Holtec International has received more than $83m from the US Department of Energy (DoE) as part of a conditional loan guarantee up to $1.52bn, towards restarting the Palisades nuclear plant in Michigan, as reported by Reuters.
This development potentially positions the facility as America’s first commercial nuclear reactor to resume operations after decommissioning.
The 800MW nuclear plant's revival is contingent on approvals by the US Nuclear Regulatory Commission (NRC).
The financial assistance was given by former President Joe Biden's Loan Programs Office initiative, which aims to bolster emissions-free nuclear power amid increasing electricity demands driven by data centres and AI advancements.
Constellation Energy revealed its plans to reopen Three Mile Island, the site of a historic partial nuclear meltdown in 1979. They anticipate this Pennsylvania-based plant could be operational by 2027, roughly one year ahead of initial projections.
In 2022, Entergy permanently shut down the Palisades nuclear plant after more than 50 years of operation.
The closure occurred two weeks earlier than planned due to a malfunction with a control rod, despite a $6bn federal initiative aimed at supporting reactors facing financial challenges.
This coincided with President Donald Trump signing executive orders expediting new nuclear licenses and reforming NRC procedures.
In July 2025, Holtec obtained NRC approval for fuel loading into the Palisades' reactor.
However, multiple licensing actions and prerequisites remain under NRC review before Palisades can recommence operations under its original licence, valid until 2031.
Holtec is currently repairing the steam generators at Palisades due to a failure to adhere to standard maintenance procedures during the plant's shutdown.
Holtec emphasised its goal to restart the plant in the fourth quarter of 2025.
US DOE Secretary Chris Wright stated: “Thanks to President Trump, the Department of Energy is working in tandem with our regulatory partners to accelerate the reopening of the Palisades nuclear plant and unleash a true American nuclear renaissance.
“These efforts will help reinvigorate our nuclear industrial base, deliver lower energy costs for millions of Americans and strengthen our nation’s energy security.”
Since announcing financial closure in September 2024, this fifth disbursement brings total DoE-guaranteed loan funds released to Holtec for Palisades' reopening efforts to $335m.
These funds are instrumental as Holtec progresses towards meeting regulatory requirements and transitioning from decommissioning back into operation.
In early 2025, Fugro secured a site investigation contract with Enercon Services to assess the geological, geophysical and geotechnical conditions for Holtec International's twin SMR-300s [small module reactors).
