COVERT, Mich — The Palisades nuclear power plant in Covert Township is set to receive up to $1.52 billion in federal funding to restore and restart the shuttered facility.
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.
In January, a spokesperson for Holtec International told 13 ON YOUR SIDE that the company had applied for the loan to restart the plant.
Two months later, the U.S. Department of Energy (DOE) extended the offer of a conditional commitment of up to $1.52 billion for a loan to Holtec Palisades to finance its restoration and return to service.
The project will upgrade the 800-MW electric nuclear generating station and put it in service creating power for the region until at least 2051. The loan offer must still be finalized before the project can begin.
“Nuclear power is our single largest source of carbon free electricity, directly supporting 100,000 jobs across the country and hundreds of thousands more indirectly,” said U.S. Secretary of Energy Jennifer M. Granholm. “President Biden’s Investing in America agenda is supporting and expanding this vibrant clean energy workforce here in Michigan with significant funding for the Holtec Palisades nuclear power plant."
Michigan Gov. Gretchen Whitmer said the Palisades plant will protect 600 "good-paying" jobs here in the state and provide power to 800,000 homes.
“Once open, Palisades will be the first successfully restarted nuclear power plant in American history, driving $363 million of regional economic impact and helping Michigan lead the future of clean energy. I am so grateful to my bipartisan partners in the Michigan Legislature, the Biden-Harris Administration, Holtec, and labor for coming together to get this done. Together, we are showing the world that Michigan is a place where history is made by hardworking people," added Whitmer.
The funding to reopen the Palisades nuclear plant is part of President Biden's "Investing in America" agenda, which aims "to support good-paying, high-quality job opportunities in communities across the country while also expanding access to affordable clean energy resources."
If the loan is finalized, 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 is 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.
Shortly after the announcement was made, Michigan lawmakers are praising the funding offer:
“Today’s announcement is a massive step towards restoring 800 megawatts of carbon-free energy generation and hundreds of highly skilled jobs right here in Michigan’s Fourth Congressional District. Holtec’s historic repowering of the Palisades Nuclear Power Plant will provide safe, reliable energy to meet Southwest Michigan’s growing needs, and it lays the groundwork for the first-of-their-kind small modular reactors to be placed at Palisades in the future. For these reasons, I’m proud to have led the bipartisan congressional effort on behalf of this project to lower energy costs, create jobs, and strengthen American energy security,” said Congressman Bill Huizenga.
“Palisades coming back online is a big win for southwest Michigan as it means more jobs and more reliable, affordable power for the people of this state. With the dark shadow of Gov. Whitmer’s California-style Green New Deal signaling higher costs and a less reliable energy grid for our state’s future, Michigan families need dependable power sources like Palisades to help alleviate energy prices and provide electricity when the sun doesn’t shine and the wind doesn’t blow. I am happy to see the governor and her peers acknowledging the need to reopen this vital nuclear power plant as we all brace for the predictable shortfalls of the extreme energy agenda forced through the Legislature by the Democrat majority last year," said Michigan State Senate Republican Leader Aric Nesbitt.
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