Reports related to this article:
Project(s): View 3 related projects in PECWeb
Plant(s): View 3 related plants in PECWeb
Released August 21, 2025 | SUGAR LAND
en
Researched by Industrial Info Resources (Sugar Land, Texas)--The U.S. power and gas sectors this week saw one the biggest deals in some time enter their merger and acquisition domain as Black Hills Energy (Rapid City, South Dakota) and NorthWestern Energy (Sioux Falls, South Dakota) announced their plans for an all-stock merger that will allow the companies to be better equipped for strengthening grid infrastructure and meeting rapidly growing power demand.
Earlier this week, the boards of both companies unanimously approved the merger, creating a $15.4 billion power and gas utility that will serve 2.1 million customers across eight states (Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming). According to a press release regarding the merger, the combined company will have 38,000 miles of electric lines, 59,000 miles of natural gas pipelines, and approximately 2.9 gigawatts of thermal, hydro and wind resources.
Under the agreement, NorthWestern shareholders will receive 0.98 Black Hills shares for each of their own, ultimately holding about 44% of the company compared with Black Hills' 56%. NorthWestern Chief Executive Officer (CEO) Brian Bird will lead the new company, while current Black Hills CEO Linn Evans will retire upon the completion of the transaction. The merged company will feature a new name and ticker symbol and will have its headquarters in Rapid City.
A press release from the companies regarding the merger noted that together they had more than $7 billion in investments planned from 2025 to 2029 "to meet rising energy demand and advancing energy resilience in the regions where the combined company operates," noting that "this level of investment is expected to increase following the combination" and specifically pointing to increasing power demand from data centers as a priority to be addressed.
Industrial Info is tracking more than $580 million worth of active projects between the companies involving power generation, gas pipelines, coal ash pond closures and equipment improvements. On the power-generation front, both companies plan to add natural gas-fired capacity in South Dakota. Black Hills this month began the addition of three 16-megawatt (MW) natural gas-fired reciprocating internal combustion engines (RICE) and three 17-MW RICE capable of burning both natural gas and diesel fuel at its new Lange 2 power station in Rapid City. Together, the units will provide 99 MW of rapidly available power to customers in South Dakota and northeast Wyoming. The facility is expected to be operational by the end of next year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
NorthWestern also plans to add new gas-fired capacity for use in high-demand periods at its power plant in Aberdeen, South Dakota. The new simple-cycle units will bring 92 MW of easily dispatchable power to the area when needed. Work at the facility is expected to kick off next summer and be completed by the fall of the 2027. Subscribers can learn more by viewing the project report.
While the new company's electric customers will total about 700,000 people, its natural gas utility will serve 1.4 million customers, and to this end, NorthWestern earlier this year submitted an application to the U.S. Bureau of Land Management (BLM) to construct a 74-mile, 16-inch-diameter gas pipeline in Montana. The pipeline would begin in East Helena, traversing various locales until arriving at Three Forks in Gallatin County. The route includes approximately seven miles of BLM-managed public land and would follow an existing utility corridor to minimize ground disturbance. The project remains some ways off, with Industrial Info expecting it to kick off in the summer of 2028, although as the current U.S. presidential administration is very encouraging of new pipeline construction, particularly on public lands, permitting for the project could perhaps be easier and take less time than anticipated. Subscribers to Industrial Info's GMI Pipelines Project Database can click here for more details on the project.
The Black Hills-NorthWestern merger is expected to be completed by the fourth quarter of 2026.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
Earlier this week, the boards of both companies unanimously approved the merger, creating a $15.4 billion power and gas utility that will serve 2.1 million customers across eight states (Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming). According to a press release regarding the merger, the combined company will have 38,000 miles of electric lines, 59,000 miles of natural gas pipelines, and approximately 2.9 gigawatts of thermal, hydro and wind resources.
Under the agreement, NorthWestern shareholders will receive 0.98 Black Hills shares for each of their own, ultimately holding about 44% of the company compared with Black Hills' 56%. NorthWestern Chief Executive Officer (CEO) Brian Bird will lead the new company, while current Black Hills CEO Linn Evans will retire upon the completion of the transaction. The merged company will feature a new name and ticker symbol and will have its headquarters in Rapid City.
A press release from the companies regarding the merger noted that together they had more than $7 billion in investments planned from 2025 to 2029 "to meet rising energy demand and advancing energy resilience in the regions where the combined company operates," noting that "this level of investment is expected to increase following the combination" and specifically pointing to increasing power demand from data centers as a priority to be addressed.
Industrial Info is tracking more than $580 million worth of active projects between the companies involving power generation, gas pipelines, coal ash pond closures and equipment improvements. On the power-generation front, both companies plan to add natural gas-fired capacity in South Dakota. Black Hills this month began the addition of three 16-megawatt (MW) natural gas-fired reciprocating internal combustion engines (RICE) and three 17-MW RICE capable of burning both natural gas and diesel fuel at its new Lange 2 power station in Rapid City. Together, the units will provide 99 MW of rapidly available power to customers in South Dakota and northeast Wyoming. The facility is expected to be operational by the end of next year. Subscribers to Industrial Info's Global Market Intelligence (GMI) Project Database can learn more by viewing the project report.
NorthWestern also plans to add new gas-fired capacity for use in high-demand periods at its power plant in Aberdeen, South Dakota. The new simple-cycle units will bring 92 MW of easily dispatchable power to the area when needed. Work at the facility is expected to kick off next summer and be completed by the fall of the 2027. Subscribers can learn more by viewing the project report.
While the new company's electric customers will total about 700,000 people, its natural gas utility will serve 1.4 million customers, and to this end, NorthWestern earlier this year submitted an application to the U.S. Bureau of Land Management (BLM) to construct a 74-mile, 16-inch-diameter gas pipeline in Montana. The pipeline would begin in East Helena, traversing various locales until arriving at Three Forks in Gallatin County. The route includes approximately seven miles of BLM-managed public land and would follow an existing utility corridor to minimize ground disturbance. The project remains some ways off, with Industrial Info expecting it to kick off in the summer of 2028, although as the current U.S. presidential administration is very encouraging of new pipeline construction, particularly on public lands, permitting for the project could perhaps be easier and take less time than anticipated. Subscribers to Industrial Info's GMI Pipelines Project Database can click here for more details on the project.
The Black Hills-NorthWestern merger is expected to be completed by the fourth quarter of 2026.
Subscribers to Industrial Info's GMI Database can click here to view reports for all of the projects discussed in this article and click here for the related plant profiles.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking over 200,000 current and future projects worth $17.8 trillion (USD).
