**Nuclear Power Plant Secures $1.5 Billion Loan for Historic Restart**
In a significant development for the nuclear industry, the Palisades nuclear plant in Michigan has finalized a $1.5 billion loan to support its restart, marking the first reactor restart in U.S. history. The loan, announced by the Department of Energy, will enable Holtec International, the plant’s owner, to revive operations in the fourth quarter of 2025, pending approval from the U.S. Nuclear Regulatory Commission.
The funding will be utilized for inspections, testing, restoration, and equipment replacement at the plant. Holtec has completed all major licensing submittals to the NRC and expects a response in 2025. The restart of Palisades would be a milestone for the nuclear industry, which has faced a decade-long wave of reactor shutdowns due to competition from cheap natural gas.
However, growing demand for carbon-free energy to meet rising electricity demand and climate goals has revived interest in nuclear power. The planned restart at Palisades has paved the way for Constellation Energy’s decision to bring Three Mile Island back online by 2028.
The Department of Energy has been actively supporting the nuclear energy sector, providing financing for advanced reactor deployment and helping to keep reactors online. According to David Turk, deputy secretary at the Department of Energy, electricity demand is expected to increase by 15% over the next few years, driven by the growth of artificial intelligence and domestic manufacturing.
The power generated by Palisades has already been spoken for by Wolverine Power Cooperative, a nonprofit that provides electricity to rural communities in Michigan. The plant’s restart will support 600 jobs in Covert Township and provide enough power for 800,000 homes. Holtec plans to nearly double the capacity of Palisades in the 2030s by building small modular reactors at the site, which promise to reduce costs and simplify plant operations.
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