Michigan's Palisades Nuclear Plant To Restart After $1.5B Federal Loan, First In US History

The Palisades nuclear plant in Michigan has finalized a $1.5 billion federal loan to support the first reactor restart in U.S. history.

What Happened: The plant, owned by Holtec International, aims to restart operations in the fourth quarter of 2025, pending approval from the U.S. Nuclear Regulatory Commission (NRC). Holtec, a nuclear technology firm based in Jupiter, Florida, has completed all major licensing submissions to the NRC, CNBC reported on Monday.

The loan will be used for inspections, testing, restoration, and equipment replacement at the plant.

The restart marks a significant milestone for the nuclear industry, following a decade of reactor shutdowns due to competition from affordable natural gas. The demand for nuclear power is increasing as the U.S. seeks carbon-free energy solutions to meet rising electricity needs and climate goals.

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Deputy Secretary of the Department of Energy, David Turk, emphasized the importance of nuclear energy in meeting future electricity demands, which are expected to rise by 15% in the coming years. The Palisades plant will support 600 jobs and provide power for 800,000 homes.

Why It Matters: The Palisades plant’s recommissioning is a pivotal event in the U.S. energy landscape. The plant, originally built in the late 1960s and operational since 1973, was acquired by Entergy Corp in 2006 and ran until its shutdown in 2022. The decision to restart the plant comes amid a renewed interest in nuclear energy, driven by the increasing energy demands of power-hungry technologies like artificial intelligence. This move aligns with the broader push for carbon-free energy sources. The recommissioning of Palisades is not just a technical achievement but also a strategic step towards meeting the U.S.’s climate goals and rising electricity needs.

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Photo by metamorworks via Shutterstock

This story was generated using Benzinga Neuro and edited by Pooja Rajkumari