Holtec to get $1.5bn loan to restart Palisades nuclear power plant in Michigan

Holtec International to secure a $1.5bn conditional loan from the US DOE to repower the 800MW Palisades nuclear power plant. (Credit: Saibo/Wikimedia Commons)

US-based energy technology company Holtec International is reportedly poised to secure a conditional loan of $1.5bn from the US Department of Energy (DOE) for restarting the 800MW Palisades nuclear power plant in Michigan, US.

The granting of the loan from the DOE’s Loan Programs Office (LPO) is expected to be announced later this month, reported Reuters, citing an undisclosed source familiar with the matter.

Located along the eastern shore of Lake Michigan in Covert Township, the Palisades nuclear facility is a single unit pressurised water reactor with other associated plant equipment, and related site facilities.

The American nuclear power plant was permanently shut down by Entergy in May 2022. In the following month, Holtec International purchased the Palisades plant in a move to safely and timely decommission the site.

However, in October 2023, Holtec International filed an application with the US Nuclear Regulatory Commission (NRC) to formally begin the process of federal re-authorisation for the restart of operations at the Palisades nuclear plant.

According to the energy technology company, the Palisades facility will become the first successfully restarted nuclear power plant in the US.

The Biden administration’s intent to provide the loan to the company was first reported by Bloomberg.

Holtec International spokesman Nick Culp, has been quoted by Bloomberg, as saying: “This is a historic opportunity for the country and Michigan.

“As we transition away from fossil fuels, nuclear is going to be a critical part of not only reaching our climate goals but doing so in a way that ensures the lights stay on.”

Last month, the DOE finalised the terms for $1.1bn in credit payments for the Diablo Canyon nuclear power plant in California under the Civil Nuclear Credit (CNC) programme by signing the credit award and payment agreement.

Source: NS Energy 

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About Stu Turley 3277 Articles
Stuart Turley is President and CEO of Sandstone Group, a top energy data, and finance consultancy working with companies all throughout the energy value chain. Sandstone helps both small and large-cap energy companies to develop customized applications and manage data workflows/integration throughout the entire business. With experience implementing enterprise networks, supercomputers, and cellular tower solutions, Sandstone has become a trusted source and advisor.   He is also the Executive Publisher of www.energynewsbeat.com, the best source for 24/7 energy news coverage, and is the Co-Host of the energy news video and Podcast Energy News Beat. Energy should be used to elevate humanity out of poverty. Let's use all forms of energy with the least impact on the environment while being sustainable without printing money. Stu is also a co-host on the 3 Podcasters Walk into A Bar podcast with David Blackmon, and Rey Trevino. Stuart is guided by over 30 years of business management experience, having successfully built and help sell multiple small and medium businesses while consulting for numerous Fortune 500 companies. He holds a B.A in Business Administration from Oklahoma State and an MBA from Oklahoma City University.