The U.S. Department of Energy has agreed to provide a loan of up to $1.9 billion to assist NextEra Energy in restarting the Duane Arnold nuclear power plant in Linn County, Iowa. The facility, which ceased operations in 2020, is expected to resume generating electricity by spring 2029, pending regulatory approval from the Nuclear Regulatory Commission.
NextEra, one of the largest power companies in the country, announced plans last year to refurbish the plant's reactor. The move is part of a broader effort to revive nuclear energy in the United States, with significant interest from technology firms; for example, Google has committed to purchasing a portion of the plant’s output to power its artificial intelligence data centers. NextEra’s CEO, John Ketchum, highlighted that the restart would bolster the regional grid, create hundreds of jobs, and help manage growth-related costs for residents and businesses in Iowa.
This loan follows similar federal financial support for other projects aimed at reopening previously retired nuclear reactors. Holtec International is working to restart the Palisades nuclear plant in Michigan with a $1.52 billion loan from the Biden administration, although delays have occurred due to unexpected equipment degradation. Additionally, Constellation Energy is pursuing a restart of a reactor at the Three Mile Island plant in Pennsylvania, supported by a $1 billion loan from the Trump administration, with plans to supply electricity to Microsoft’s AI data centers.
The Duane Arnold plant, which began operation in 1974, was shut down after one of its cooling towers was damaged during a storm, and its owners initially deemed repairs economically unfeasible amid competition from cheap natural gas and stagnant electricity demand. Since then, interest in nuclear power has resurged, partly driven by its low carbon emissions and potential role in combating climate change. Congress has introduced subsidies aimed at preserving existing nuclear infrastructure and promoting new projects.
The Energy Department’s loan office under the Trump administration has shifted its lending priorities towards established utilities and large energy companies working on conventional energy projects, including nuclear reactors, natural gas plants, battery storage, and transmission lines. This contrasts with the earlier focus during the Biden administration, which emphasized funding innovative technologies with higher risk profiles. While loans to large companies are generally seen as lower risk and more likely to be repaid, some critics argue that these financial supports may subsidize projects that would proceed without federal assistance.
The Duane Arnold plant is one of only a few U.S. reactors with the potential for reopening; many other retired plants have advanced too far in the decommissioning process to be revived. Restarting a mothballed nuclear plant involves extensive inspections and replacements of corroded or outdated components, making regulatory approvals and technical challenges significant hurdles to overcome. Nonetheless, proponents view the project as a step toward strengthening the country’s energy security and positioning nuclear power as part of a diversified, low-emission energy future.