As of 31 March 2026, the company reported no outstanding bank debt and access to a $120m credit facility.
Hallador’s long-term capacity agreements, including a 12-year contract worth more than $1bn, support its ability to fund the acquisition. Contracted sales are expected to exceed $2.1bn in 2026.
