Investment would make Palisades first successfully restarted nuclear power plant in US history

LANSING, MI - On September 30, 2024, Governor Gretchen Whitmer commended the U.S. Department of Energy (DOE), the U.S. Department of Agriculture (USDA), and the Biden-Harris Administration for two recent announcements that will support efforts to restart Palisades.  

“Reopening Palisades will keep energy costs low, shore up domestic energy production, and secure Michigan’s competitiveness for future economic development,” said Governor Whitmer. “Thanks to the Biden-Harris administration, the State of Michigan, the Michigan Legislature, Holtec, and Wolverine, work will continue to restart operations at Palisades. Once complete, Palisades will become the first successfully restarted nuclear power plant in American history, protecting 600 union jobs at the plant, 1,100 in the community, and access to clean, reliable power for 800,000 homes. We will lead and build the future here in Michigan with the strongest clean energy labor standards in the nation, and tools to build more renewable energy faster. Let’s keep getting it done.” 

The U.S. DOE finalized a $1.52 billion loan agreement with Holtec International to aid in the restart of the Palisades Nuclear Power Plant, and the USDA awarded over $1.3 billion to support the restoration of service at the plant and lower energy costs, including an over $650 million grant to Wolverine Power Cooperative to reduce the cost of power produced at Palisades. These investments will support Palisades in becoming the first successfully restarted nuclear power plant in American history, providing clean, reliable energy for 800,000 homes, and protecting 600 jobs, many of them filled by workers who have been at the plant for more than 20 years with approximately 45% of the workforce at the site being good-paying union labor upon restart. 

Michigan Department of Labor and Economic Opportunity Director Susan Corbin, Michigan Department of Environment, Great Lakes, and Energy Director Phil Roos, Michigan Department of Agriculture and Rural Development Director Tim Boring, and senior officials from the Michigan Economic Development Corporation all joined Holtec, Wolverine, federal and local officials, and economic development and labor stakeholders at the plant today to celebrate the funding announcements and discuss the path forward. White House National Climate Advisor Ali Zaidi, DOE Deputy Secretary David Turk, and USDA Deputy Secretary Xochitl Torres Small also participated. 

“Nuclear power is America’s largest source of carbon-free of electricity, supporting hundreds of thousands of direct and indirect jobs across the country and will play a critical role in tackling the climate crisis and protecting public health and the environment from its impacts,” said U.S. Secretary of Energy Jennifer M. Granholm. “Under President Biden and Vice President Harris’ leadership, DOE and our partners across the federal government are working around the clock to ensure this vital source of clean electricity-and the vibrant workforce it supports-continues to power our nation for generations to come.”     

“Since day one of their Administration, President Biden and Vice President Harris have been clear that rural electric cooperatives are the backbone of our nation and investing in them is a top priority,” said Agriculture Secretary Tom Vilsack. “Through the investments announced today under USDA’s New ERA program, we can continue supporting a more prosperous future for rural communities by accelerating the transition to clean energy, keeping monthly bills low for American families and investing in a strong rural workforce.”  

“Michigan needs more clean energy production to meet our decarbonization goals,” said state Rep. Joey Andrews (D-St. Joseph). “I am proud to see Southwest Michigan lead the nation as the first to restart a nuclear power plant with the reopening of Palisades. This historic achievement ensures we are advancing our economy, providing Michiganders with high-paying job opportunities and making strides toward our clean energy goals. I am grateful for the continued support and investments in the future well-being of our community.”   

“This is a triumph for the United States in our collective pursuit of a clean and dependable energy future. We applaud the visionary leadership of the Biden-Harris administration, Secretary Granholm, Director Shah, and the Department staff for seizing this historic opportunity and once again demonstrating America’s role as a global energy leader,” says Kelly Trice, Holtec President, adding, “The repowering of Palisades will restore safe, around-the-clock generation to hundreds of thousands of households, businesses, and manufacturers. It also confers the environmental and public health benefits of emissions-free generation, hundreds of high-paying local jobs with a large union workforce, economic growth, and the social benefits of a strong community partner. We are also appreciative of the strong, unwavering support of Governor Whitmer, bipartisan support from the Michigan legislature and congressional delegation, and certainly from the local community, all of whom have championed this effort from the very beginning. As one of the country’s leading energy innovators, we are grateful and ready to help make history.” 

A 2023 study from the Economic Growth Institute at the University of Michigan determined the reopening of the plant will boost the local economy by $90 million in gross personal income each year, and $40 million in annual tax revenue. Additionally, the study revealed that the shutdown of the plant led to an annual loss of $259 million for the region. The reopening will reverse the loss, growing the regional economy, and building prosperity for workers and their communities.  

Saving Palisades 

Palisades is a nuclear plant in Southwest Michigan that employed 600 workers making an average of $117,845 while the plant was in operation, supported over 1,100 local jobs, and produced more than 800 megawatts of reliable, clean power-enough to power 800,000 homes. The Palisades plant was shut down on May 20, 2022. The plant was sold to Holtec International in June 2022.The plant will be brought back online and upgraded to produce clean baseload power until at least 2051, subject to U.S. Nuclear Regulatory Commission (NRC) licensing approvals. 

In addition, the Palisades Nuclear Power Plant restart is projected to avoid emitting 4.47 million tonnes of CO2 per year for a total of 111 million tonnes of CO2 emissions during the projected 25 years of operations. This amount is roughly equivalent to the emissions of powering 580,000 houses for 25 years.

In March 2024, the U.S. Department of Energy announced a decision to issue a conditional commitment for an up to $1.52 billion loan to restart the Palisades Nuclear Power Plant, supported by the Inflation Reduction Act’s Energy Infrastructure Reinvestment (EIR) program. The Governor and the Michigan legislature also secured $300 million to support critical reopening activities including infrastructure upgrades, fuel purchases, workforce development, and more. 

On September 5, 2024, President Biden announced an over $650 million USDA grant to Wolverine in new Energy Infrastructure Reinvestment program financing to purchase approximately 435 MW of clean, carbon-free wholesale energy from Palisades to serve its members across rural Michigan. The crucial EIR financing is available through the historic IRA, and the project is expected to support key initiatives such as low-income community-serving solar, skilled trades training, agricultural investments and energy efficiency programs, which will benefit communities across rural Michigan for decades to come.  

Biden-Harris Administration’s Clean Energy Investments in Michigan 

President Biden’s IRA made the single largest investment in climate and clean energy in American history. Nearly two years after passage, the IRA has already led to 62 new clean energy projects in Michigan ranging from solar and electric vehicles to hydrogen and battery storage, the most across any state in the nation. These projects have spurred more than $26 billion in investment, creating or moving forward more than 21,000 jobs. 

President Biden’s BIL, also known as the Infrastructure Investment and Jobs Act, is helping Michigan fix the damn roads, bridges, pipes, internet, and so much more. The BIL’s clean energy investments are modernizing our power grid, investing in energy efficiency improvements, and helping deploy more clean energy-including nuclear energy.    

Michigan’s Clean Energy Leadership 

In November 2023, the Governor signed historic clean energy laws, making Michigan a national leader in the fight against climate change. The bills will lower household utility costs, create tens of thousands of good-paying jobs, and protect Michigan’s precious air, water, and public health.  

According to the 2024 Clean Jobs America Report Michigan is home to 127,690 clean energy jobs, with clean energy jobs growing almost twice the rate of the overall economy. stated that clean energy businesses in Michigan added more than 5,400 workers in 2022, growing almost twice the rate of the overall economy. The U.S. Energy and Employment Report highlighted Michigan’s position as a leader in overall energy sector job growth, behind only Texas and California.