A $1.5 billion loan to restart a nuclear power facility in Michigan was announced by the Biden administration on Wednesday.
Holtec will be able to restart the Palisades Nuclear Plant in Covert Township thanks to a loan provided by the Energy Department’s Loan Program’s Office using monies from the Inflation Reduction Act.
The restoration would be the first time a closed nuclear facility in the United States was put back into service, provided the Nuclear Regulatory Commission gave its approval.
Operating from around 1977 to 2022, the plant was purchased in 2007 by a utility company based in Louisiana. When the 800-megawatt Palisades facility is restarted, the Energy Department estimates that it will continue to provide electricity until at least 2051.
In addition, $150 million has been set aside by the state Legislature to reopen the facility. A late 2025 restart is the goal that the administration and the state of Michigan have established.
“Nuclear power is our single largest source of carbon free electricity, directly supporting 100,000 jobs across the country and hundreds of thousands more indirectly,” Energy Secretary Jennifer Granholm, the former governor of Michigan, stated in a statement. “President Biden’s Investing in America agenda is supporting and expanding this vibrant clean energy workforce here in Michigan with significant funding for the Holtec Palisades nuclear power plant.”
