The Biden administration made a significant announcement on Wednesday, revealing a $1.5 billion loan to revive a nuclear power plant in Michigan.
The Energy Department’s Loan Program’s Office has provided a loan to Holtec, allowing them to restart the Palisades Nuclear Plant in Covert Township. This loan, funded by the Inflation Reduction Act, marks a significant milestone as it would be the first time a shuttered nuclear plant in the U.S. is recommissioned, pending approval from the Nuclear Regulatory Commission.
The Palisades plant, which was in operation from approximately 1977 until 2022, was purchased by a utility company based in Louisiana in 2007. Upon its reactivation, the Energy Department predicts that the 800-megawatt plant will generate electricity until at least 2051. In order to recommission the facility, the state Legislature has allocated $150 million. Both the administration and the state of Michigan aim to restart the plant by late 2025.
According to Energy Secretary Jennifer Granholm, nuclear power plays a crucial role in providing carbon-free electricity and supporting numerous jobs in the United States. Granholm, a former governor of Michigan, emphasized the significance of President Biden’s Investing in America agenda in advancing the clean energy workforce. Specifically, substantial funding has been allocated to the Holtec Palisades nuclear power plant, contributing to the growth and sustainability of this thriving industry in Michigan.
Michigan Governor Gretchen Whitmer expressed her gratitude to the bipartisan partners in the Michigan Legislature, the Biden-Harris Administration, Holtec, and labor for their collaboration in successfully restarting the Palisades nuclear power plant. She highlighted the significance of this achievement, as it will make history as the first successful restart of a nuclear power plant in American history. Governor Whitmer emphasized the positive impact this project will have on the region’s economy, estimating it to be around $363 million. She also emphasized that this milestone reaffirms Michigan’s commitment to clean energy and positions the state as a leader in this field.
The Biden administration has set an ambitious target of achieving a 100 percent renewable electrical grid by 2035. Although nuclear power generates minimal carbon emissions, it lost popularity in the United States during the latter part of the 20th century due to concerns about potential accidents, particularly following the Three Mile Island incident in 1979.
