Hallador Energy’s plans for Sullivan County data center moving forward
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Terre Haute-based Hallador Energy Co. said in its most recent earnings report that it is making “meaningful progress” toward reaching an agreement for a new data center in Indiana.
The company has spent the last year looking for new development prospects for the Merom Generating Station in Sullivan County, which it acquired in 2022.
Last fall, Hallador said it signed a non-binding term sheet with “a leading global data center developer” and is now close to a definitive agreement on that effort, though specific details were not provided.
Hallador noted that there is an exclusivity period that runs from January to June of this year, during which the developer would pay up to $5 million. However, the company did not say definitively that any new data center would be located at the Merom station.
The company did not provide an estimated timeline for an agreement to be reached.
“While navigating these complex transactions requires coordination across multiple stakeholders and while there can be no assurance that definitive agreements will be entered into, we remain encouraged by our partner’s commitment and believe this strategic partnership will drive long-term value for our shareholders,” CEO Brent Bilsland said in a news release.
Meanwhile, Hallador said it is continuing in its effort to restructure its coal-based power generation subsidiary, Sunrise Coal. Last year, the company reduced coal production volume by 40%.
As a result, the company reported a full-year net loss of $226 million in 2024, compared to net income of $45 million the previous year. Hallador said the majority of the loss is due to the reduction in goal production.
However, the company said the effort to shift its revenue mix to prioritize electric sales is paying off. Electric sales in the fourth quarter totaled $69.7 million, up from $37.1 million during the same period in 2023.
“Looking ahead, our focus remains on maximizing the value of our Merom Power Plant while actively pursuing opportunities to acquire additional dispatchable generators that can add durability, scale, and geographic expansion to our electric operations,” Bilsland said.
Bilsland also noted that the company reduced its debt by 50% to $44 million in 2024.
You can view the full earnings report by clicking here.