DOE OKs $1.5B loan for “restoration and maintenance” at Palisades
NRC accepting hearing requests on Holtec’s restart plans
The Department of Energy has signed off on a $1.5 billion loan guarantee to Holtec Palisades LLC to support initial work needed to restart the Michigan nuclear plant.
The funding is earmarked for “general restoration and maintenance activities in support of repowering [Palisades], an 800-MW electric nuclear generation station in Covert Township, Michigan,” according to a notice in the Federal Register. The loan is not to be used for refueling, power ascension, or power generation unless or until the Nuclear Regulatory Commission issues a favorable review of the project’s environmental impact.
“Activities associated with [Palisades] refueling, repowering, and operations . . . are not yet ripe for environmental analysis or decisions,” according to the DOE’s record of decision.
If approved by all agencies involved, Palisades would be the first U.S. nuclear plant to restart.
Background: Palisades nuclear power plant was shuttered in May 2022 and subsequently acquired by Holtec for decommissioning. In October 2023, Holtec submitted an operating licensing application for Palisades to the NRC with the intention of seeking financial assistance from the DOE to restore the facility’s commercial operations. In parallel, Holtec is also seeking a subsequent license renewal that would allow Palisades to operate until at least 2051.
Holtec has indicated interest in expanding Palisades with two small modular reactors as well.
During a congressional hearing in June, NRC chair Christopher Hanson said that review of Holtec’s plans should be determined by May 2025. If approvals come through, Palisades could resume operations later next year.
To support that goal, Holtec has added 150 workers (bringing the total to 360) at Palisades—including former plant employees and new recruits.
Related news: The NRC is now taking public requests for hearings on two aspects of Holtec’s plans to restart the Palisades nuclear plant in Michigan.
- The first opportunity covers license amendment requests from Holtec that would restore aspects of the Palisades license to those required for an operating reactor. The filing deadline for this hearing opportunity is Oct. 4.
- The second opportunity covers the request to transfer the Palisades license from Holtec Decommissioning International to Palisades Energy LLC. The filing deadline for the transfer hearing opportunity is Aug. 26.
NRC staff have determined Holtec’s requests contain sufficient information for the agency to formally docket them and conduct the required technical reviews. Docketing the requests is not an indication of whether the NRC will approve the license amendments or transfer.
