Biden administration announces $1.5 billion loan for first reopening of a closed nuclear plant

On Wednesday, the Biden administration declared plans to restart a nuclear power facility in Michigan with a $1.5 billion loan.

With the help of the loan, which was made possible by money from the Inflation Reduction Act and the Energy Department’s Loan Program Office, Holtec will be able to reopen the Palisades Nuclear Plant in Covert Township. Should the restoration be authorized by the Nuclear Regulatory Commission, it would mark the first time that a closed nuclear reactor in the United States is recommissioned.

Biden administration announces $1.5 billion loan for first reopening of a closed nuclear plant

The facility was purchased by a utility company in Louisiana in 2007 and ran from about 1977 to 2022. The Energy Department forecasts that the 800-megawatt Palisades facility will continue to generate electricity until at least 2051 when it is brought back online. In addition, the state Legislature has set aside $150 million toward the facility’s reopening. The goal of a late 2025 restart has been set by the administration and the state of Michigan.

The former governor of Michigan and Energy Secretary Jennifer Granholm said in a statement that “nuclear power is our single largest source of carbon free electricity, directly supporting 100,000 jobs across the country and hundreds of thousands more indirectly.” “With major funding for the Holtec Palisades nuclear power plant, President Biden’s Investing in America agenda is supporting and growing this vibrant clean energy workforce here in Michigan.”

Governor Gretchen Whitmer (D) of Michigan said in a statement that “Once open, Palisades will be the first successfully restarted nuclear power plant in American history, driving $363 million of regional economic impact and helping Michigan lead the future of clean energy.” “I really appreciate the cooperation of my bipartisan allies in the Michigan Legislature, the Biden-Harris Administration, Holtec, and labor in completing this task. Together, we are demonstrating to the world that hardworking people in Michigan make history.

By 2035, the Biden administration wants to have a completely renewable power grid. Despite producing almost no carbon emissions, nuclear power lost popularity in the United States in the late 20th century due to fears about possible mishaps, especially following the 1979 Three Mile Island accident.

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