The US Department of Energy (DOE) has announced the release of a third loan disbursement to Holtec, aimed at reopening the Palisades Nuclear Plant in Michigan. This latest disbursement allocates $46.7m from an overall loan guarantee of up to $1.52bn.
The DOE’s loan guarantee was initially announced in September 2024 during the previous Biden administration. The first and second disbursements were completed in January 2025 and March 2025, respectively. Overall, more than $151m of the loan guarantee has been disbursed.
US Secretary of Energy Chris Wright said: “In advancing President Trump’s commitment to meet our growing demand for affordable, reliable and secure electricity, America needs to utilise all forms of energy that grow our economy, create new jobs, and secure energy independence.
“With projects like the Palisades Nuclear Plant, the Energy Department is working to ensure America’s nuclear renaissance is just around the corner.”
The 800MW Palisades facility, originally shut down in May 2022 for decommissioning, was acquired by Holtec in June 2022. Subsequently, Holtec filed with the US Nuclear Regulatory Commission (NRC) in October 2023 to commence the process of federal reauthorisation for power operations.
It is set to become the first commercial nuclear reactor in the country to restart operations after being previously shut down, pending NRC licencing approvals.
The plant’s revival is expected to significantly boost Michigan’s carbon-free energy output, enhance grid reliability, and reduce dependence on energy imports. The project is anticipated to create over 600 direct jobs and generate more than $500m in secondary economic activity in the region.
