Holtec International, the owner of the Palisades nuclear plant in Michigan, has secured a $1.5 billion loan to support the first reactor restart in U.S. history. The company hopes to restart the plant in the fourth quarter of 2025, pending approval by the U.S. Nuclear Regulatory Commission. The funds will be used for inspections, testing, restoration, and rebuilding of equipment at the plant. Holtec has completed all major licensing submittals to the NRC and expects a response from the agency in 2025.
The restart of the Palisades reactor would signify a significant milestone for the nuclear industry following a decade-long wave of reactor shutdowns in the U.S. Palisades ceased operations in 2022 due to challenges in competing with cheap natural gas. The demand for nuclear power is increasing as the U.S. aims to meet rising electricity demands while achieving climate goals. The planned restart at Palisades has paved the way for Constellation Energy’s decision to bring Three Mile Island back online by 2028.
The Department of Energy has been supporting the nuclear energy sector through various tools to keep reactors online, bring them back into operation, and finance advanced reactor deployment. The growing demand for electricity, driven by factors such as artificial intelligence and domestic manufacturing, has led to agreements like Microsoft’s purchase of power from Three Mile Island to support its data centers. Palisades, once restarted, will provide power to 800,000 homes and support 600 jobs in Covert Township near Lake Michigan.
Holtec’s long-term plans for Palisades include nearly doubling the plant’s capacity in the 2030s by constructing small modular reactors on the site. These small reactors, which are prefabricated in multiple pieces, aim to accelerate the deployment of nuclear power by reducing costs and simplifying plant operations. The company’s ambition to expand Palisades with new designs reflects the broader industry trend towards developing innovative and more efficient nuclear technologies.
The restart of the Palisades reactor represents a significant step towards meeting the growing electricity demand in the U.S. while transitioning to cleaner energy sources. As the country strives to reduce its carbon footprint and combat climate change, nuclear power is being increasingly viewed as a reliable and carbon-free energy option. The investments and efforts being made in reviving Palisades and other nuclear plants demonstrate a commitment to a diverse energy portfolio that includes nuclear power alongside renewables and other sources.
Overall, the financing and planned restart of the Palisades nuclear plant by Holtec International signal a strong commitment to the nuclear energy sector and its potential to meet the U.S.’s energy needs in a sustainable and environmentally friendly manner. As the industry continues to evolve and innovate, developments like the expansion of Palisades with small modular reactors highlight the ongoing efforts to enhance the efficiency, safety, and viability of nuclear power as a crucial component of the nation’s energy landscape.
