García reported on November 1st 2024 that the NPP was opened for the first time on New Year’s Eve of 1971, the Palisades Nuclear Power Plant in Michigan but went offline May 20, 2022 for what was thought to be the final time. However, the very company that received the license to decommission the facility now plans to have it reopened by next year’s end.
The Palisades Nuclear Power Plant Credits: Enercon
The Palisades shutdown: Holtec International’s initial commitments
The Palisades Nuclear Power Plant operated under Entergy for many years before the utility announced the facility’s then-impending shutdown in 2017. Entergy had acquired Palisades from CMS Energy in 2007. According to a 2022 news release, the closing of Palisades concluded Entergy’s strategy to “exit the merchant power generation business.” It also coincided with the expiration of the company’s 15-year purchase agreement with Consumers Energy.
Palisades officially closed its doors in 2022, after over 50 years of commercial operation. Former site Vice President Darrell Corbin ended the event on a proud and positive note:
“The enduring legacy of Palisades is the thousands of men and women who safely, reliably, and securely operated the plant, helping power Southwest Michigan homes and businesses for more than 50 years,” he said.
By then, the US Nuclear Regulatory Commission (NRC) had approved the request to transfer Entergy’s lisense to Holtec to decommission Palisades. As part of Holtec’s purchase agreement with Entergy, Holtec agreed to hire approximately 260 Palisades employees for the first phase of decommissioning.
Holtec’s filings with the NRC also detailed its plans to safely dismantle, decontaminate, and remediate Palisades by NRC standards by 2041. However, news broke in January this year that Holtec filed for a $1.5bn loan from the US Department of Energy (DOE) to reopen Palisades.
The first in US history: A recommissioned power plant, with long-term benefits
When Holtec’s plans to put the Palisades reactor back online, it was said the energy company was optimistic about securing the $1.5bn loan from the DOE’s Loan Program Office (LPO). As it is conditional, Holtec had to meet several technical, legal, environmental, and financial conditions before the loan was approved. With a green light, Palisades would become the first power plant to be recommissioned in US history.
And, in line with the Biden Administration’s goal to decarbonize the country’s power grid by 2035 and the entire economy by 2050, a re-started Palisades would avoid 4.47 million tonnes of CO2 emissions.
In its projected 25 years of operation, that would amount to approximately 111 million tonnes. Additionally, the reopening of the plant would create over 600 jobs, with about 45% of the workforce coming from union labor.
Holtec bags $1.5bn loan to restart the 800-megawatt facility
The DOE closed the loan at the end of September, giving Holtec the go-ahead to work on getting Palisades back online. Holtec had predicted the plant would be operational by the fourth quarter of 2025. However, the Biden administration says it could take two years to reopen the facility, as it still needs licensing from regulators. Still, securing this loan is a win, as White House climate adviser Ali Zaidi told reporters, “Palisades is a climate comeback story.”
It’s worth noting that the reopening of the station responds to the mounting demand for more power, with the advent and growth of artificial intelligence, rising production in electrical vehicles, and cryptocurrency.
There is also growing concern about climate change as turning to renewable energy sources becomes more imperative by the day. Nuclear reactors are said to generate virtually emissions-free power, making them a valuable clean energy alternative. Therefore, it appears the reopening of Palisades was perfectly timed.
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