The U.S. Department of Energy will provide Holtec and the Tennessee Valley Authority up to $800 million to develop two small nuclear reactors (SMR) at Palisades Nuclear Plant. The project is located in southwest Michigan as part of an effort to rapidly expand the U.S. electricity grid using nuclear energy. The department said it will give Holtec Government Services LLC and Tennessee Valley Authority (TVA) each in federal cost-shared funding to build the reactors. Small modular reactors are essentially small-scale nuclear plants that are easier to build. Furthermore, they are made with modular parts that can be mass-assembled and easily transported.
The technology is still in development. 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.
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)
