Terre Haute-based Hallador Energy Co. will develop solar generation of up to 1,000 megawatts near the Merom Coal Generation Station in Sullivan in an agreement with Hoosier Energy Rural Electric Cooperative Inc. Hoosier Energy, which expects to retire the coal-fueled power plant in May 2023, will enter into a power purchase agreement for 200 megawatts of solar and battery storage from Hallador Energy, said Curt Durnil, spokesman for Hoosier Energy.

Hallador will seek other customers through purchase agreements to allow development of the remaining 800 megawatts generation capacity at the Merom electrical interconnection site.

“Expanding Hallador’s portfolio to include renewable energy is the natural next step in the company’s evolution, “ Brent Bilsland, Hallador president and CEO, said in a statement.

“With today’s heightened focus on decarbonization, utilities are constantly evaluating the makeup of their generation. Thus, during these times of rapid change we are seeing coal plant retirement dates being both accelerated, for environmental reasons, and delayed, over grid stability concerns,” Bilsland said.

Sunrise Coal, LLC., Hallador’s primary business unit, has the capacity to produce 10 million tons of coal annually and has customers in the Midwest and southeastern United States.

“Hallador is now uniquely situated to support our customers through coal supply to existing plants while also offering a platform to help customers transition to solar and batteries at the time of their choosing. This flexibility we can now offer is good for our customers, employees, and our shareholders,” Bilsland said.

Donna Walker, president and CEO of Bloomington-based Hoosier Energy said the company is “excited for the opportunity to work with Hallador Energy and open a path for them to develop renewable energy near the Merom Station. While it may seem surprising for a coal producer to assist with a renewable transition, Hallador has been helping serve the needs of Hoosier Energy for 17 years. Not only will this conversion assist both companies in transitions to a greener future, but it will also benefit our members and their member-consumers as well,” Walker said in a statement.

Hoosier Energy is a power generation and transmission cooperative, providing electric power to 18 electric distribution cooperatives in central and southern Indiana and southeastern Illinois that serve nearly 710,000 customers.
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