COVERT, Mich. — A nuclear power plant in Southwest Michigan is rumored to receive a $1.5 billion loan to restart the shuttered facility in the coming years.
The Palisades Nuclear Plant was closed in May 2022 by its New Orleans-based owner, Entergy Corp., and was later sold to Holtec International in June 2022.
Now, the power plant is expecting to receive a $1.5 billion loan from the Biden administration with backing from the U.S. Department of Energy (DOE).
"We have been impressed with the Department’s loan application process, which has entailed rigorous due diligence with Department staff and expert third-party advisors. We are very optimistic about the federal loan process and confident in the strength of our application," said Nick Culp, a spokesperson for Holtec International.
In April of 2022, the Biden administration on Tuesday launched a $6 billion effort to rescue nuclear power plants at risk of closing, citing the need to continue nuclear energy as a carbon-free source of power that helps to combat climate change.
Michigan Governor Gretchen Whitmer urged Entergy Corp. to apply for the credits to keep the plant open before it was shut down and sold, but Entergy Corp. went through with the shutdown and sale anyway.
Holtec International had purchased the plant with the intention of bringing it back online, which now looks likely in the coming years.
"We hope for a timely approval of our loan application to bring the plant back to full power operation toward the end of 2025. We will not speculate on anticipated timing but are hopeful to hear a favorable decision in the near future," added Culp.
The Palisades Nuclear Plant was commissioned on Dec. 29, 1971 and has produced over 7,000 gigawatts of annual energy with its single reactor.
"The historic repowering of Palisades has been buoyed by strong support from our federal, state, and community partners who recognize its importance to our clean energy future. The unified effort to bring Palisades back online will return 800 megawatts of safe, reliable, and carbon-free baseload generation back to our electric grid – ensuring Michigan and the country meet climate goals while boosting around-the-clock reliability for families and businesses," said Culp.
The initial report of the loan offer was published by Bloomberg. 13 ON YOUR SIDE reached out to the DOE to confirm the loan and they said that the report is "mere speculation" and that the DOE has not confirmed any loan offer.
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