Palisades Nuclear Plant Revival Sparks Industry Interest
Felicity Bradstock

In recent years, interest in developing the U.S. nuclear power capacity has grown. Under the Biden administration’s push for a green transition, more companies were encouraged to invest in clean energy. In addition, the power demand is expected to grow much more rapidly than previously thought, as the tech sector drives demand with plans to construct huge data centres. This, and efforts to improve the public perception of the safety standards of nuclear facilities, have revitalised support for nuclear power. 

In addition to plans to build new, large-scale nuclear reactors and small modular reactors (SMRs) in the coming decades, the U.S. hopes to refurbish several of its long-neglected power plants. There were 104 operational nuclear reactors in the U.S. between 1998 and 2013, but this figure declined to 92 by 2022. In 2023, 22 commercial nuclear power reactors at 18 sites were in various stages of decommissioning, according to the U.S. Nuclear Regulatory Commission (NRC). 

Now, with reinvigorated support for nuclear power, several companies are interested in renovating viable nuclear plants, which could be potentially cheaper and faster than developing new projects. Last year, Holtec International, the private owner of the Palisades Power Plant in Covert, Michigan, announced plans to reopen the facility after it closed in 2022 following 40 years of operation. The plant closed two weeks ahead of schedule due to a glitch with a control rod, despite a $6 billion federal programme to save nuclear plants suffering from increasing costs. Holtec said it hoped to get the plant up and running again by the end of 2025. 

Despite the significant uncertainty surrounding the clean energy industry under the new President Donald Trump administration, nuclear power seems to be one thing that both Biden and Trump agreed on. Trump’s recently-appointed Energy Secretary Chris Wright has voiced his support for nuclear power. His first Secretarial Order stated, “The long-awaited American nuclear renaissance must launch during President Trump’s administration. As global energy demand continues to grow, America must lead the commercialisation of affordable and abundant nuclear energy.” 

This month, Wright announced the release of the second loan disbursement of almost $57 million - of an up to $1.52 billion loan guarantee from the Loan Programs Office - to Holtec for the Palisades Nuclear Plant. Its development will be further supported by a $1.3 billion loan from the Department of Agriculture and $300 million in grants from the state of Michigan. 

Wright stated, “Unleashing American energy dominance will require leveraging all energy sources that are affordable, reliable and secure - including nuclear energy.” He added, “Today’s action is yet another step toward advancing President Trump’s commitment to increase domestic energy production, bolster our security and lower costs for the American people.”

The Palisades will be the first U.S. commercial nuclear plant to recommence operations after they were ceased, subject to U.S. NRC licensing approvals. Once complete, it is expected to deliver 800 MW of clean power and support 600 jobs. Holtec now plans to repair the steam generators, at the facility as the standard procedure for maintaining the units was not followedwhen the plant was closed. 

If successful, the reopening of the Palisades Nuclear Plant could provide a blueprint for other energy companies to follow. With the demand for power increasing rapidly, the refurbishment of existing nuclear facilities could provide the clean power needed to avoid a transition back to fossil fuels. However, the project is not without its challenges. 

The Palisades first began operations in 1971 and, having been shut for three years requires some work to get it up and running again to the necessary safety standards. Holtec found that there are damaged tubes in the plant’s two generators, which were installed in 1990. The tubes are needed to protect public health as, if a tube ruptures, it is possible for radioactive material to be released. Plant operators must show NRC that if any tube failure occurs, any release of materials would remain below “conservative limits.”

Alan Blind, the engineering director at Palisades from 2006 to 2013 under the previous owner Entergy, explained, “The NRC is scared to death of steam generator tube ruptures. It’s a very real accident. It’s not a hypothetical.” 

Holtec has told the media that the generators are “fully repairable” and has requested that the NRC complete its review of the repair plan by 15th August. However, federal regulators believe it may take longer to reopen the Palisades than Holtec’s current deadline. Holtec’s repair plan is scheduled to commence in the summer following inspection and testing. 

Both Holtec and the government are optimistic about the reopening of the Palisades. If successful, it could encourage nuclear companies to invest in the refurbishment of other plants. However, should the project be more expensive, complicated, or slower than anticipated, it could deter other companies from undertaking similar projects.  

By Felicity Bradstock for Oilprice.com 

 

 

Felicity Bradstock is a freelance writer specialising in Energy and Finance. She has a Master’s in International Development from the University of Birmingham, UK.

 

 

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