Holtec Nuclear Corporation has begun loading nuclear fuel into the reactor vessel of the Palisades NPP in Covert, Michigan, marking a historic milestone as the first shuttered US NPP begins its step-by-step return to active power generation. The reactor core comprises 204 fuel assemblies, including new fuel and partially used fuel from the plant’s most recent operating cycles. This milestone follows more than two years of extensive inspection, maintenance, refurbishment, testing, and equipment upgrades across the station to ensure utmost reliability and resiliency for long-term operation.
Palisades, an 800 MWe single-unit pressurised water reactor, ceased operations in May 2022 and was defueled the following month, despite being licensed to operate until March 2031. The unit’s licence was transferred from operator Entergy Nuclear Operations to Holtec Decommissioning International and Holtec Palisades for decommissioning. However, in late 2023, Holtec began the process of obtaining licensing approvals to return the plant to operational status for the remainder of its licensing term.
In September 2024, the Department of Energy (DOE) finalised a $1.52bn loan guarantee to financially anchor the restoration efforts. In August 2025 the Nuclear Regulatory Commission (NRC) reinstated the site’s status from “decommissioning” back to an “operational status” licence, legally allowing the plant to receive fuel. Fresh nuclear fuel assemblies were subsequently delivered to the site and prepared for core loading. Holtec notified NRC in 2024 that it intends to apply for a second, or subsequent, licence renewal for the plant. This would extend the plant’s operating period by a further 20 years, to 2051.
Major work completed during the restart effort included extensive reinforcement of tubes in the two steam generators; removal of accumulated corrosive species from their steam generation space; replacement of the plant’s control rod drive mechanism nozzles; chemical decontamination and passivation of the primary system; reactor vessel inspections; and numerous equipment upgrades and modernization projects. In several areas, the scope of planned work was expanded to further enhance the plant’s long-term reliability.
Following the fuel loading, Palisades will progress through a series of required testing, inspections, and startup activities as plant systems are declared fit for operation. These activities are being led by Holtec International Chief Nuclear Officer Fadi Diya, Site Vice President Mike Schultheis, Plant General Manager Adam Eastridge, and the site’s leadership team, with independent oversight from the Palisades Nuclear Safety Review Board, chaired by industry veteran Michael Rencheck.
“Loading fuel into the Palisades reactor is an important milestone and a reflection of the tremendous effort of the men and women who have brought this plant to this point,” said Diya. “We remain focused on disciplined execution of the remaining work and returning Palisades to safe and reliable operation.”
The reincarnation of Palisades as an operating plant was made possible by the DOE loan, critical financial support from the State of Michigan and long-term power purchase agreements (PPAs) with Wolverine Power Cooperative and Hoosier Energy.
While the $1.52bn loan guarantee from the DOE Loan Programs Office was closed in September 2024, the funds were distributed in a series of performance-based tranches to match refurbishment progress. The funds were released steadily as milestones were cleared. Significant tranches were released throughout 2025 in January ($38m), March ($56.8m), April ($46.7m), June ($100.5m) and August ($83.2m).
The State of Michigan’s financial commitment has been a foundational pillar of the project, totalling $300m in direct state funding allocated across successive state budgets. The financial support was rolled out in two major phases. The initial $150m in 2024 acted as a crucial catalyst. It signalled to the federal government and commercial partners that the state was fully committed to the repowering effort, effectively clearing the path to unlock $1.52 billion federal loan guarantee. An additional $150m was committed by the state to match expanding refurbishment and safety inspection costs as the engineering phase intensified.
The Wolverine Power Cooperative Agreement signed in September 2023 established a long-term PPA where Wolverine committed to purchasing up to two-thirds of the electricity generated by the plant. While Wolverine serves as the primary signatory for the PPA, Hoosier Energy is the critical non-profit project partner that ensures 100% of the plant’s output is used. Wolverine purchases up to two-thirds of the 805 MWe output for its member cooperatives in Michigan. Hoosier Energy purchases the remaining one-third balance to power its rural cooperative members across Indiana and Illinois.
Holtec’s long-term vision involves transforming the Palisades site into a hub for next-generation nuclear energy using their proprietary SMR-300 small modular reactors (SMRs). Holtec intends to build two units at the site. The original Wolverine/Hoosier agreement includes a contract expansion provision. This legally locks in the cooperatives to buy the power generated by the two future SMRs as soon as they are commissioned.
