The U.S. Department of Energy (DOE) has released its sixth loan disbursement to Holtec International for the restart of the Palisades Nuclear Plant in Michigan. The latest funding installment amounts to $155,944,659, as part of a loan guarantee that could total up to $1.52 billion. This financial support is intended to help bring the Palisades facility back online, marking what would be the first time a commercial nuclear reactor in decommissioning status is restarted in the United States, pending approvals from the U.S. Nuclear Regulatory Commission (NRC).
Secretary Chris Wright commented on the announcement, stating: “Under President Trump’s bold leadership, the United States is taking unprecedented steps to bring about the next American nuclear renaissance. With projects like the Palisades Nuclear Plant, the Department of Energy is committed to lowering energy costs and increasing domestic energy production, delivering reliable, affordable and secure energy to the American people.”
Since September 2024, when DOE finalized its loan agreement with Holtec, a total of $491,056,853 has been distributed through six disbursements from DOE’s Loan Programs Office (LPO). These funds have supported progress toward restarting operations at Palisades. Recent developments include NRC’s issuance of a final environmental assessment and finding of no significant impact for the project. Additionally, NRC has approved several licensing and regulatory actions necessary for transitioning Palisades from decommissioned status back to operational status.
Once fully restarted and operating at capacity, Palisades is expected to generate 800 megawatts of baseload electricity. This output will contribute additional reliable power supply for Michigan’s grid.
The DOE states that today’s action supports Executive Order 14302—Reinvigorating the Nuclear Industrial Base—which aims to revitalize domestic nuclear energy capabilities. The department reiterated its commitment to using all available tools such as LPO financing in support of projects that bolster baseload generation and grid reliability while seeking to lower costs for consumers.
