US Department of Energy (DOE) Secretary Chris Wright has announced the release of the third loan disbursement to Holtec for the reopening of the Palisades NPP. This releases $46,709,358 of the up to $1.52bn loan guarantee to Holtec for Palisades, which will provide 800 MWe of reliable baseload power in Michigan when completed. The Palisades NPP will be the first restart of a commercial US NPP that had ceased operations, subject Nuclear Regulatory Commission (NRC) licensing approvals.
“In advancing President Trump’s commitment to meet our growing demand for affordable, reliable and secure electricity, America needs to utilise all forms of energy that grow our economy, create new jobs, and secure energy independence,” said Secretary Wright. “With projects like the Palisades Nuclear Plant, the Energy Department is working to ensure America’s nuclear renaissance is just around the corner.”
This disbursement marks Holtec’s third disbursement of funds from the Loan Programs Office (LPO) since the announcement of its financial loan close in September 2024. A second disbursement of $56,787,300 was announced in March.
The single-unit 800 MWe pressurised water reactor began commercial operation in 1971. Operator Entergy announced in 2016 plans to close the plant. In 2021 the US Nuclear Regulatory Commission (NRC) approved transfer of the licence from Entergy to Holtec in preparation for its decommissioning.
The reactor was removed from service by Entergy in May 2022, and defueled, and its sale to Holtec completed in June 2022. However, Holtec then announced that it was applying for federal funding to allow restart of the plant. In April, DOE through its Loan Programs Office (LPO) announced the offer of a conditional commitment of up to $1.52bn as a loan guarantee to restart the plant, which was subsequently confirmed.
