Department of Energy invests in nuclear energy at Palisades Nuclear Plant

The Biden Harris Administration, through the U.S. Department of Energy (DOE) and U.S. Department of Agriculture (USDA), announced more than $2.8 billion to support reliable, affordable, and clean power in the Midwest. 

Through its Loan Programs Office (LPO) it announced the closing of a loan guarantee of up to $1.52 billion under the Inflation Reduction Act’s Energy Infrastructure Reinvestment (EIR) program to Holtec Palisades to help finance the restoration and resumption of service of an 800-MW nuclear generating station in Covert Township, Michigan. 

The USDA also announced more than $1.3 billion in Empowering Rural America (New ERA) program awards for two rural electric cooperatives, Wolverine Power Cooperative and Hoosier Energy to reduce the cost of electricity.

“This project will bring a retired nuclear power plant back to life for the first time in American history and deliver reliable, affordable clean power to rural areas in Michigan, Wisconsin, Indiana and Illinois—showing how the Inflation Reduction Act is revitalizing communities across the Midwest,” said John Podesta, Senior Advisor to the President for International Climate Policy.

The Palisades Nuclear Plant, which ceased operations in May 2022, will be brought back online and upgraded to produce clean baseload power until at least 2051. 

The restart of Holtec Palisades is projected to create or retain up to 600 high-quality jobs in Michigan with many of them filled by workers who have been at the plant for more than 20 years with approximately 45% of the workforce at the site being good-paying union labor upon
restart.