What You Need to Know About the $800M Small Nuclear Reactors Project at Palisades Nuclear Plant

The Palisades Small Modular Reactor Project is a nuclear energy development planned at the Palisades Nuclear Plant in southwest Michigan. The U.S. Department of Energy has indicated it will provide up to US$800 million in federal cost-shared funding to Holtec Government Services LLC and the Tennessee Valley Authority to support the development of two small nuclear reactors at the site. The project involves the deployment of small modular reactors, which are designed as smaller-scale nuclear facilities constructed using modular components that can be manufactured, assembled, and transported more efficiently than conventional nuclear plants.

Last year, the DOE said it was supporting seven advanced reactor designs. Though this includes Holtec’s, none are operating in the US. The company intends to deploy two SMR-300 reactors at the Palisades plant in Covert Township along Lake Michigan. It was potentially building a model that it can use to supply orders. Small modular reactor projects are still taking shape such as the SMR fuel plant in Tennessee which is expected to be the first facility in the USA to exclusively manufacture fuel for advanced small modular reactors. Tennessee is also at the center of another DOE award for SMRs deployment at the Clinch River nuclear plant.

SMR projects such as the Palisades Nuclear plant SMR are expected to be revolutionary as new startups such as Last Energy seek to be involved. The company has secured $100 million in Series C to fund its small nuclear reactor project in Texas. The move comes at a time when demand for power to run artificial intelligence systems drives renewed interest in nuclear energy. The company’s funding round was led by Astera Institute and included participation from Galaxy Interactive.

It also involved Gigafund and Woori Technology. Last is developing a 20 MW micro reactor and aims to reduce production costs by incorporating off-the-shelf parts. These parts will be integrated into the common components. The company is part of a growing segment of businesses designing next-generation nuclear systems to address increasing electricity consumption.

The Scope on the Palisades Nuclear Plant SMR Project

The scope on the Palisades nuclear plant SMR project is one that is fully supported by the Department of Energy. The department is supporting the following first-mover teams to develop and construct the first Gen III+ small modular reactor (Gen III+ SMR) plants in the United States.

The Tennessee Valley Authority plans to advance deployment of a GE Vernova Hitachi BWRX-300 at the Clinch River Nuclear site in Tennessee. Furthermore, it will accelerate the deployment of additional units with Indiana Michigan Power and Elementl. Additionally, TVA plans to work with various domestic nuclear supply chain partners. These include Scot Forge, North American Forgemasters, BWX Technologies, and Aecon. Other partners supporting the project include Duke Energy, Oak Ridge Associated Universities, and the Electric Power Research Institute.

On the other hand, Holtec plans to deploy two SMR-300 reactors at the Palisades Nuclear Generating Station site in Covert, Michigan. It demonstrates viability for additional orders both domestically and abroad. Holtec aims to pursue an innovative one-stop-shop approach to SMR deployment by fulfilling the roles of technology vendor, supply chain vendor and nuclear plant constructor. The company is working in partnership with Hyundai Engineering & Construction, plant operator, and electricity merchant selling the power to near-by utilities and end-users.

Securing America’s Energy Through SMR Projects

The DOE has noted that the commitment to prepare for continued growth in electricity demand. In a statement, the department noted that President Trump has charged them with adding new, affordable and reliable energy to keep America energy secure. The country is turning to small modular reactors as an affordable, flexible, proven technology and the ability to leverage existing supply chains. This makes them one of the fastest and most scalable pathways to new nuclear capacity. In March 2025, DOE issued a $900 million solicitation to de-risk the deployment of Gen III+ SMRs. The remaining $100 million will be awarded later this year to support additional deployments and address key barriers in design, licensing, supply chain, and site readiness.

Palisades Nuclear Plant SMR Project Factsheet

Significance:

• Department of energy to give up to 400M to Holtec in two small modular reactors (SMRs).
• One of a national initiative to increase grid capacity using next-generation nuclear.

Key Features:

• Palisades Nuclear Plant site, Covert Township, Michigan Two SMR-300 units are intended to be built on the site.
• Reactor technology based on modular, factory-assembled reactors with a goal to rapid and inexpensive deployment.

DOE “First-Mover” Program:

• The DOE funds Gen III+ SMR pre-deployments.
• The chosen developers include Holtec and TVA.

Project Scope:

• Holtec: Implement 2 SMR-300 reactors; one-stop system, with seller, supply chain and contractor, as tech vendor.
• Some of its partners are Hyundai E&C and regional utilities.
• Demonstration aimed at serving extended domestic and international arrangements.
• TVA: Progressing GE Hitachi BWRX-300 at Clinch River, Tennessee.
• Cooperation with Indiana Michigan Power, Elementl and the U.S. nuclear supply chain companies.

Energy Security Context:

• SMRs as scalable and flexible nuclear reactors to satisfy increasing U.S. electricity demand.
• A component of DOE broader initiative of de-risking Gen III + deployment of SMRs (900M)