Nuclear facility in Michigan, previously idled, set for revival – an unprecedented move in American context

The Palisades Nuclear Power Plant, which has been offline since May 2022, is on the brink of a comeback. Holtec International, the plant's new operator, expects to bring it back online before the end of the year.

The U.S. Nuclear Regulatory Commission (NRC) has given several key approvals for Holtec to restart the 800-megawatt Palisades Nuclear Plant. This decision signals the NRC's intention to give Holtec the full go-ahead for the restart.

Holtec International purchased the Palisades plant in June 2022 and made a surprising revelation that it intended to revive the plant instead of decommissioning it. The company can now reinstall uranium fuel in the reactor as soon as August and begin the work of restarting the complex nuclear facility.

The Palisades plant, America's eighth-oldest nuclear plant at the time of its closing, has a troubled history of temporary shutdowns due to equipment failures. However, Holtec's efforts could mark a new chapter for the plant.

Notoriously expensive nuclear reactors can now claim a bundle of incentives and subsidies, which Holtec International will be able to take advantage of. This financial support was received by Holtec for the restoration operations of the Palisades Nuclear Power Plant.

The revival of the Palisades plant comes at a time when nuclear power is viewed as crucial for meeting the soaring electricity demand driven by an AI-spurred data-center frenzy, electrification of transportation, and industry. Tech giants in particular are seeking the clean, firm, 24/7 power that nuclear plants provide for their data centers.

The U.S., along with more than 20 other countries, pledged to triple nuclear power capacity by 2050 during the COP28 global climate conference in 2023. Both the Biden and Trump administrations have shown a commitment to bolstering nuclear power. The Trump administration's executive orders on nuclear power sped up the licensing process and minimized regulatory burdens to foster American "energy dominance." The Biden administration initiated the atomic energy rally, and the Trump administration is maintaining its momentum.

Other nuclear plants in the U.S. are also being considered for reopening. The Three Mile Island Unit 1 in Pennsylvania is being considered for reopening by 2028, as part of a U.S. strategy to revitalize its nuclear industry. The Duane Arnold Energy Center in Iowa is being weighed for reanimation, with NextEra Energy considering the restart of the 50-year-old reactor that was closed in 2020.

With about 600 full-time workers currently employed at the Palisades plant, the restart could provide a significant boost to local employment. If successful, Palisades would be the first nuclear plant in the U.S. to restart after being closed down, marking a significant milestone in the revitalization of the U.S. nuclear industry.

Nuclear facility in Michigan, previously idled, set for revival – an unprecedented move in American context