The Palisades Nuclear Plant in Covert, Michigan, is set to restart after securing a $1.52 billion loan from the U.S. Department of Energy. Holtec International, a company specializing in nuclear decommissioning, purchased the plant in June 2022 with the original intent to dismantle it, but pivoted toward an ambitious plan to restart the reactor as part of a broader push to combat climate change through nuclear power. The plant will generate 800 megawatts of baseload power, enough to meet the electricity needs of roughly 800,000 homes, and create over 1,000 new jobs during refueling and maintenance. The plant's advanced age means it will require extensive upgrades to meet modern safety standards.

Key Points:

-Palisades Nuclear Plant in Michigan is set for a historic restart with a $1.52 billion DOE loan.

-Holtec International aims to extend Palisades' operational life, generating 800 megawatts of carbon-free electricity.

-The restart will preserve 600 jobs and create over 1,000 new ones, boosting local economic activity.

-Environmental groups voice concern that the plan presents danger to human life and ecosystems and will deter investment in renewable energy sources.

What is happening with the Palisades Nuclear Plant?

The Palisades Nuclear Plant in Covert, Michigan, is being prepared for a historic restart after securing a $1.52 billion loan from the U.S. Department of Energy (DOE) in late September 2024. This marks the first time a decommissioned nuclear reactor in the U.S. will be revived. The effort is part of the Biden administration’s broader push to revitalize the nuclear industry under the Inflation Reduction Act to meet clean energy goals and stabilize the power grid​.

Holtec International, a company specializing in nuclear decommissioning, purchased Palisades in June 2022 with the original intent to dismantle the plant. However, the company soon pivoted toward an ambitious plan to restart the reactor as part of a broader push to combat climate change through nuclear power, which provides a large-scale, carbon-free energy source. This marked a significant shift, as Palisades is the first U.S. plant slated for decommissioning to undergo a restart​.

What will Palisades contribute to Michigan’s energy grid?

Holtec views the Palisades restart as a crucial opportunity to help Michigan achieve its clean energy goals. Nuclear energy offers a reliable and scalable way to generate carbon-free electricity, complementing intermittent renewable sources like wind and solar. Holtec said it aims to extend the operational life of Palisades and make it a model for safely reviving aging nuclear plants​.

The company said Palisades will generate 800 megawatts of baseload power, enough to meet the electricity needs of roughly 800,000 homes. The company says its carbon-free energy source will be key in Michigan’s efforts to decarbonize and meet its growing energy demand, particularly as sectors like electric vehicles and data centers expand​.

How will the restart impact the local job market?

The reopening of Palisades is expected to preserve 600 existing jobs and create over 1,000 new ones during refueling and maintenance. This will boost local economic activity, benefiting the labor market and the region’s energy infrastructure​.

What challenges does owner Holtec International face in reopening Palisades?

Reopening a nuclear facility involves significant regulatory and technical hurdles. Holtec needs approval from the NRC, which requires a comprehensive assessment of the plant’s safety systems, infrastructure, and ability to handle radioactive waste. The plant’s advanced age means it will also require extensive upgrades to meet modern safety standards. Key components, such as the reactor pressure vessel and steam generators, must be inspected or replaced before operations can resume​. Before the plant can restart, the Nuclear Regulatory Commission (NRC) must approve its operating license, which involves rigorous safety evaluations​.

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What have Michigan politicians said about reopening Palisades?

Gov. Gretchen Whitmer has been one of the most vocal supporters of the Palisades restart. She has emphasized the plant’s potential to provide reliable, carbon-free energy to help Michigan reduce its greenhouse gas emissions and transition away from fossil fuels. Whitmer has highlighted the role that nuclear energy can play in achieving the state’s climate goals, saying the restart of Palisades would help Michigan remain competitive in attracting economic development tied to clean energy industries​.

U.S. Energy Secretary Jennifer Granholm, a former governor of Michigan, has also strongly supported the reopening. She has praised nuclear energy as crucial for meeting America’s clean energy future and described the federal loan as a significant step toward reducing carbon emissions while creating high-paying jobs. Granholm’s Department of Energy has been instrumental in providing the $1.52 billion loan that is helping make the restart possible​.

What are the environmental and regulatory challenges?

Holtec is working to secure Palisades’ operating license approval from the NRC. The process involves extensive reviews of the plant’s safety and infrastructure. An environmental review will also assess the potential impacts on Lake Michigan. Public input will play a role in this review process, which will receive the concerns of local communities and environmental groups.

Groups, including the Michigan Sierra Club and Beyond Nuclear, have raised concerns about nuclear waste storage near Lake Michigan. Critics argue that the risks of radioactive contamination in the Great Lakes ecosystem are significant, given the plant’s history of safety violations

What’s next for Palisades?

Holtec plans to restart the existing reactor by late 2025 and is exploring adding small modular reactors (SMRs) to the site. These SMRs could double the plant’s energy output, further integrating nuclear energy into Michigan’s energy grid​.

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Nina Misuraca Ignaczak is an award-winning Metro Detroit-based editor, journalist, and documentary filmmaker. She is the founder, publisher, and editor of Planet Detroit, a digital media startup focused on producing quality climate, equity, health, and environment journalism that centers grassroots voices, holds power accountable, and spotlights solutions. Planet Detroit has received awards and recognition from the Society for Professional Journalists Detroit, the Institute for Nonprofit News, and LION Publishers since its establishment in 2019. Prior to her journalism career, Nina worked in urban planning in local government and nonprofit sectors, holding a Master of Science in Natural Resource Ecology and a Bachelor of Science in Biology from the University of Michigan, Ann Arbor.