- The US Department of Energy {DOE) has secured a $1.52 billion loan to restart the Palisades Nuclear Power Plant in Michigan, contributing to the state’s goal of achieving 100% clean energy by 2040.
- Once reopened, the plant is expected to power 800,000 homes and provide an estimated $40 million in annual tax revenue, addressing significant economic losses from its previous shutdown.
The US Department of Energy (DOE) has finalised a $1.52 billion loan agreement to restart operations at the Palisades Nuclear Power Plant in Michigan. This is a crucial step toward the state’s goal of generating all its energy from clean sources by 2040. This project also received a $1.3 billion grant from the US Department of Agriculture and an additional $300 million allocated from Michigan’s 2025 budget.
Governor Gretchen Whitmer announced, “Reopening Palisades will keep energy costs low, bolster domestic energy production, and enhance Michigan’s competitiveness for future economic development.” She emphasised the state’s commitment to implementing the nation’s most robust clean energy labour standards and expediting renewable energy projects.
The Palisades plant was shut down in May 2022 and sold to Holtec International the following month, leaving Michigan with only two operational nuclear power plants, Fermi and Donald C. Cook. If successful, the restart of Palisades will mark the first time in US history that a nuclear power plant has been successfully reopened.
The project has garnered support from various stakeholders, including the Michigan Legislature, Wolverine Power Cooperative, and Holtec. Once operational, Palisades is expected to generate enough electricity to power approximately 800,000 homes.
State Representative Joey Andrews, D-St. Joseph expressed pride in Southwest Michigan’s leadership in restarting a nuclear power plant, stating, “This historic achievement advances our economy, provides high-paying job opportunities, and helps us achieve our clean energy goals.”
A 2023 study from the Economic Growth Institute at the University of Michigan found that the plant’s shutdown resulted in an annual loss of $259 million for the region, while reopening it could generate around $40 million in yearly tax revenue. In 2021, nuclear energy accounted for 30% of Michigan’s electricity, according to the US Energy Information Administration.