The Biden-Harris Administration, through the US Department of Energy (DOE) and Department of Agriculture (USDA), has allocated over $2.8bn to support clean energy in the Midwest. As part of this effort, the DOE has secured a loan guarantee of up to $1.52bn for recommissioning the 800 MW Palisades Nuclear Plant in Michigan, marking the first revival of a retired nuclear facility in US history.
Palisades, which closed in May 2022, will resume operations, providing clean baseload power until at least 2051, subject to regulatory approvals. The project will safeguard 600 union jobs at the plant, create an additional 1,100 jobs in the community, and supply reliable power to 800,000 homes across Michigan, Wisconsin, Indiana, and Illinois. It is expected to cut greenhouse gas emissions by 4.47 million tonnes annually.
Managed by Holtec International and Wolverine Power Cooperative, the restart is backed by long-term power purchase agreements. The USDA has also allocated over $1.3 billion to help Wolverine Power Cooperative and Hoosier Energy lower electricity costs in rural areas. Palisades is situated in a disadvantaged community where energy costs are higher than 97% of US communities.
Nuclear energy has been identified as a key component in the US goal for a carbon-free power sector by 2035.