The US government will provide a $1,5 billion loan to restart the Palisades nuclear power plant in southwest Michigan with a capacity of 800 MW.
Palisades Nuclear Power Plant. Image: Nuclear Regulatory Commission
American company Holtec International acquired the Palisades factory in 2022 with plans to dismantle the structure. But now, the company is moving to restart the factory by the end of 2025 with support from the state of Michigan and the Joe Biden administration, Interesting Engineering reported on April 28.
Palisades has a capacity of 800 MW and will stop operating from May 5. This will be the first nuclear power plant to reopen in the US, according to Michigan Governor Gretchen Whitmer. The plant will still face many challenges such as inspections, testing and approvals from the US Nuclear Regulatory Commission (NRC).
“Holtec has secured a $1,5 billion conditional commitment for a loan from the U.S. Department of Energy to reopen the Palisades nuclear power plant, securing 600 high-wage, high-skilled jobs, while providing clean, reliable power to 800.000 homes. Once opened, Palisades will be the first successfully restarted nuclear power plant in US history," Whitmer said.
Nuclear power plants stand out for their ability to produce large amounts of electricity without emitting greenhouse gases that cause global warming. This environmental friendliness receives support from both policymakers and leading industry companies. However, the process of modernizing reactors, such as Palisades, faces many financial and logistical challenges.
"Reviving" the Palisades factory is expected to bring great benefits to the environment. During the expected 25-year operation period, the plant is estimated to help prevent 111 million tons of CO2 emissions, equivalent to removing 970.000 gasoline cars from the streets each year. Clean energy from the plant will be an important addition to the power grid, especially when coal power plants are gradually phased out. Palisades has now reached agreements to sell all of its power to rural electric organizations in the states of Michigan, Illinois and Indiana.
Thu Thao (Follow Interesting Engineering)
