HOLTEC PALISADES

PROJECT SUMMARY

In September 2024, the Department of Energy announced the closing of a $1.52 billion loan guarantee to Holtec Palisades, LLC (Holtec Palisades) to help finance the restoration and resumption of service of an 800-MW nuclear generating station in Covert Township, Michigan. The Palisades Nuclear Plant, which ceased operations in May 2022, will be brought back online and upgraded to produce clean baseload power until at least 2051, subject to U.S. Nuclear Regulatory Commission (NRC) licensing approvals. Once complete, this project will be the first recommissioning of a retired nuclear power plant in the U.S. history.

TECHNOLOGY INNOVATION

Once operational, the Palisades Nuclear Plant will provide clean firm generation: around-the-clock, zero-emissions electricity—a vital addition to Midcontinent Independent System Operator’s (MISO) resource mix as coal plants are retired. In addition to the main 800-MW reactor, Holtec intends to use the Palisades site as the location for its first two small modular reactor units, which will not be part of the project that may be financed under this conditional commitment. The two units will potentially add an additional 600 MW of generation capacity at the site, take advantage of existing infrastructure, and spur the domestic development of new reactor technologies, which is critical to combatting the climate crisis.

ECONOMIC IMPACT

The project is projected to support or retain up to 600 high-quality jobs in Michigan—many of them filled by workers who have been at the plant for more than 20 years. The loan guarantee will also support more than 1,000 jobs during the facility’s regularly scheduled refueling and maintenance periods every 18 months.

CLIMATE BENEFIT

The plant restart is anticipated to avoid 4.47 million tonnes of CO2 emissions per year for a total of 111 million tonnes of CO2 emissions during the projected 25 years of operations—an amount roughly equivalent to the annual emissions of removing more than 970,000 gasoline-powered cars from the road.

COMMUNITY BENEFIT

Upon restart, approximately 45% of the workforce at the site will be union members, represented by the Utility Workers Union of America (UWUA) and the United Government Security Officers of America (UGSOA). Palisades wages are significantly higher than the area’s median household income. Holtec has successfully executed a project labor agreement with 15 trade unions that are supporting the project, reinforcing the company’s commitment to collaboration with unionized labor, fair labor practices, and the highest standards of quality and safety.

The Palisades Nuclear Plant is also located in a disadvantaged community; residents face higher energy costs than 97% of communities in the United States. Holtec is working with Lake Michigan College (LMC) and other area educational institutions to create skills-based certification programs to support future labor needs and the creation of a talent pipeline.

* Last Updated September 2024. Approximate amount of the loan approved at closing including principal and any capitalized interest.

** Estimated at the time of closing

RELATED PROJECT LINKS

• Biden-Harris Administration Bringing Back Clean Nuclear Energy, Creating Clean Energy Union Jobs Across the Midwest
• LPO Announces Conditional Commitment to Holtec Palisades to Finance the Restoration and Resumption of Service of 800-MW Nuclear Generating Station | Department of Energy