While announcing its Q1 2026 financial and operating results, Hallador Energy Co. detailed a newly signed 12-year capacity agreement to sell a substantial portion of its accredited capacity to a subsidiary of a utility for planning years 2028 through 2040. The agreement initially covers a smaller volume of accredited capacity in 2028, increasing to approximately 2/3rds of the company’s accredited capacity beginning in 2029 through 2040. The structure is capacity-only and does not include the sale of energy, allowing the company to retain flexibility to optimize future energy sales.

“In the last few months, we have made significant progress advancing our long-term contracting strategy, together with the three-year capacity agreement we announced in March for planning years 2026, 2027 and 2028, culminating now with the execution of a 12-year capacity agreement selling approximately 2/3rds of our accredited capacity starting in late 2028 through mid-2040,” said Brent Bilsland, president and CEO. “Together, these two capacity-only sales total approximately $1.1 billion, nearly doubling our forward sales book and making the company substantially sold-forward on accredited capacity across the next fourteen consecutive years.

The company said that the two agreements will enable it to focus on disciplined capital allocation across potential growth initiatives, such as the proposed 515 MW gas plant project and dual-fuel ambitions for the existing 1-GW Merom power plant.

The 12-year capacity agreement is subject to customary regulatory approvals anticipated to be received in the second half of 2026.