The Palisades Nuclear Plant in Covert Township, Michigan, is poised for a groundbreaking revival, thanks to $2.8bn funding from the US Government.
The Department of Energy (DOE) and Department of Agriculture (USDA) are spearheading this effort to ensure reliable, affordable, and clean energy for the Midwest. The project will bring the Palisades Nuclear Plant back online, marking the first recommissioning of a decommissioned nuclear facility in US history.
A key component of this initiative is a $1.52bn loan guarantee provided by the DOE’s Loan Programs Office under the Inflation Reduction Act’s Energy Infrastructure Reinvestment (EIR) program.
This funding will support the restoration of the Palisades Nuclear Plant, which has been offline since May 2022.
Once operational, the 800-MW plant will produce clean, carbon-free energy for decades, reinforcing the nation’s commitment to the nuclear energy sector and the broader goal of reducing greenhouse gas emissions.
With the plant’s anticipated operational extension until 2051, subject to approval from the Nuclear Regulatory Commission (NRC), the Palisades facility will help meet America’s growing energy demands while reducing its reliance on fossil fuels.
White House National Climate Advisor Ali Zaidi commented: “From day one, President Biden and Vice President Harris have taken historic steps to keep existing nuclear plants from shutting down, restart previously shuttered nuclear plants, and bring new reactors online.
“The results are visible across the country – more clean power and more union jobs. It’s a powerful clean energy comeback story that represents a chance to build our manufacturing capacity and rebuild our middle class.
“This announcement – which will catalyse the first recommissioning of a nuclear power plant in US history – creates hundreds of long-term union jobs, supports workforce development, and feeds our nation’s energy demand while reducing emissions.”
Investment in rural clean energy
In conjunction with the DOE’s efforts, the USDA has allocated over $1.3bn through the Empowering Rural America (New ERA) program to enhance rural energy infrastructure.
Wolverine Power Cooperative and Hoosier Energy, two rural electric cooperatives, will benefit from this funding, using clean energy from the Palisades Nuclear Plant to lower electricity costs for rural communities in Michigan, Illinois, and Indiana.
Wolverine Power Cooperative will receive more than $650m in New ERA financing, while Hoosier Energy will gain over $675m.
These funds will support the purchase of carbon-free energy from Palisades and other clean energy sources, contributing to lower energy costs and a reduction in carbon emissions for their customers.
The investment is expected to save Hoosier Energy members around $35m annually while also supporting job creation and community programmes.
The Palisades Nuclear Plant will boost job creation
The recommissioning of the Palisades Nuclear Plant will create or sustain up to 600 high-quality jobs in Michigan, many of which will be union positions.
An additional 1,000 jobs will be supported during routine maintenance and refuelling cycles every 18 months.
From an environmental perspective, the Palisades plant’s restart is projected to eliminate 4.47 million metric tonnes of greenhouse gas emissions annually, equivalent to the yearly emissions of about 882,000 homes.
Over the next 25 years, this will prevent approximately 111 million metric tonnes of emissions, making a significant impact in the fight against climate change.
The Palisades Nuclear Plant will play a crucial role in the Midcontinent Independent System Operator’s (MISO) energy mix, particularly as coal plants are phased out.
With long-term power agreements already in place, Wolverine Power Cooperative and Hoosier Energy are on track to provide 100% carbon-free energy by 2030, enabling rural communities to transition to cleaner energy sources and lower their carbon footprints.
The investment will pass savings directly to rural households and businesses, helping to keep electricity costs low while improving energy efficiency and supporting local communities through various programmes.
The revival of the Palisades Nuclear Plant marks a major milestone in America’s clean energy journey, supporting both the nation’s climate goals and economic growth.
