Department of Energy grants $1.5B loan to restart Palisades
COVERT TWP. — Nearly two years after closing to be decommissioned, Palisades Nuclear Power Plant has officially secured the necessary funding to restart operations.
Former Michigan Gov. and U.S. Secretary of Energy Jennifer Granholm announced Wednesday, March 27, the Department of Energy Loan Office has approved a $1.5 billion loan to owner Holtec International, conditional on "certain technical, legal, environmental and financial conditions."
More: Holtec looks to nearly double generating capacity at Palisades
Granholm, along with Gov. Gretchen Whitmer, made the announcement during a morning visit to Palisades.
Granholm called the restart efforts a “big win for America” and said restarting Palisades is “critical” to “building America’s clean and secure energy future.”
“Restarting Palisades will grow our economy and help us protect our air, our land and our water,” Whitmer said. “It will also help us improve people’s lives. When a plant comes back to life, it represents hope for a brighter future. It means larger paychecks, more prosperity, a stronger sense of community.”
Holtec President Kelly Trice thanked Whitmer for her “steadfast” support of repowering the plant and said the Biden-Harris administration “moved the Earth” to help finance the project.
“By repowering Palisades, we are ensuring a vital part of energy and the landscape for decades to come,” Trice said.
With the funding secured, Palisades is in line to be the first nuclear reactor in the United States to restart after ceasing operations. The restart process is expected to take around 18 months, with the plant returning to operations in the fourth quarter of 2025.
Palisades closed in May 2022 after 50 years of power generation. Shortly after, it was sold to Holtec for decommissioning — but the company had other plans.
An effort to restart the plant, with support from Whitmer, was announced several months later, but an initial funding application through the Civil Nuclear Credit Program was denied in November 2022. The second, ongoing attempt to reopen Palisades launched in early 2023.
A power purchase agreement has already been secured with Wolverine Power Cooperative and Michigan bookmarked $150 million in its annual budget to aid the plant's transition.
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With the loan in place, Holtec still needs Nuclear Regulatory Commission approval to reinstate its operating license. The company formally submitted a filing to reauthorize operations in October.
Holtec will also need to rehire staff — a process that has already begun — conduct plant inspections, upgrade equipment, acquire new fuel and complete several other smaller projects.
The restart effort will support 1,000 jobs, Granholm said, with 600 permanent employees working at the plant once it returns to full operation.
In addition to restarting the main plant at Palisades, Holtec has expressed interest in constructing two small modular reactors at the site, which would nearly double the generating capacity at Palisades.
— Contact reporter Mitchell Boatman at mboatman@hollandsentinel.com.
This article originally appeared on The Holland Sentinel: Department of Energy grants $1.5B loan to restart Palisades
