Three Mile Island Reactor Set to Restart with $1 Billion Loan
Three Mile Island is making a comeback, backed by a $1 billion loan from the Trump administration aimed at restarting the reactor.
The Department of Energy announced the financial support on Tuesday, granting the funds to Constellation Energy based in Baltimore. This revival could enhance the safety of the Mid-Atlantic power grid and potentially supply renewable electricity to around 800,000 homes.
Back in 1979, the site experienced a meltdown due to a coolant failure that released radioactive iodine, although one of the reactors kept running for several years afterward.
Energy Secretary Chris Wright pointed out that many Americans have faced challenges with rising electricity prices recently. He noted that upon taking office, the Trump administration had been looking at shutting down an additional 100 gigawatts of reliable power in the city.
“Our goal is to produce as much stable electricity as possible to curb these price spikes and strengthen America’s production capability, which in turn supports our manufacturing industry and gives us an edge in the AI arena,” Wright expressed.
Unit 2 has been inactive since a failed incident in March, while Unit 1 operated until the early 2010s when financial reasons led to its shutdown.
Constellation Energy previously revealed plans to power future AI data centers at the site after signing a partnership with Microsoft.
In July, the Nuclear Regulatory Commission held discussions in Harrisburg, Pennsylvania, to explore reopening the facility, now referred to as the Crane Clean Energy Center.
Greg Beard, from the Department of Energy’s Office of Loan Programs, confirmed that the $1 billion loan is specifically aimed at restarting the Three Mile Island reactor.
Beard highlighted that the site’s potential of 800 megawatts would be vital in providing reliable and affordable baseload power to the regional grid authority, PJM.
He mentioned that the project’s potential realization might come as soon as 2027.
Wright noted that one of the significant challenges in the U.S. energy landscape has been affordability, especially as utility costs have surged in recent years. He remarked that when President Trump assumed office, he reversed efforts to shut down substantial sources of affordable energy and has since pushed for restarting various nuclear plants that had been closed under the Biden administration. He referred to the Three Mile Island initiative as “exactly what America needs.”
Beard also mentioned that his office is actively processing applications for a variety of energy projects, including nuclear, coal, oil, gas, and critical minerals, emphasizing the aim to rejuvenate the energy supply chain.
Constellation entered into a 20-year lease for the Three Mile Island site late last year, rebranding the facility after former CEO Christopher Crane.
Notably, efforts to reopen this once-notorious site have garnered bipartisan support.
Pennsylvania Governor Josh Shapiro previously commented on the state’s nuclear industry, describing it as a key player in advancing green energy. He stated that it contributes to carbon-free electricity, reduces emissions, and supports economic growth in Pennsylvania.
