Holtec, an energy technology company based in Florida, filed with the U.S. Nuclear Regulatory Commission to reopen the 800-megawatt Palisades plant it says would employ more than 600 workers.
Originally, Holtec had bought Palisades last year to decommission it. The plant shut about 10 days earlier than expected in May 2022, after discovery of a problem with a control rod drive seal and faced with competition from natural gas-fired electricity and renewable energy.
Now some analysts say prospects for nuclear power have improved as governments seek sources of lower-emissions electricity in the fight against climate change.
Timothy Fox, an energy policy analyst at ClearView Energy Partners, said Holtec faces a series of regulatory hurdles for a Palisades restart. But those are "surmountable" and there are "favorable odds" that Palisades will re-open by the company's expected date of August, 2025, Fox said.
Patrick O'Brien, a Holtec spokesperson, said the control rod seal issue would be addressed ahead of a restart.
President Joe Biden's administration has said nuclear power is a crucial source of virtually emissions-free electricity generation that should be maintained and expanded to reach a pledge of 100% U.S. clean electricity by 2035.
Holtec has applied for a loan from the U.S. Department of Energy's Loan Programs Office to help restart the plant and expects to hear about its application late this year or in 2024.
In July, Michigan Governor Gretchen Whitmer signed a budget that provides $150 million in funding for a Palisades restart.
Last month, Holtec signed an agreement with Wolverine Power Cooperative, a not-for-profit energy provider, to purchase up to two-thirds of the power generated by Palisades.
