COVERT TOWNSHIP, Mich. — The effort to restart the Palisades Nuclear Plant is getting a big funding boost thanks to the federal government.
On Wednesday, March 27,the U.S. Department of Energy announced a $1.52 billion loan for Holtec Palisades, LLC, the company that owns the nuclear facility. The funding will come through the department's Loan Programs Office, pending technical, legal, environmental, and other approvals for the plant's restart.
The announcement came during a visit to the facility's training center by Governor Gretchen Whitmer and U.S. Secretary of Energy Jennifer Granholm.
“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,” said Granholm. ”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.”
"I am so grateful to my bipartisan partners in the Michigan Legislature, the Biden-Harris Administration, Holtec, and labor for coming together to get this done," said Whitmer. "Together, we are showing the world that Michigan is a place where history is made by hardworking people.”
“Holtec’s historic repowering of the Palisades Nuclear Power Plant will provide safe, reliable energy to meet Southwest Michigan’s growing needs," said Congressman Bill Huizenga.
“The repowering of Palisades will restore safe, around-the-clock generation to hundreds of thousands of households, businesses, and manufacturers," said Dr. Kris Singh, Holtec President and CEO. "It also confers the environmental and public health benefits of emissions-free generation, hundreds of high-paying local jobs with a large union workforce, economic growth, and the social benefits of a strong community partner."
Palisades stopped generating power in May 2022 after years of delays in its deactivation. If its nuclear plant comes back on online, it would be the first restart of a shut down nuclear facility in the U.S.
The plant's owner has petitioned for a restart since before the closure. That effort was long supported by local lawmakers to keep open, but months after its closure Governor Whitmer began publicly calling for it to re-open. The Biden Administration joined the Governor in that support. Wednesday's announcement came months aftera report said the Department of Energy would provide funding for the restart.
The Department of Energy says bringing the plant back online matches Biden's goals of protecting the environment and supporting the creation of good-paying jobs. Palisades is estimated to avoid the generation of nearly 4.5 million tonnes of CO2 emissions by less-clean power plants each year; that's roughly the same as taking more than 38,000 gasoline vehicles off the road. President Biden has a goal of a 100% clean electric grid by 2035 and a net zero emissions economy by 2050.
Nearly 600 jobs are tied to the plant's daily operations; around 45% will be unionized.
The state legislature provided $150 million for the plant's restart in its 2024 fiscal year budget.
Holtec Palisades has already signed a long-term Power Purchase Agreements for the full power output with electric co-ops Wolverine Power Cooperative and Hoosier Energy in Michigan, Illinois, and Indiana. Electricity from the plant will be supplied to roughly 800,000 households.
In addition to the main 800-MegaWatt reactor, Holtec intends to use the Palisades site as the location for its first two small modular reactor units. The two units could add an additional 800 MW of generation capacity at the site.
The restart of the main reactor still requires approval from the U.S. Nuclear Regulatory Commission. Holtec hopes to have the reactor operational in 2025.
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