LANSING, Michigan: This week, US officials said that the federal government will provide a US$1.5 billion loan to restart a nuclear power plant in southwestern Michigan.
In 2022, Holtec International acquired the 800-megawatt Palisades plant in 2022 with a plan to dismantle it, but after the state of Michigan and the Biden administration pledged support, it will instead be restarted by late 2025.
Michigan Gov. Gretchen Whitmer said that if the plan receives the approval of the Nuclear Regulatory Commission, Palisades would be the first nuclear power plant to be reopened in the US.
Energy Secretary Jennifer Granholm, a former Michigan governor, said, “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.”
Located along Lake Michigan some two-hours by car from Chicago, the Palisades plant was owned by Michigan utility CMS Energy from 1971 until it was sold to Louisiana-based utility Entergy in 2007. It was shut down in 2022.
So far, it has long-term commitments from two electric cooperatives to buy power from the plant, Holtec said.
Kris Singh, Holtec president and chief executive, said, “The repowering of Palisades will restore safe, around-the-clock generation to hundreds of thousands of households, businesses and manufacturers.”
However, a coalition opposed to restarting the plant, calling it a “zombie reactor,” requested a hearing at the NRC.
Holtec spokesman Patrick O’Brien said it will take four to five months to finalize the financial deal with the government.
“It is a loan we have to pay back,” he said.
