First nuclear reactor restart in US history secures $1.5B in federal funding

The Palisades nuclear power plant in Michigan is set to become the first reactor in the U.S. to restart after being decommissioned. To support this effort, the federal government finalized an over $1.5 billion loan for the project, which is part of a broader strategy to address the country’s growing energy needs while pursuing climate goals.

The Palisades reactor, which was shut down in 2022 due to financial difficulties, has now secured funding from the Biden administration to resume operations. Holtec International, the plant’s current owner, announced that it has obtained all necessary financing to bring the facility back online. The anticipated restart date is set for the fourth quarter of 2025, pending approval from the U.S. Nuclear Regulatory Commission.

Once operational, the Palisades plant will generate enough electricity to power more than 800,000 homes. Holtec also plans to expand the site in the 2030s by introducing small modular reactors (SMRs), which could nearly double the plant’s energy output.

This nuclear restart, an endeavor never before attempted in the U.S., comes amidst a series of plant shutdowns across the country. Since 2012, there have been 19 U.S. nuclear facilities that either closed or were slated for retirement in the coming years. However, with the nation’s electricity demand expected to rise by 15% in the near future, the federal government is turning back to nuclear energy as a reliable source to meet increasing energy needs while reducing carbon emissions.

In addition to the Palisades restart, the revitalization of the facility has set the stage for the planned reopening of the Three Mile Island nuclear plant in Pennsylvania, which is scheduled to resume operations in 2028.