The Palisades nuclear plant in Michigan has closed a $1.5 billion loan to support the first reactor restart in U.S. history, the Department of Energy announced Monday.
Palisades’ owner, Holtec International, hopes to restart the plant in the fourth quarter of 2025, subject to approval by the U.S. Nuclear Regulatory Commission. Holtec is a privately held nuclear technology company headquartered in Jupiter, Florida.
“All necessary funding has now been secured,” said Nick Culp, a Holtec spokesperson. The company will use the funds for inspections, testing, restoration, rebuilding, replacement of equipment at the plant, according to the Department of Energy.
Holtec has completed all major licensing submittals to the NRC, Culp said. Company executives expect to receive a response from the NRC sometime in 2025, he said.
The restart of the reactor at Palisades would mark a milestone for the nuclear industry after a decadelong wave of reactor shutdowns in the U.S. Palisades ceased operations in 2022 as nuclear efforts struggled to compete with cheap and abundant natural gas.
Demand for nuclear power is growing as the U.S. seeks carbon-free energy to meet rising electricity demand while meeting its climate goals. The planned restart at Palisades blazed a path for Constellation Energy‘s recent decision to bring Three Mile Island back online by 2028.
“We’ve been using all of the tools in our tool belt to support the nuclear energy sector, keep reactors online, and to bring them back, and to finance advanced reactor deployment as well,” David Turk, deputy secretary at the Department of Energy, told reporters on a call ahead of the announcement.
Electricity demand is expected to increase about 15% over the next few years as artificial intelligence drives the need for data centers and domestic manufacturing continues expanding, Turk said.
Microsoft has agreed to purchase power from Three Mile Island to help power its data centers. In the case of Palisades, the power is spoken for by Wolverine Power Cooperative, a nonprofit that provides electricity to rural communities in Michigan.
Palisades will support 600 jobs in Covert Township near Lake Michigan and provide enough power for 800,000 homes, Turk said.
Holtec plans to nearly double the capacity of Palisades in the 2030s by building new designs called small modular reactors at the site. These smaller reactors, which are prefabricated in several pieces, promise to speed deployment of nuclear by reducing costs and making plants simpler to operate.