Michigan's Palisades Nuclear Plant Set for Historic Restart with $1.5 Billion Federal Loan

DoE lends $1.5B to revive Michigan's Palisades nuclear plant

The Biden administration has announced plans to reignite a shuttered Michigan nuclear power plant with a $1.5 billion loan that, combined with other nuclear announcements yesterday, suggests the US federal government is right now all in on nuclear energy. The 800-megawatt Holtec Palisades plant, located on Michigan's southwest coast in a relatively low-populated area, shut down in 2022 due in part to cheaper energy prices caused by fossil fuels, it's said. Once the station is brought back online sometime in the fourth quarter of 2025, said the US Department of Energy (DoE), it'll be the first time a retired nuclear power plant in the country has been restarted. Licensing approval still needs to be granted following upgrades at the site, and power purchase agreements (PPAs) have already been signed to keep the plant running until 2051. Those PPAs aren't happening by accident, either: Along with the $1.5 billion loan to Holtec International to upgrade and restart Palisades, the US Department of Agriculture (USDA) announced yesterday it had awarded $1.3 billion in grants to the Wolverine Power Cooperative and Hoosier Energy, located in Michigan and Indiana, respectively, to fund the purchase of power generated by Palisades and other clean energy sources. Wolverine will purchase 435 MW of power from Palisades using $650 million in grants from the USDA's Empowering Rural America project, while Hoosier is purchasing 370 MW using a $675 million grant from the same source. In other words, not only is the atomic plant getting money to fire up again, organizations are getting handouts to buy the generated electricity and provide it to homes and businesses; this is supposed to also help create jobs and cut costs for folks. "We can continue supporting a more prosperous future for rural communities by accelerating the transition to clean energy, keeping monthly bills low for American families and investing in a strong rural workforce," Agriculture Secretary Tom Vilsack said of the funding. Nick Culp, senior manager of government affairs at Holtec Palisades, told The Register that most of the work needed to restart the plant isn't excessive - more like a standard refueling and maintenance process with some extra steps involved. "We knew Palisades was shutting down in advance, so we deferred a number of maintenance tasks," Culp said. "Now we're going back and completing that work." Culp said the latest project the team has been working on involves preparing the turbine deck to resume operations, as well as getting new employees trained up. When Palisades was in full operation, 600 people were employed, but after shutting down, it was reduced to 220 full-time employees. Culp said rehiring has begun, and a number of former Palisades employees are returning to their old jobs, too. Aside from that, there's not a lot of major overhauling to be done, Culp told us, because the first three years of post-shutdown operation were only supposed to involve removing fuel from the reactor - a task that still hasn't been completed. Luckily enough, some of the fuel in the reactor is still fresh, so it'll remain in place to kick-start the reactor back online next year. Nuclear power is America's largest source of [carbon-free electricity], supporting hundreds of thousands of direct and indirect jobs across the country Using nuclear fission, of course, Palisades will also help green up the Midcontinent Independent System Operator's grid by eliminating approximately 4.47 million metric tons of greenhouse gas annually, which will equate to the annual emissions of 882,000 homes when projected out over the 25 years the new Palisades project is planned to run. "Nuclear power is America's largest source of [carbon-free electricity], supporting hundreds of thousands of direct and indirect jobs across the country," said US Energy Secretary and former Michigan Governor Jennifer Granholm. "[Nuclear] will play a critical role in tackling the climate crisis and protecting public health and the environment from its impacts." Holtec said it intends to use Palisades' refiring as a foundational part of its plan to push for small modular reactors (SMRs) to be deployed in Michigan, starting with Palisades itself, where the plant owner intends to install two of its SMR-300 units by 2030. Holtec still has to get regulatory approval for its SMR design, which Culp told us the company is working on now, while also exploring plans to install more of them around Michigan. Devastating and well-publicized accidents in the 1970s and 1980s turned the world off from nuclear power for decades, but modern technology - not to mention the need for Earth to go on a greenhouse gas diet - has again made splitting the atom an attractive alternative to renewables and carbon-spewing fossil fuels in some quarters. It's reached the point in the climate change crisis where energy experts are warning nuclear energy will be necessary if the world intends to meet 2050 decarbonization goals - especially given the glut of energy consumption brought on by AI. The Dept of Energy knows this, which is part of the reason it released an updated version of its Pathways to Commercial Liftoff report for advanced nuclear energy yesterday alongside those other announcements. The document [PDF], which covers everything from what modern nuclear technology could do for the environment to ideas on how to implement it, points out that nuclear energy already provides around 20 percent of the United States' electricity generation, and nearly half of domestic carbon-free electricity. The DoE predicts the US will need at least 700 to 900 gigawatts of additional clean energy to meet its net-zero goals, and said it believes existing nuclear power plants in the nation have the potential to add an additional 60 to 95 GW with further funding. Shuttered and aging coal plant sites, if converted to nuclear, could add as much as 174 GW more, the DoE said. Holtec is exploring abandoned coal plants in Michigan as possible locations for its SMRs, Culp said. The report calls for the construction of modern reactors like SMRs that use low-pressure water or molten salt as a heat sink, making them safer than traditional nuclear reactors. However, some concerns remain about the waste such modern reactors produce, and how to acquire enough fuel. "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," Granholm said. ®

