Biden poised to approve $1.5B loan to reopen Palisades nuclear plant in Michigan
The nuclear plant shut down in May 2022, after more than 40 years of commercial operation.
The Palisades nuclear power plant in Covert, Mich., was sold to Holtec Decommissioning International in June 2022, a month after it was shut down.
The federal government is expected to approve a $1.5 billion loan to restart the Palisades Nuclear Power Plant in southwest Michigan, according to a report from Bloomberg News.
Nick Culp, a spokesman for Holtec International — the plant’s owner — says the approval is still in process, adding that the company is “very optimistic about the federal loan process and confident that based on the strength of our application and the importance of the project that we hope to hear something very favorable soon.”
But the news is not all good for Holtec this week. The New Jersey Attorney General’s Office says the company will pay $5 million in penalties to avoid criminal prosecution after an investigation into its tax credit applications. Holtec must also use a state-approved independent reviewer for state benefits applications for up to three years.
Holtec says it “denies engaging in any misconduct.”
The Palisades plant shut down due to financial reasons in May 2022, after more than 40 years of commercial operation. Holtec purchased the 800-megawatt power plant in June of 2022, and in early 2023 the company expressed an interest in returning the plant to an operational status.
Culp says the plant will play a vital role in hitting state and federal clean energy goals.
“Palisades and nuclear power plants like it are essential to achieving those target goals, while also making sure that we have a reliable electricity that all of us depend on,” he said.
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