Black Hills Energy powers ahead with Pueblo battery storage project

Black Hills Energy powers ahead with Pueblo battery storage project

New energy storage facility will support reliable service, renewable energy integration, and emissions reduction goals

PUEBLO, Colo., September 4, 2026 – Black Hills Energy is moving forward with construction of a new 50-megawatt (MW) battery storage facility at its Pueblo Airport Generating Station (PAGS), marking the next step in the company’s clean energy journey to reduce greenhouse gas emissions by 80% by 2030, as required by the state of Colorado.

The battery storage facility, the Pueblo Battery Resource, was approved by the Colorado Public Utilities Commission in 2025, as part of the company’s 2022 Clean Energy Plan filing.  Every four years, Black Hills Energy conducts a comprehensive planning process to forecast the electric resource requirements necessary to provide customers with the safe, reliable and cost-effective energy they depend on while also achieving the state of Colorado’s emission reduction requirements. The company is preparing to file its 2026 Clean Energy Plan early this fall.

“We’re very proud that our company’s first large-scale battery storage project will be built right here in Pueblo,” said Campbell Hawkins, vice president of Colorado Utilities at Black Hills Energy. “This project gives us another tool to maintain the safe, reliable service our customers depend on while integrating additional energy resources into our system.”

With 50 MW of battery storage capacity, the four-hour battery storage system will be charged with excess renewable energy provided by other Black Hills Energy renewable resource generation. Each day the cost-effective resource will be charged and available to serve 200 megawatt-hours of customer peak demand. The Pueblo Battery Resource is expected to begin supplying power to Southern Colorado customers in late 2027 and is estimated to deliver approximately $30.1 million in economic benefit through the construction, operation and maintenance of the facility.

The company recently issued a notice to proceed with the 50 MW Pueblo Battery Resource. Project partners include Linxon, a global engineering, procurement and construction company, and Cloudbreak Energy, a national developer and IPP of distributed resources and utility-scale solar and storage projects. In addition to developing the project, Cloudbreak Energy will also oversee the construction of the storage system, while Linxon will deliver the balance-of-plant infrastructure needed to support the deployment of 50 Tesla Megapack batteries, including associated electrical and civil engineering work.

For more information on Black Hills Energy in Southern Colorado, visit www.blackhillsenergy.com/powering-colorado.

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About Black Hills Energy

Black Hills Corp. (NYSE: BKH) is a customer-focused, growth-oriented utility company with a tradition of improving life with energy and a vision to be the energy partner of choice. Based in Rapid City, South Dakota, the company serves 1.37 million natural gas and electric utility customers in eight states: Arkansas, Colorado, Iowa, Kansas, Montana, Nebraska, South Dakota and Wyoming. More information is available at www.blackhillscorp.com and www.blackhillsenergy.com.

About Cloudbreak Energy

Cloudbreak Energy Partners is a national developer and IPP of distributed, community, and utility-scale solar and storage projects, with a development portfolio of more than 750 MW across the East Coast, Midwest, West Coast, and Colorado. Founded by a team of renewable energy professionals, Cloudbreak is focused on accelerating the renewable energy economy by building lasting relationships with landowners, utilities, and communities, and by applying project finance expertise and proprietary technology to deliver high-probability project outcomes at scale. Cloudbreak is based in Boulder, Colorado. More information is available at www.cloudbreakenergy.com.