Palisades Power Plant in Covert Township. (June 29, 2023)
GRAND RAPIDS, Mich. (WOOD) — Palisades power plant in Van Buren County is set to receive a $1.5 billion loan from the federal government to restart operations, Bloomberg reports.
As soon as next month, the funding may be offered to Holtec International Corp., the company who owns the power plant. It is set to get conditional backing from the U.S. Energy Department and will go toward restarting the plant, Bloomberg reported.
Palisades shut down in May 2022 for decommissioning. Holtec bought it and soon pitched the idea of a restart. Michigan’s budget for the upcoming fiscal years, which starts Oct. 1, includes $150 million to make it happen. Holtec says that Palisades “is now on track to become the first successfully restarted nuclear power plant in the United States.”
The Biden administration is prioritizing taking care of the nation’s fleet of nuclear plants to help meet its climate goals, including meeting 100% carbon-free electricity by 2035. Holtec says restarting Palisades will provide energy to Michigan, create hundreds of high-paying jobs and create tax revenue.
“This is a historic opportunity for the country and Michigan,” Holtec spokesman Nick Culp told Bloomberg. “As we transition away from fossil fuels, nuclear is going to be a critical part of not only reaching our climate goals but doing so in a way that ensures the lights stay on.”
In December, Holtec proposed adding two small nuclear reactors at the site, which would double the amount of electricity that could be produced. The company says it expects the existing reactor to be refurbished by the end of 2025 and to start building the small reactors by 2030.
