COVERT, MI — Nuclear power is getting a boost in Michigan, where federal officials announced major funding to support the reopening of a 1970s era plant that closed two years ago.
The U.S. Department of Energy approved a $1.52 billion loan to Holtec International, a New Jersey company that is attempting to reopen the Palisades nuclear power plant on the Lake Michigan shoreline in Van Buren County, which shut down in May 2022.
The federal loan will pay for necessary upgrades, uranium refueling and other costs, the agency announced Wednesday, March 27. If successfully restarted, Palisades would become the first U.S. nuclear plant to come back online after decommissioning began.
Jennifer Granholm, U.S. Energy Secretary and former Michigan governor, made the announcement at Palisades on Wednesday morning alongside current Gov. Gretchen Whitmer.
The pair toured a demonstration control room and were guided through a mock reactor shutdown before speaking to about 200 plant employees, local officials and other guests.
Granholm cast the funding and support for repowering Palisades as an effort to strengthen local economies during the national transition away from fossil fuels.
“I know what this means to this community,” Granholm said. “I know it means jobs. I know it means livelihood. I know it means identity. I know it means dignity. And I must say, the president knows this too.”
The former governor called the Palisades restart and increasing nuclear generation “critical” to meeting national climate goals.
“Even as we deploy more solar and wind and batteries, we’re going to need more, not less nuclear power, in the decades to come,” Granholm said. “By our estimates, to reach our net zero goals by 2050, we need to at least triple our nuclear energy supply.”
The federal funding comes on the heels of a new report from the Michigan Public Service Commission, which concluded on March 20 that, despite the expensive nature of the heavily regulated nuclear industry, more nuclear generation will be necessary for the state to meet its climate goals.
The state put $300 million toward the Palisades restart, contingent on the federal investment. The bipartisan support has grown among Democrats and some liberals because nuclear plants do not emit greenhouse gases, which are driving climate change.
Nuclear provides significant baseload energy in Michigan and was classified as a “clean” but not “renewable” source under a landmark 2023 state energy package. That legislation requires all state electricity to be from carbon-free sources by 2040.
Restarting Palisades is not an “if,” but “when,” said Whitmer.
“There’s no question that bringing this plant online not only can be done, we’re going to show the world how to get it done,” Whitmer told reporters. “It’s going to be able to provide a lot of clean energy for households all across Michigan and in out-of-state as well.
“This is going to be a globally watched undertaking, and we’re gonna show people how to get it done and achieve our goals,” she said.
Holtec, a nuclear design and fuel storage company, hopes to extend the life of Palisades through 2051 and return its 800 megawatts to the electrical grid. Long-term power purchase agreements are already in place with two rural electric cooperatives with customers in Michigan, Illinois, and Indiana.
The repowering plan must be approved by the Nuclear Regulatory Commission, which is considering multiple pending licensing requests for the project.
Extensive inspections and testing will be necessary before the plant could reopen. In the coming years, regulators are expected to require major refurbishment, rebuilding and replacement of existing equipment.
Company officials say they can’t upgrade the South Haven area nuclear plant and return it to service without the federal bridge loan. Holtec must meet various technical, legal, environmental and financial conditions before the federal government funds the loan.
Kelly Trice, president of nuclear engineering and decomissioning at Holtec, said the plant will be a “safe, clean reliable” energy source once “a couple little details” are worked out.
The Biden administration “moved the Earth to help us finance this deal,” Trice said.
Local business and government officials said the restart would be a welcomed economic boost. One said area residents are largely supportive of the plan to repower the nuclear plant.
The effort would bring about 600 jobs back to the area.
Covert Township Supervisor Daywi Cook said the plant wasn’t historically a contentious topic across the community during its decades of operation, but some protest began after Holtec announced the restart plans.
“Most of them were from out of town; some of them were from in town. Most of them were just generally anti-nuclear, some of them were pro-clean energy but didn’t want it in our backyard. So, it was a mixed bag. But generally speaking, I think it’s highly supported by the community,” Cook said.
Opponents do remain.
A handful of protestors stood outside the plant entrance Wednesday. Holtec security removed at least two from the press conference. One held a sign accusing the plant of causing cancer among neighbors.
Among those who object to the repowering is radioactive waste specialist Kevin Kamps with the advocacy group Beyond Nuclear, who likened the repowering to a game of Russian roulette.
“It’s an existentially bad idea for Michigan and for the Great Lakes, which is 21% of the entire planet’s surface freshwater supply,” Kamps said.
Environmental justice advocates and some who live near the Palisades plant have expressed worries about restarting the five-decades-old plant, largely because of embrittlement problems which can lead to damage in the reactor vessel. It happens to all nuclear reactors, but the issue is considered especially critical in reactors built before 1972, such as Palisades.
In addition to the repowering, Holtec intends to build a pair of 300-megawatt small, modular nuclear reactor units at the Palisades site in Covert Township.
Nuclear fission generates no carbon dioxide, the primary greenhouse gas that causes global warming – although fossil fuels are used in mining and refining uranium ore for reactors.
Radioactive waste can remain dangerous for centuries and must be stored in protective casks where the fuel was used until a national repository is developed by the federal government.
Related articles:
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$1.5 billion federal loan on tap for Palisades restart
Two more small reactors to be added to Palisades
Granholm ‘hopeful’ about loans to restart Palisades
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