The U.S. Department of Energy has announced that it has released $57 million from a total loan guarantee of $1.52 billion for Holtec’s Palisades nuclear plant in Michigan. This funding is part of a broader initiative by the Biden administration to promote nuclear energy, which is seen as a clean power source that can help combat climate change and meet the growing demand for electricity from technologies like artificial intelligence and electric vehicles.
This marks the second round of funding from the conditional loan guarantee that was finalized last year. Energy Secretary Chris Wright emphasized that this step aligns with efforts to enhance domestic energy production and reduce costs for Americans.
The Palisades reactor, which has been offline since 2022, was closed by Entergy after more than 50 years of operation. The shutdown occurred two weeks earlier than planned due to a control rod issue, even as a $6 billion federal initiative aimed to assist nuclear plants facing financial challenges was in place.
Holtec aims to restart the Palisades plant later this year. However, the company still requires permits from the Nuclear Regulatory Commission. Currently, Holtec is working on repairing steam generators at the plant, as proper maintenance procedures were not followed before the shutdown.
The effort to restart Palisades reflects a significant push to revitalize nuclear energy in the U.S., which is seen as crucial for achieving a sustainable energy future.