Michigan nuclear plant finalizes federal loan to support first reactor restart in U.S. history

The Palisades Nuclear Generating Station in Covert, Mich. John Madill | The Herald-Palladium | AP The Palisades nuclear plant in Michigan has closed a $1.5 billion loan to support the first reactor restart in U.S. history, the Department of Energy announced Monday. Palisades' owner, Holtec International, hopes to restart the plant in the fourth quarter of 2025, subject to approval by the U.S. Nuclear Regulatory Commission. Holtec is a privately held nuclear technology company headquartered in Jupiter, Florida. "All necessary funding has now been secured," said Nick Culp, a Holtec spokesperson. The company will use the funds for inspections, testing, restoration, rebuilding, replacement of equipment at the plant, according to the Department of Energy. Holtec has completed all major licensing submittals to the NRC, Culp said. Company executives expect to receive a response from the NRC sometime in 2025, he said. The restart of the reactor at Palisades would mark a milestone for the nuclear industry after a decadelong wave of reactor shutdowns in the U.S. Palisades ceased operations in 2022 as nuclear efforts struggled to compete with cheap and abundant natural gas. Demand for nuclear power is growing as the U.S. seeks carbon-free energy to meet rising electricity demand while meeting its climate goals. The planned restart at Palisades blazed a path for Constellation Energy's recent decision to bring Three Mile Island back online by 2028. "We've been using all of the tools in our tool belt to support the nuclear energy sector, keep reactors online, and to bring them back, and to finance advanced reactor deployment as well," David Turk, deputy secretary at the Department of Energy, told reporters on a call ahead of the announcement. Electricity demand is expected to increase about 15% over the next few years as artificial intelligence drives the need for data centers and domestic manufacturing continues expanding, Turk said. Microsoft has agreed to purchase power from Three Mile Island to help power its data centers. In the case of Palisades, the power is spoken for by Wolverine Power Cooperative, a nonprofit that provides electricity to rural communities in Michigan. Palisades will support 600 jobs in Covert Township near Lake Michigan and provide enough power for 800,000 homes, Turk said. Holtec plans to nearly double the capacity of Palisades in the 2030s by building new designs called small modular reactors at the site. These smaller reactors, which are prefabricated in several pieces, promise to speed deployment of nuclear by reducing costs and making plants simpler to operate.

Michigan nuclear plant finalizes federal loan to support first reactor restart in U.S. history

