The Palisades Nuclear Power Plant in Covert, Michigan, is undergoing a rare attempt to restart operations after being shut down in 2022. The facility, located on the shores of Lake Michigan and originally opened in 1971, was acquired by Holtec International, a company with a background in nuclear storage and dismantling but no prior experience operating a nuclear power plant. Holtec initially estimated the process of bringing Palisades back online would take about two years and cost over $1.9 billion, including contingency funds.
Holtec’s decision to pursue the restart quickly after purchase drew scrutiny, as the company did not perform a comprehensive inspection prior to beginning work. According to Jeff Borah, general manager of plant operations, this approach led to unexpected setbacks, such as discovering extensive corrosion in key components used to generate high-pressure steam, requiring costly repairs. Some technical challenges, like the need to disassemble and assess the turbine, were only revealed during the refurbishment process. Additional difficulties included supply chain delays, leaking underground water lines, and the replacement of valves.
The project, now delayed beyond its original timeline, aims to load nuclear fuel by September 2024 and resume electricity generation by the end of the year, with a contractual deadline for restart set in March 2027. Holtec has secured commitments from two electric cooperatives to purchase power from the plant under 28-year fixed-price contracts, supported by approximately $300 million in state funds and federal tax credits. Furthermore, the U.S. Department of Agriculture provided $1.3 billion in loans to the cooperatives to facilitate the deal. However, Holtec declined to provide updated estimates on the overall cost or confirm if the schedule remains on track, emphasizing that the project complies with regulatory deadlines.
The effort to revive Palisades is part of a broader national push to expand nuclear energy, which enjoys increasing bipartisan support amid concerns over climate change and energy security. The Biden administration and its predecessor have both promoted federal financing packages aimed at revitalizing the sector, including a June 2023 initiative offering $17.5 billion in subsidized loans to support new reactor construction and restarts of existing facilities.
Other energy companies have followed Holtec’s lead, announcing plans to restart reactors in Pennsylvania and Iowa that were previously slated for permanent closure, signaling growing industry interest despite continued challenges. In contrast to Holtec, these companies typically own and operate their plants long-term, a factor cited in smoother project progress.
Public reaction near Palisades is mixed. Some local residents express cautious optimism about the plant’s return, recognizing nuclear power’s low carbon emissions and potential contribution to grid stability. Others, including some who identify as pro-nuclear, voice concerns over safety, the plant’s age, and whether sufficient taxpayer funds are being invested in a facility that requires substantial refurbishment. A recent study from Harvard’s public health school citing higher cancer mortality rates near some nuclear plants has contributed to apprehension, though regulators maintain that radiation doses from operating reactors remain well below levels associated with health risks.
Overall, Palisades’ restart underscores both the complexities and potential of extending the life of existing nuclear infrastructure in the United States, an endeavor shaped by regulatory, financial, operational, and community considerations. Holtec envisions using Palisades as a foundation for developing smaller, next-generation reactors, positioning the company within a revived national and international landscape for nuclear energy.