Covert Township, Michigan – The Biden administration revealed a monumental $1.5 billion loan on Wednesday to facilitate the revival of a nuclear power plant in Covert Township, Michigan. Made possible through the utilization of funds from the Energy Department’s Loan Program’s Office with Inflation Reduction Act, this loan is set to enable Holtec to recommission the Palisades Nuclear Plant. If given the green light by the Nuclear Regulatory Commission, this endeavor would mark the first instance of the United States reviving a closed nuclear facility.
Originally operational from approximately 1977 until 2022, the Palisades Nuclear Plant was purchased by a utility company based in Louisiana back in 2007. The Energy Department estimates that once operational, the 800-megawatt plant will generate electricity until at least 2051. Supporting this initiative, the state Legislature has also allocated $150 million towards the recommissioning efforts, with both the administration and the state of Michigan aiming for a restart by late 2025.
Highlighting the environmental significance of nuclear power, Energy Secretary Jennifer Granholm emphasized the crucial role it plays in providing carbon-free electricity. Granholm, a former governor of Michigan, underscored President Biden’s commitment to bolstering the clean energy workforce through funding the restoration of the Holtec Palisades nuclear plant. Additionally, Michigan Governor Gretchen Whitmer expressed her gratitude towards the collaborative efforts of various stakeholders involved in this ambitious project.
Governor Whitmer lauded the prospective reopening of the Palisades plant as a pioneering achievement in American history, touting the substantial economic benefits and the pivotal role it will play in Michigan’s clean energy future. The Biden administration’s ambitious target of achieving a 100 percent renewable electrical grid by 2035 reflects a broader commitment to combat climate change. Despite its low carbon emissions, nuclear power faced a decline in popularity in the U.S. during the late 20th century due to concerns surrounding safety following incidents like the 1979 Three Mile Island accident.
As the Biden administration forges ahead with its renewable energy agenda, the efforts to revive the Palisades Nuclear Plant serve as a testament to the administration’s commitment to promoting clean energy and supporting job growth in the sector. With a significant focus on revitalizing the nation’s energy infrastructure, this initiative showcases a collaborative approach between federal, state, and private entities to achieve sustainable energy goals for the future.