It’s looking like Holtec International, the owner of the Palisades nuclear power plant, is going to be approved for a $1.5 billion federal loan to get the facility running again.
Bloomberg and The Detroit News both reported this week the Biden administration is planning to approve Holtec’s request for the loan from the U.S. Department of Energy as the administration seeks to reduce the nation’s carbon emissions. The state of Michigan has also committed $300 million to the effort.
State Representative Joey Andrews, a supporter, tells us nuclear energy is becoming more relevant.
“There’s been a real change in the last couple of years as everybody’s, I think, recognizing that if we’re going to be serious about actually fighting climate change, nuclear has to be a cornerstone in any energy policy to achieve that goal,” Andrews said. “I think Biden obviously understands that with the funding they put in the NIRA and this loan program, the governor obviously tried to stop Palisades from being shut down originally. So, we know that she’s always been supportive here, and locally, we know what the plant can do for jobs and our local economy. So, it’s just a win win.”
While the Department of Energy has not made any official announcement about the Holtec loan, Andrews says what he’s been hearing in meetings lately is positive.
Holtec has secured a power purchasing agreement with Wolverine Power Cooperative once Palisades starts operating again, and the company has announced plans to construct two small modular reactors at the site. They will be in addition to the existing reactor.
The company hopes Palisades can be operating again by late 2025.
