U.S. Department of Energy allocates $57 million to Palisade

The U.S. Department of Energy announced a $57 million payment to the Palisades nuclear power plant in Holtec, Michigan, marking the second part of a conditional loan guarantee that can reach up to $1.52 billion. Reuters reported that Holtec’s goal is to re-line the factory, potentially making it the first U.S. commercial reactor to restart after the shutdown.

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The move is part of a broader strategy launched by former President Joe Biden’s administration to boost nuclear power to power sources with little emissions, align with efforts to mitigate climate change, and meet sector-driven electricity demands such as artificial intelligence, electric vehicles and digital currencies. Despite shutting down the Palisades reactor on the lever issue through Entergy in 2022, Holtec is actively working to ensure necessary permits and repairs.

According to Indexbox, the nuclear energy market is expected to see a rebound as countries want to diversify their energy portfolio and reduce emissions. Repairs conducted by HOLTEC include repairs to the steam generator, a key component not followed in the standard shutdown procedure, supporting the plant’s ready to prepare for a potential restart later this year pending regulatory approval.

Source: Index Box Market Intelligence Platform