DOE Releases $56.8 Million Loan for Palisades Nuclear Plant Restart

The U.S. Department of Energy (DOE) announced last week that it had released $56,787,300 from its Loan Programs Office (LPO) to Holtec International to restart the Palisades Nuclear Plant in Covert Township, Michigan.

This is the second disbursement from an up to $1.52 billion loan guarantee to revive the facility, providing the region with 800 megawatts (MW) of power.

After half a century of powering Southwest Michigan, the Palisades plant was shut down in 2022. In 2023, Holtec, the plant owner, filed a request to restart the plant with the U.S. Nuclear Regulatory Commission and for funding with the Department of Energy. 

An undated image of Palisades Nuclear Plant in Covert Township, Michigan. Image: Holtec

Energy Secretary Chris Wright, in a statement, emphasized the significance of nuclear energy in bolstering domestic energy production and lowering costs for Americans.

The Secretary said, “Unleashing American energy dominance will require leveraging all energy sources that are affordable, reliable, and secure, including nuclear energy.”

The Palisades project aligns with President Trump’s agenda to enhance domestic energy production and security while supporting American jobs.

The Electrification of the Economy

The electrification of the economy is addressed in the ConstructConnect 2025 Construction Outlook, where Chief Economist Michael Guckes writes that trends “will continue to drive significant demand for power generation and power infrastructure projects.”

Guckes said, “The growth of artificial intelligence, the increasing adoption of electric vehicles, and the growing reliance on electric appliances and devices will further stimulate the need for electric generation and infrastructure construction in the coming years.”

First Commercial Nuclear Reactor in the U.S. to Restart

Holtec said in a statement that the Palisades Nuclear Plant is set to become the first commercial nuclear reactor in the U.S. to restart after ceasing operations. The restart is expected to “support employment opportunities for the region’s skilled craftspeople” in Michigan.

The DOE said the financial milestone follows an initial disbursement in January and underscores the commitment to advancing nuclear energy.

Goals and Plans 

Holtec’s efforts contribute to Michigan’s economy and clean energy goals. The plant is projected to avoid 4.47 million tons of CO2 emissions annually, Holtec said, totaling 111 million tons over 25 years. Additionally, the company announced plans last month to expand the facility by installing advanced small modular reactors (SMRs) with a 2030 target.