Nuclear Is Back: U.S. Closes On $1.5 Billion Loan To Resurrect Holtec’s Palisades Nuclear Plant

Following the news of the Three Mile Island restart plans, it looks like our assertion that ‘nuclear is back’ is correct.

That’s because this week the U.S. closed on a deal to resurrect another nuclear plant, Holtec’s Palisades nuclear plant in Michigan, thanks to a $1.52 billion loan from the Biden administration, according to Reuters.

A senior Biden administration official stated that reopening the plant could take up to two years—longer than the company’s estimate.

The Reuters report said that the administration aims to triple U.S. nuclear power capacity as demand rises and climate concerns grow, which could include restarting decommissioned reactors like Three Mile Island, site of the nation’s worst nuclear accident. Restarting these plants is a complex and costly process that has never been done before in the U.S.

“Palisades is a climate comeback story,” said White House climate adviser Ali Zaidi, emphasizing that nuclear power supports high-paying union jobs.

The Department of Energy’s Loan Programs Office is providing $1.52 billion in financing, along with $1.3 billion in public funding to power cooperatives Wolverine and Hoosier Energy, for the purchase of power from Palisades. Deputy Energy Secretary Xochitl Torres Small made the funding announcement.

Recall just days ago we wrote that Sam Altman-backed Nuclear SMR company Oklo announced it had finalized an agreement with the Department of Energy to advance the next phase of sitting at the Idaho National Lab. 

As we’ve noted last week, the nuclear energy embrace is starting to make its way across the country. Just hours ago Pennsylvania Governor Josh Shapiro was urging for Three Mile Island to reopen as quickly as possible, as well. 

Following Microsoft’s agreement to purchase power from the dormant nuclear plant, Shapiro urged regulators to prioritize the reactor’s connection to the electrical grid, according to a new report from Barron’s.

In a letter to PJM Interconnection, the grid operator serving Pennsylvania and several other states, Shapiro emphasized that the plant should not face the extended delays typical for new developments, as Microsoft aims to start utilizing the reactor’s energy by 2028.

PJM Interconnection responded to Shapiro’s concerns, stating that it is developing a “fast track” process to prioritize certain electricity projects, potentially speeding up the reactor’s return to service.

Shapiro wants the reactor to “be allowed to come online as quickly as possible rather than waiting in the queue as if they were an entirely new development,” he wrote.