Hallador Signs $711 Million Power Deal With Indiana Utility

(Bloomberg) -- Hallador Energy Co., a US coal miner and power producer, agreed to sell electricity to an Indiana utility, spurred by surging demand from data centers in the state.

The six-year deal with the unidentified customer will provide about $711 million in revenue starting in mid-2029, Hallador said in a Thursday statement. The agreement includes both energy deliveries from its Merom power plant and a capacity agreement, with the total contract providing an average price above $80 a megawatt-hour.

That's the highest price the Indiana-based company has ever secured, and is more than double the $35-a-megawatt-hour historical average from Merom over 15 years. The price reflects rising demand for electricity, driven by the voracious appetite of power-hungry data centers, according to Chief Executive Officer Brent Bilsland.

"These data centers coming to the state of Indiana are just game-changing," he said in an interview. "Demand is clearly outstripping supply."

Hallador's shares rose as much as 9.8% before the start of regular trading in New York.