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The U.S. Department of Energy (DOE) and U.S. Department of Agriculture (USDA) are allocating $2.8 billion to support reliable, affordable and clean power in the Midwest. The DOE announced the closing of a loan guarantee of up to $1.52 billion under the Inflation Reduction Act’s Energy Infrastructure Reinvestment program to Holtec Palisades, which will restore and resume service of an 800-MW nuclear generating station in Covert Township, Mich.
According to the DEO, this represents a first of a kind effort on its part to restart an American nuclear power plant—generating carbon pollution-free energy and saving and expanding a union workforce in Michigan while helping strengthen America’s nuclear energy sector and advance core climate and domestic energy goals.
Carbon-Free Energy Source
The USDA also announced more than $1.3 billion in Empowering Rural America (New ERA) program awards for two rural electric cooperatives––Wolverine Power Cooperative and Hoosier Energy––to reduce the cost of electricity passed on to their members for clean power from Holtec Palisades and other clean energy sources.
“Nuclear power is America’s largest source of carbon-free electricity, supporting hundreds of thousands of direct and indirect jobs across the country and will play a critical role in tackling the climate crisis and protecting public health and the environment from its impacts,” said U.S. Secretary of Energy Jennifer M. Granholm, in an announcement about the new investment.
“Under President Biden and Vice President Harris’ leadership, DOE and our partners across the federal government are working around the clock to ensure this vital source of clean electricity—and the vibrant workforce it supports—continues to power our nation for generations to come,” Granholm added.
The First of its Kind
The Palisades Nuclear Plant ceased operations in May 2022. It will be brought back online and upgraded to produce clean baseload power until at least 2051, subject to U.S. Nuclear Regulatory Commission (NRC) licensing approvals. The NRC also issued new guidance to ensure the restart is performed safely and to high standards.
Once completed, the project will be the first recommissioning of a retired nuclear power plant in U.S. history. Michigan Governor Gretchen Whitmer says reopening Palisades will keep energy costs low, shore up domestic energy production and secure Michigan’s competitiveness for future economic development.
Palisades will also hold the title of the “first successfully restarted nuclear power plant in American history” and will provide access to clean, reliable power for 800,000 homes. In addition, the plant restart will also help avoid about 4.47 million metric tons of greenhouse gas emissions (GHGs) annually for a total of 111 million metric tons of GHG emissions during the projected 25 years of operations—an amount roughly equivalent to the annual emissions of 882,000 homes.
