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Bloomberg News reports that the US federal government intends to offer a $1.5 billion loan to Holtec International to restart Michigan’s Palisades Nuclear plant, mothballed since 2022. The loan is expected to be confirmed within the next few weeks.
Early last year Holtec applied to the US Department of Energy’s Loan Programmes Office for federal funding to repower Palisades, an 800 MW plant in Covert Township, Michigan. Holtec acquired the plant in June 2022.
There is currently a $6 billion fund aimed at supporting the continued operation of US nuclear plants, or the restart of plants already closed. The Civil Nuclear Credit programme was born out of the infrastructure bill signed into law in November 2021. The Biden Administration has expressed support for extending the lives of large nuclear plants.
Any restart will depend on federal dollars coming to Holtec. It is believed that hundreds of millions of dollars would be required for facility renovations, and to buy nuclear fuel. Michigan included a $150 million facility to restart the plant in its last budget in June 2023.
Holtec and Wolverine Power Co-operative have signed a long-term power purchase agreement, under which Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric co-operatives. Indiana-based Hoosier Energy, another G&T Co-operative, would purchase the rest.
Image: Palisades nuclear power plant (courtesy of Holtec)
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