Hallador Energy Company (HNRG) said on Monday it has agreed to purchase 460 megawatts of Siemens gas turbines, generators, a steam turbine, and ancillary equipment from Energy World Corporation for its Merom simple cycle natural gas-fired combustion turbine project.
The total purchase price of the acquisition is about $350 million or about $760/kilowatt, the company, an Indiana-based coal mining and power generation company, said in a statement.
Including the incremental costs for transportation, refurbishment, insurance, and logistics, the delivered price for the acquisition is around $450 million, which is over 50% of the Merom project's estimated total cost, the statement said.
The project is currently advancing the Midcontinent Independent System Operator's expedited resource addition study interconnection process, with revenue generation targeted for late 2028 to mid-2029, the statement said.
The company will continue to seek long-term power purchase agreements and a final investment decision is expected after the completion of the study in September.
Hallador retains the option to either fully develop the project, sell it with the equipment, or sell the equipment separately, with the decision subject to receipt and evaluation of MISO approvals, offtake agreements, financing, and other project development milestones, it added.