The Palisades Nuclear Generating Station in Covert, Michigan, has secured a $1.5 billion loan to support the first reactor restart in U.S. history, the Department of Energy announced on Monday. The plant, owned by Holtec International, aims to restart in the fourth quarter of 2025, pending approval from the U.S. Nuclear Regulatory Commission (NRC). Holtec International is a privately held nuclear technology firm based in Jupiter, Florida.
Nick Culp, a spokesperson for Holtec, confirmed that all necessary funding has been obtained. The funds will be allocated for inspections, testing, restoration, rebuilding, and equipment replacement at the plant, according to the Department of Energy. Holtec has submitted all major licensing documents to the NRC, and the company expects a response by 2025.
The reactor’s restart at Palisades represents a significant milestone in the nuclear industry, which has experienced numerous reactor shutdowns over the past decade. Palisades ended operations in 2022 due to challenges in competing with inexpensive natural gas.
As the U.S. seeks carbon-free energy to meet rising electricity demand and climate goals, the demand for nuclear power is increasing. The planned restart at Palisades has influenced Constellation Energy’s recent decision to reactivate Three Mile Island by 2028.
Deputy Secretary of the Department of Energy, David Turk, stated that various strategies have been employed to support the nuclear energy sector, including efforts to keep reactors online, bring them back into operation, and finance advanced reactor deployment. He added that electricity demand is projected to increase by about 15% over the next few years, driven by artificial intelligence and expanding domestic manufacturing.
Microsoft has committed to purchasing power from Three Mile Island to supply its data centers. For Palisades, the generated power is secured by Wolverine Power Cooperative, a nonprofit organization providing electricity to rural communities in Michigan.
Palisades will create 600 jobs in Covert Township near Lake Michigan and supply enough power for 800,000 homes, according to Turk. In the 2030s, Holtec plans to nearly double the plant’s capacity by constructing new small modular reactors at the site. These smaller reactors, prefabricated in several pieces, are expected to accelerate the deployment of nuclear power by reducing costs and simplifying plant operations.
