Palisades Nuclear Plant restart effort gets next round of federal loan money
A second round of federal loan funding is en route to support the restart of the Palisades Nuclear Plant in Van Buren County, Michigan.
U.S. Department of Energy Secretary Chris Wright made the announcement Monday, approving the release of $56,787,300 out of the $1.52 million federal loan intended for the restart effort. The loan was approved in March 2024; and this is the second installment of the loan money.
Holtec International had acquired the 800-megawatt Palisades plant in Covert in 2022, with initial plans to dismantle it.
But plans changed. Subject to U.S. Nuclear Regulatory Commission approvals, Palisades is now on track to become the first commercial nuclear power plant to be reopened in the U.S. after a previous shutdown.
"Unleashing American energy dominance will require leveraging all energy sources that are affordable, reliable and secure - including nuclear energy," Wright said in his announcement. "Today's action is yet another step toward advancing President Trump's commitment to increase domestic energy production, bolster our security and lower costs for the American people."
The money is Holtec's second disbursement of funds from the Loan Programs Office since the announcement of its financial loan close. LPO funds are meant to go toward the plant restart and ensuring the plant is NRC compliant.
The restart is expected to support or retain up to 500 Michigan jobs, many of them filled by workers who had been at the plant for over 20 years.
Palisades was owned by CMS Energy from 1971 until 2007, when Entergy took over.
After Holtec purchased the site, then pivoted toward a restart, the company said it had commitments from two electric cooperatives to buy power from the plant.
