COVERT, Mich. — A previously shuttered nuclear power plant in Michigan will make history after receiving a $1.52 billion loan from the federal government.
The Holtec Palisades 800-megawatt nuclear power plant will be restarting its reactor as part of President Biden's Investing in America agenda.
When the reactor is restarted, it will be the first nuclear reactor in the United States to restart after its fuel has been removed.
“Nuclear power is America’s largest source of carbon-free of electricity, supporting hundreds of thousands of direct and indirect jobs across the country and will play a critical role in tackling the climate crisis and protecting public health and the environment from its impacts,” said U.S. Secretary of Energy Jennifer M. Granholm. “Under President Biden and Vice President Harris’ leadership, DOE and our partners across the federal government are working around the clock to ensure this vital source of clean electricity—and the vibrant workforce it supports— continues to power our nation for generations to come.”
Palisades ceased operations in May 2022 by its New Orleans-based owner, Entergy Corp., and was later sold to Holtec International in June 2022.
Now, Holtec International is set to receive the $1.52 billion loan to fund the reactor restart, which will still need U.S. Nuclear Regulatory Commission (NRC) licensing approvals.
Once licensed, the plant will be cleared to produce baseload power until at least 2051.
On Monday, Sept. 30, U.S. Deputy Secretary of Energy David M. Turk, USDA Deputy Secretary Xochitl Torres Small and White House National Climate Advisor Ali Zaidi will join local, state and labor leaders for a tour of Holtec Palisades Training Center.
“From Day One, President Biden and Vice President Harris have taken historic steps to keep existing nuclear plants from shutting down, restart previously shuttered nuclear plants, and bring new reactors online. The results are visible across the country – more clean power and more union jobs. It’s a powerful clean energy comeback story that represents a chance to build our manufacturing capacity and rebuild our middle class. Today’s announcement – which will catalyze the first recommissioning of a nuclear power plant in U.S. history – create hundreds of long-term union jobs, support workforce development, and feed our nation’s energy demand while reducing emissions,” said White House National Climate Advisor Ali Zaidi.
The project is expected to support more than 1,000 jobs during the facility's regularly scheduled refueling and malignance periods every 18 months. This is in addition to the 600 year-round jobs at Palisades.
When the project is completed and the facility is back online, it is anticipated to avoid 4.47 million tons of CO2 emissions per year.
The funding offer was the first to be offered through the Energy Infrastructure Reinvestment program, authorized by Biden's Inflation Reduction Act.
In addition to restarting the facility, Holtec plans on adding two modular reactors to Palisades in the future, which could generate an additional 800-MW of power. The modular reactors are not part of the project funded by the DOE.
The $1.52 billion loan was part of $2.8 billion that went to Midwest power plants. Two rural electric cooperatives––Wolverine Power Cooperative and Hoosier Energy—received a combined $1.3 billion in loans to "reduce the cost of electricity passed on to their members for clean power from Holtec Palisades and other clean energy sources."
