The Biden Administration will provide a $1.5 billion loan to restart a nuclear power plant in Michigan, which would be the first time a nuclear plant has been re-opened in the United States

The Biden Administration will provide a $1.5 billion loan to restart a nuclear power plant in Michigan, which would be the first time a nuclear plant has been re-opened in the United States.

Holtec International, which acquired the 800-megawatt Palisades plant in 2022 with plans to dismantle it, is now focusing on restarting it by late 2025, following support from the state of Michigan and the Biden administration.

Governor Gretchen Whitmer stated that it would be the first nuclear power plant to be reopened in the U.S. However, it still faces hurdles, including inspections, testing, and approval from the U.S. Nuclear Regulatory Commission (NRC).

Energy Secretary Jennifer Granholm, a former Michigan governor, highlighted the importance of nuclear power as the largest source of carbon-free electricity, supporting 100,000 jobs directly across the country and many more indirectly.

Located along Lake Michigan, a two-hour drive from Chicago, the Palisades plant was owned by Michigan utility CMS Energy from 1971 until it was sold to Louisiana-based utility Entergy in 2007. It was shut down in 2022.

Holtec has secured long-term commitments from two electric cooperatives to purchase power from the plant once it is operational.

However, critics have emerged. A coalition opposed to restarting the plant, which it derisively calls a "zombie reactor," has requested a hearing at the NRC.

Holtec spokesman Patrick O’Brien said it will take four to five months to finalize the financial deal with the government, emphasizing that it is a loan that will need to be repaid.

Nuclear energy has gained attention recently, with 34 countries, including the U.S., pledging to use it to reduce reliance on fossil fuels. In California, regulators have extended the operating life of the Diablo Canyon plant through 2030 to prevent blackouts as the state transitions to renewable power sources. Owner Pacific Gas & Electric attributed its ability to repay a state loan to federal aid.

"There is more enthusiasm toward nuclear power — in Congress, in the industry, and also internationally," said Najmedin Meshkati, an engineering professor at the University of Southern California with experience inspecting nuclear plants worldwide.