The US Department of Energy has announced that it has approved a US$57 million loan disbursement to Holtec for the Palisades Nuclear Plant. The loan is part of an up to US$1.52 billion loan guarantee to Holtec for the nuclear project. Once completed, the plant will provide 800 MW of affordable, reliable baseload power in Michigan. Moreover, it will be the first restart of a commercial nuclear reactor that ceased operations in the United States. It is projected to create and retain up to 600 high-quality jobs in Michigan. Most of the opportunities will be filled by workers who had previously been at the plant for over two decades.
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History on the Palisades Nuclear Plant
The Palisades Nuclear Plant was shut down in 2022 after the plant had been running for over 50 years. What led to the shut down was a glitch with a control rod, although it was already scheduled to be shut down by Entergy. Furthermore, the conditional loan guarantee was set up by the Biden administration to support nuclear energy. The Palisades disbursement is the second loan guarantee that has been given out, with the first being a US$38 million guarantee given in January.
Project Overview
Location: Covert Township, Michigan
Developers: Holtec
Former operators: Entergy
Capacity: 800 MW
The Palisades Nuclear Plant is now subject to US Nuclear Regulatory Commission licensing approvals before Holtec can begin working on the plant in preparation for operations. “Unleashing American energy dominance will require leveraging all energy sources that are affordable, reliable and secure – including nuclear energy. Today’s action is yet another step toward advancing President Trump’s commitment to increase domestic energy production, bolster our security and lower costs for the American people,” said Secretary Wright.
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