NRC Approves Restart of Palisades Nuclear Plant in Michigan

News Summary

The U.S. Nuclear Regulatory Commission has approved Holtec International’s request to transition the Palisades Nuclear Plant back to operational status. This historic decision marks the first time a previously shut down nuclear facility in the U.S. will resume operations. With power generation projected to begin in late 2025, the plant is expected to provide over 800 megawatts of carbon-free energy, create approximately 600 jobs, and support Michigan’s goal of carbon-free electricity by 2040. However, concerns about safety and environmental impacts remain.

Covert Township, Michigan — The U.S. Nuclear Regulatory Commission (NRC) has approved Holtec International’s request to transition the Palisades Nuclear Plant from decommissioning status back to an operational license, marking a historic first for the U.S. nuclear energy sector. This decision allows a previously shut down nuclear power plant to resume operations, an unprecedented milestone in the industry.

The Palisades Nuclear Plant, located near the coast of Lake Michigan in Covert Township, was closed in May 2022. After being sold by Entergy to Holtec in June 2022, the plant is projected to begin power generation again in the fourth quarter of 2025. When operational, it is expected to generate over 800 megawatts of carbon-free baseload power, enough to supply electricity to more than 800,000 homes.

With the NRC’s approval, Holtec can start loading nuclear fuel into the reactor and officially transition licensed reactor operators back to on-shift status. The facility is anticipated to create around 600 full-time jobs, supplemented by an additional 1,000 skilled trade workers, vendors, and suppliers that will support operations.

The reopening of Palisades is being backed by significant financial investments, including a pledge of $300 million from Michigan and a federal loan guarantee of $1.52 billion. Additionally, $1.3 billion in grants have been allocated for two rural cooperatives purchasing power from Palisades, underlining the investment’s strategic importance.

This restart aligns with Michigan’s objectives to achieve 100% carbon-free electricity by 2040, as nuclear energy is seen as a critical component in replacing coal plants, which are being phased out due to environmental concerns and state policies. Critics, however, have raised safety issues related to potential accidents and the storage of spent fuel near the Great Lakes, where environmental risks are a concern.

Public opinion surrounding nuclear power is reportedly shifting. There is increasing bipartite support for its expansion in Michigan, driven in part by rising energy demands tied to technological advancements, including the growth of artificial intelligence systems and data centers. The restart of the Palisades Nuclear Plant also resonates with national interests regarding energy independence and responses to climate change challenges.

In addition to the reactor’s restart, Holtec is planning to construct two small modular reactors (SMRs) at the Palisades site, which would yield an additional 600 megawatts of power, further enhancing the energy contribution of the facility. However, the NRC is currently reviewing several licensing actions, and Holtec must meet additional regulatory requirements before the plant can officially operate under its original license, which expires in March 2031.

This development signals a growing trend within the nuclear industry where plants that have previously shut down may resume operations. This shift has been observed with other facilities, such as the former Three Mile Island plant in Pennsylvania. Local political figures, including the Michigan Governor and Congressman Bill Huizenga, have expressed support for the plant’s reopening, emphasizing its potential for job creation and stability in energy supply.

Despite this progress, opposition remains, as anti-nuclear groups have committed to challenging the plant’s reopening through legal appeals, reflecting ongoing concerns over nuclear energy’s safety and environmental implications.

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