The federal government will provide a $1.5 billion loan to restart a nuclear power plant in southwest Michigan, officials announced Wednesday.
Holtec International plans to acquire and dismantle the 800-megawatt Palisades power plant in 2022. But now the focus is on reopening by the end of 2025, with help from the state of Michigan and the Biden administration.
Gov. Gretchen Whitmer said this would be the first nuclear power plant to be restarted in the United States. It still faces hurdles, including inspections, testing and the blessing of the U.S. Nuclear Regulatory Commission, known as the NRC.
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“Nuclear power is our single largest source of carbon-free electricity, directly supporting 100,000 jobs across the country and creating hundreds of thousands more,” said Energy Secretary Jennifer Granholm, a former Michigan governor. “We are indirectly supporting them,” he said.
Joe Biden, President of the United States, March 31, 2022. (Reuters/Kevin Lamarque/File Photo)
The Palisades factory is located on Lake Michigan, a two-hour drive from Chicago. Michigan power company CMS Energy has owned the power plant since 1971 and sold it to Louisiana-based power company Entergy in 2007. The power plant was closed in 2022.
Holtec said it so far has long-term commitments from two electric cooperatives to purchase power from the plant.
“Re-electrification of the Palisades will restore safe, 24-hour power generation to hundreds of thousands of homes, businesses and manufacturers,” said Chris Shinn, president and chief executive officer of Holtec. Stated.
But critics have also emerged. A coalition opposed to restarting what they derisively call “zombie reactors” has requested a public hearing from the NRC.
Holtec spokesman Patrick O’Brien said it would take four to five months to finalize a financial agreement with the government.
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“This is a debt that has to be repaid,” he said.