The Palisades nuclear power plant on the shore of Lake Michigan in 2017.Jim West / imageBROKER / Shutterstock The Palisades nuclear plant in Michigan has closed a $1.5 billion loan to support the first reactor restart in U.S. history, the Department of Energy announced Monday. Palisades' owner, Holtec International, hopes to restart the plant in the fourth quarter of 2025, subject to approval by the U.S. Nuclear Regulatory Commission. Holtec is a privately held nuclear technology company headquartered in Jupiter, Florida. "All necessary funding has now been secured," said Nick Culp, a Holtec spokesperson. The company will use the funds for inspections, testing, restoration, rebuilding, and replacement of equipment at the plant, according to the Department of Energy. Holtec has completed all major licensing submittals to the NRC, Culp said. Company executives expect to receive a response from the NRC sometime in 2025, he said. The restart of the reactor at Palisades would mark a milestone for the nuclear industry after a decadelong wave of reactor shutdowns in the U.S. Palisades ceased operations in 2022 after a period in which nuclear efforts struggled to compete with cheap and abundant natural gas. Demand for nuclear power is growing as the U.S. seeks carbon-free energy to meet rising electricity demand while meeting its climate goals. The planned restart at Palisades blazed a path for Constellation Energy's recent decision to bring Three Mile Island back online by 2028. "We've been using all of the tools in our tool belt to support the nuclear energy sector, keep reactors online, and to bring them back, and to finance advanced reactor deployment as well," David Turk, deputy secretary at the Department of Energy, told reporters on a call ahead of the announcement. Electricity demand is expected to increase about 15% over the next few years as artificial intelligence drives the need for data centers and domestic manufacturing continues expanding, Turk said. Microsoft has agreed to purchase power from Three Mile Island to help power its data centers. In the case of Palisades, the power is spoken for by Wolverine Power Cooperative, a nonprofit that provides electricity to rural communities in Michigan. Palisades will support 600 jobs in Covert Township, near Lake Michigan, and provide enough power for 800,000 homes, Turk said. Holtec plans to nearly double the capacity of Palisades in the 2030s by building new designs called small modular reactors at the site. These smaller reactors, which are prefabricated in several pieces, promise to speed deployment of nuclear power by reducing costs and making plants simpler to operate.

Michigan's Palisades Nuclear Plant To Restart After $1.5B Federal Loan, First In US History

The Palisades nuclear plant in Michigan has finalized a $1.5 billion federal loan to support the first reactor restart in U.S. history. What Happened: The plant, owned by Holtec International, aims to restart operations in the fourth quarter of 2025, pending approval from the U.S. Nuclear Regulatory Commission (NRC). Holtec, a nuclear technology firm based in Jupiter, Florida, has completed all major licensing submissions to the NRC, CNBC reported on Monday. The loan will be used for inspections, testing, restoration, and equipment replacement at the plant. The restart marks a significant milestone for the nuclear industry, following a decade of reactor shutdowns due to competition from affordable natural gas. The demand for nuclear power is increasing as the U.S. seeks carbon-free energy solutions to meet rising electricity needs and climate goals. See Also: Trump Vs. Harris: As Vice President Builds Lead In Michigan And Inches Ahead In Pennsylvania, Pollster Says 'Get-Out-The-Vote Strategies' Crucial In Highly Competitive Race Deputy Secretary of the Department of Energy, David Turk, emphasized the importance of nuclear energy in meeting future electricity demands, which are expected to rise by 15% in the coming years. The Palisades plant will support 600 jobs and provide power for 800,000 homes. Why It Matters: The Palisades plant's recommissioning is a pivotal event in the U.S. energy landscape. The plant, originally built in the late 1960s and operational since 1973, was acquired by Entergy Corp in 2006 and ran until its shutdown in 2022. The decision to restart the plant comes amid a renewed interest in nuclear energy, driven by the increasing energy demands of power-hungry technologies like artificial intelligence. This move aligns with the broader push for carbon-free energy sources. The recommissioning of Palisades is not just a technical achievement but also a strategic step towards meeting the U.S.'s climate goals and rising electricity needs. Read Next: British PM Dines With Trump, Skips Meeting With Kamala Harris Due To 'Usual Diary Challenges' Photo by metamorworks via Shutterstock This story was generated using Benzinga Neuro and edited by Pooja Rajkumari Market News and Data brought to you by Benzinga APIs

