1. DOE loan office offers $1.52 billion loan guarantee to Holtec Palisades for restoration of Palisades Power Plant
2. Project aims to bring the single-reactor unit back into operation by the end of 2025, creating up to 600 jobs
3. Wolverine Power Cooperative has agreed to purchase up to two-thirds of the power generated by Palisades for Michigan-based rural electric cooperatives, supporting clean energy goals
The U.S. Department of Energy’s Loan Programs Office has announced a conditional commitment of up to $1.52 billion to Holtec Palisades LLC for the restoration and resumption of service of the Palisades Power Plant in Michigan. The plant aims to bring a single-reactor unit back into operation by the end of 2025, which would make it the first recommissioning of a shutdown nuclear power plant in the U.S. The project is supported by federal, state, and community partners and is expected to create or retain up to 600 jobs in Michigan.
The Palisades Power Plant has a long history dating back to the 1960s. After being shut down in 2022, the plant was transferred to Holtec International for decommissioning. However, Holtec’s application for financial support through the Civil Nuclear Credit Program has led to plans for the plant’s repowering and reopening, which has garnered support from Michigan’s governor and energy leaders.
Despite plans for plant upgrades and rehiring the workforce, detractors have expressed concerns about the safety of recommissioning the plant. On the other hand, supporters believe that the plant’s return to service is vital for meeting clean energy goals and providing reliable power to homes. The conditional commitment from the DOE is a step towards financing the project, pending technical and environmental requirements being met.