The Palisades Nuclear project restart has reached a major construction and commissioning milestone in Michigan. Fuel loading began on August 30, marking a crucial step toward returning the retired facility to service. The project aims to restore an 800-MW nuclear generating station after its 2022 shutdown. Once operational, the facility could provide reliable baseload electricity while strengthening Michigan’s power supply.
The restart also represents the first US effort to return a commercial reactor after entering decommissioning. Palisades permanently ceased operations on May 20, 2022, following more than 40 years of commercial generation. Holtec International later pursued the plant’s restoration after acquiring the facility during its decommissioning process. The company now leads an extensive refurbishment and regulatory program to restore the nuclear station.
The project carries up to $1.52 billion in federal financing through the Department of Energy. Michigan also committed $300 million to support the restart initiative. Furthermore, long-term power purchase agreements support the project’s commercial pathway.
Palisades Nuclear Project restart reaches fuel-loading milestone
The Palisades Nuclear Plant restart entered its fuel-loading phase after more than two years of preparation. Crews began loading nuclear fuel into the reactor vessel under the plant’s Technical Specifications. The process places the facility in Mode 6 during the controlled progression toward reactor startup.
The reactor core will contain 204 fuel assemblies after loading concludes. These assemblies include new fuel and partially used fuel from previous operating cycles. Together, they will support an expected electrical output of approximately 805 MW.
However, fuel loading does not mean the plant has resumed commercial electricity production. The facility must complete additional testing, inspections and startup activities before returning to operation. Holtec will therefore continue commissioning work alongside regulatory oversight from the Nuclear Regulatory Commission.
The NRC established the Palisades Nuclear Plant Restart Panel to oversee this first-of-a-kind effort. NRC staff will review licensing documents and inspect restored components throughout the restart process.
Palisades Nuclear Project refurbishment supports restart
The Palisades Nuclear Plant restart required extensive refurbishment across critical systems and components. Holtec reinforced tubes inside the plant’s two steam generators during the restoration program. Crews also removed accumulated corrosive materials from the steam generators’ steam-generation spaces.
Additionally, workers replaced control rod drive mechanism nozzles as part of the restoration work. The project also included chemical decontamination and passivation of the primary system. Engineers conducted reactor vessel inspections and upgraded numerous plant systems.
These activities aimed to restore equipment reliability and support long-term operation. The NRC continues inspecting systems and programs required for safe operation.
The DOE closed the $1.52 billion financing package in September 2024. The financing supports restoration and resumed service at the 800-MW generating station. DOE has subsequently released project funds through milestone-based loan disbursements. For instance, a sixth disbursement released $155.94 million in September 2025.
The federal government expects the restored plant to support up to 600 permanent jobs. Scheduled refueling and maintenance activities could support more than 1,000 additional jobs.
Meanwhile, Wolverine Power Cooperative and Hoosier Energy have signed long-term power purchase agreements. These agreements will support electricity sales once the reactor returns to commercial service.
The project therefore combines nuclear refurbishment, infrastructure reuse and new financing. It also demonstrates a different pathway for expanding nuclear capacity without constructing an entirely new reactor.
The facility could operate until at least 2051, subject to future NRC licensing approvals. Holtec also plans two SMR-300 advanced reactors at the Palisades site.
The Palisades Nuclear plant restart comes as the US also advances new nuclear technologies. For instance, Tennessee has cleared the way for construction of the 400MW Infinity Two fusion plant. The $223 million Project Infinity development will use stellarator technology at the former Bull Run power site. The project could begin construction as early as 2028, with full startup targeted for 2034.
Project fact sheet
Project: Palisades Nuclear Plant restart and refurbishment.
Type: Nuclear power plant restoration and recommissioning.
Location: Covert Township, Michigan, United States.
Site area: Approximately 432 acres.
Distance: Approximately five miles from South Haven, Michigan.
Reactor type: Pressurized-water reactor.
Generating unit: One nuclear reactor.
Existing capacity: Approximately 800 MW.
Expected output: Approximately 805 MW.
Commercial shutdown: May 20, 2022.
Operating history: More than 40 years.
Fuel-loading date: August 30, 2026.
Fuel assemblies: 204 assemblies.
Current phase: Fuel loading and pre-startup commissioning.
Federal financing: Up to $1.52 billion.
State financing: $300 million from Michigan.
Permanent employment impact: Up to 600 jobs.
Refueling employment: More than 1,000 seasonal jobs.
Major works: Equipment refurbishment, inspections, testing and system upgrades.
Steam-generator works: Tube reinforcement and corrosion-material removal.
Reactor works: Vessel inspections and control rod mechanism nozzle replacement.
Future capacity: Two proposed SMR-300 units.
Commercial status: Not yet generating electricity.
Regulatory authority: US Nuclear Regulatory Commission.
Project team
Owner: Holtec Palisades, LLC.
Developer and restart lead: Holtec International.
Operator: Holtec International, as NRC-authorized operator.
Federal financing partner: US Department of Energy.
Nuclear regulator: US Nuclear Regulatory Commission.
State funding partner: State of Michigan.
Power purchaser: Wolverine Power Cooperative.
Power purchaser: Hoosier Energy.
Nuclear industry support: Institute of Nuclear Power Operations.
Industry support: Nuclear Energy Institute.
Restart oversight: Palisades Nuclear Safety Review Board.
Previous owner: Entergy.
Original owner: CMS Energy.
Reactor technology: Westinghouse pressurized-water reactor technology.
Turbine generator: Westinghouse turbine-generator system.
Leave a Reply