A view of the grounds at the Palisades nuclear reactor in Covert Township, Michigan, U.S., August 14, 2024.
The Energy Department’s Loan Programs Office (LPO) is facilitating the financing to support the reactivation of the 800-megawatt reactor, which was closed by Entergy in 2022 after operating for over 50 years. The early shutdown, prompted by a control rod issue, occurred despite a $6 billion federal initiative to sustain nuclear plants facing rising operational costs. Energy Secretary Chris Wright stated: “With projects like the Palisades Nuclear Plant, the Energy Department is working to ensure America’s nuclear renaissance is just around the corner.”
Holtec is currently repairing steam generators at Palisades, as maintenance protocols were not followed during the shutdown. The company still requires permits from the Nuclear Regulatory Commission to proceed with the reopening. The project aligns with growing support for nuclear power, driven by increasing electricity demand—the first rise in two decades—fueled by advancements in artificial intelligence, cryptocurrency, and electric vehicles.
The LPO, with access to hundreds of billions in financing, is expected to prioritize funding for nuclear power, critical minerals, power transmission, and geothermal energy under the current administration. However, the office has faced challenges, with approximately 100 of its 220 staff members accepting buyouts offered by the Trump administration, impacting its operational capacity.
The Palisades project reflects efforts to revitalize nuclear energy infrastructure in the U.S., addressing both energy demands and the maintenance of existing facilities. The ongoing repairs and regulatory processes will be critical to meeting the targeted reopening timeline.
