Holtec International, a diversified energy technology company headquartered in Florida, bought the Palisades plant in 2022 to decommission the facility, which had struggled to compete with natural gas-fired plants and renewable energy.
According to the long-term power purchase agreement, Wolverine Power Cooperative, a not-for-profit energy provider to the rural communities across Michigan, is committing to purchase up to two-thirds of the carbon-free power generated by the Palisades plant for its Michigan-based member rural electric cooperatives.
While, Wolverine's nonprofit rural electric cooperative project partner, Hoosier Energy, will purchase the balance.
"The restart of Palisades offers a practical, long-term solution to electric reliability in our state and aligns with Michigan's ambitious goals to reduce carbon emissions," said CEO of Wolverine Eric Baker.
The companies did not say how much the agreement was worth or how long it was for.
The agreement also contains a contract expansion provision to include up to two small modular reactors that Holtec intends to build and commission at the site. This addition would translate into eliminating nearly 7 million tons of carbon dioxide each year from Michigan's air, according to the company.
Holtec is still working to get a federal loan approved the U.S. Department of Energy's Loan Programs Office to re-power the plant.