U.S. Approves Billions in Aid to Restart Michigan Nuclear Plant

The Energy Department said on Monday that it had finalized a $1.52 billion loan guarantee to help a company restart a shuttered nuclear plant in Michigan -- the latest sign of rising government support for nuclear power. Two rural electricity providers that planned to buy power from the reactor would also receive $1.3 billion in federal grants under a program approved by Congress to help rural communities tackle climate change. The moves will help Holtec International reopen the Palisades nuclear plant in Covert Township, Mich., which ceased operating in 2022. The company plans to inspect and refurbish the plant's reactor and seek regulatory approval to restart the plant by October 2025. After years of stagnation, America's nuclear industry is seeing a resurgence of interest. Both Congress and the Biden administration have offered billions of dollars in subsidies to prevent older nuclear plants from closing and to build new reactors. Despite concerns about high costs and hazardous waste, nuclear plants can generate electricity at all hours without emitting the greenhouse gases that are heating the planet. David Turk, the deputy secretary of energy, said he expected U.S. electricity demand would grow by 15 percent over the next few years, driven by an increase in electric vehicles, a boom in battery and solar factories as well as a surge of new data centers for artificial intelligence. That meant the nation needs new low-carbon sources of power that could run 24/7 and complement wind and solar plants. "It's been incredible to see nuclear power become part of that conversation in a way that just wasn't happening before," Mr. Turk said.

Another nuclear plant will come online as AI increases energy demands

The Department on Energy closed on a $1.52 billion loan to Holtec Palisades on Monday in a first-of-its-kind effort to fund the restoration of a nuclear power plant in Michigan. The historic loan funded by the Inflation Reduction Act's Energy Infrastructure Reinvestment project comes as increasing AI energy demands are sparking renewed interest in nuclear power. The Department of Energy said the effort will be "generating carbon pollution-free energy and saving and expanding a union workforce in Michigan while helping strengthen America's nuclear energy sector and advance core climate and domestic energy goals." Michigan Governor Gretchen Whitmer said in a statement that "Reopening Palisades will keep energy costs low, shore up domestic energy production, and secure Michigan's competitiveness for future economic development." The plant ceased operations in 2022, but will brought back online as early as 2025. The project will add about 600 jobs to the area. Holtec originally bought the plant with the plan to dismantle it, but changed course amid renewed interest in nuclear power. Microsoft (MSFT) recently announced that it needs so much energy to power AI it was turning to Three Mile Island, which will reopen its nuclear facilities by 2028. Three Mile Island was notably the site of the worst accident ever at a U.S. commercial nuclear power plant in 1979. The International Energy Association said in a report on electricity demand earlier this year that data centers will make up a third of new energy needs in the U.S. through 2026 and more than double worldwide by 2026 to 1,000 terawatt-hours. "This demand is roughly equivalent to the electricity consumption of Japan," the IEA said. "Updated regulations and technological improvements, including on efficiency, will be crucial to moderate the surge in energy consumption."

U.S. plans to revive reactors as AI powers nuclear renaissance

Why it matters: The data centers powering the AI revolution have an insatiable thirst for energy. Major stakeholders -- in Washington, Silicon Valley and beyond -- see nuclear energy as one of the answers. Driving the news: The Energy Department announced this morning it had finalized a $1.5 billion loan to stake the revival of the Holtec Palisades nuclear plant in Michigan. It'd be the first American nuclear plant to be restarted. The big picture: U.S. electricity use is soaring after staying flat for 15 years, driven by new factories, data centers, electric vehicles, hotter summers, and more. The intrigue: OpenAI pitched the White House this month on a plan to build multiple 5 gigawatt data centers -- each requiring the equivalent output of five nuclear plants -- across the U.S., Bloomberg reports. Zoom out: Nuclear's share of U.S. electricity has remained at roughly 20% or a little less for 30+ years. Zoom in: Several kinds of proposals are flying around. In addition to power giants reviving big existing plants, startups are trying to deploy new nuclear tech. Reality check: Past hopes for a "nuclear renaissance" have fizzled. Startups looking to build small modular reactors also face financial hurdles, driven home with the collapse of an Idaho project last year. What they're saying: Columbia University nuclear expert Matt Bowen tells Axios he's on the "verge of being optimistic" about new projects. What we're watching: Whether any utility giants announce plans for the first massive, gigawatt-scale reactors since the Vogtle project. The bottom line: It's the most hopeful moment for U.S. nuclear power in a very long time.