Biden To Lend $1.5 Billion To Restart Palisade Nuclear Plant
Thursday, March 28, 2024

(UNDATED) - The federal government announced Wednesday it will be providing a $1.5 billion loan to restart the Palisades Nuclear Plant in Michigan.

Holtec International acquired the 800 megawatt Palisades plant in 2022 with plans to dismantle it. But now the emphasis is on restarting it by late 2025, following support from the State of Michigan and the Biden administration.

Governor Gretchen Whitmer said it would be the first nuclear power plant to be reopened in the U.S. It still faces hurdles, including inspections, testing and the blessing of the U.S. Nuclear Regulatory Commission.

U.S. Energy Secretary and former Michigan Governor Jennifer Granholm says nuclear power is the single largest source of carbon-free electricity, directly supporting 100,000 jobs across the country and hundreds of thousands more indirectly.

The Palisades plant is along Lake Michigan, and was owned by CMS Energy from 1971 until it was sold to Louisiana-based utility Entergy in 2007. It was shut down in 2022. Holtec said it has long-term commitments so far from two electric cooperatives to buy power from the plant.

Critics of the restarting, however, have emerged. A coalition opposed to restarting what it derisively calls a “zombie reactor” has requested a hearing at the Nuclear Regulatory Commission.

Holtec spokesman Patrick O'Brien said it will take four to five months to finalize the financial deal with the government.