The federal government will provide a $1.5 billion loan to help restart an 800MW nuclear power plant in southwestern Michigan.

The Palisades plant would be the first nuclear power plant to be reopened in the US. The loan is conditional on the facility receiving regulatory approvals and other requirements.

The Department of Energy loan would go to Holtec International, which acquired the power plant in 2022 with a plan to dismantle it. The plant in Covert Township shut down that year but, if revived, would run until at least 2051.

“Nuclear power is our single largest source of carbon-free electricity, directly supporting 100,000 jobs across the country and hundreds of thousands more indirectly,” said Energy Secretary Jennifer Granholm, the former governor of Michigan.

“President Biden’s Investing in America agenda is supporting and expanding this vibrant clean energy workforce here in Michigan with significant funding for the Holtec Palisades nuclear power plant.”

The state Legislature has allocated an additional $150 million to recommission the facility, with a target restart of late 2025.