U.S. Palisades nuclear plant secures another restart approval

The shut-down U.S. Palisades nuclear plant has moved one step closer to restarting. It has received a favorable finding from the U.S. regulator regarding its impact on the surrounding area. The 800 MW nuclear unit, which its operator shut down in 2022, is expected to resume generation at the end of this year. The owner plans to build two additional modular reactors at the site.

The U.S. Nuclear Regulatory Commission (NRC) has issued an important finding for the project to restart the single-unit Palisades nuclear plant in Michigan. In its assessment of the plant’s effects on its surroundings and the environment, it found that restarting the plant would have no significant adverse impact.

“The Palisades restart is progressing as planned, with the project moving smoothly on schedule and within budget. Recent milestones in operations, workforce training, regulatory approvals and site preparation reaffirm our mission to modernize the plant on the established timeline,” Holtec said in an April update on the status of the Palisades project.

The pressurized water reactor (PWR) unit, with an installed capacity of 800 MW, ceased operations on May 20, 2022. The plant then changed hands from Entergy Nuclear Operations to Holtec Decommissioning International, which was expected to decommission it. However, Holtec began work to restart the plant in 2023.

In September 2024, the Palisades restart project received a commitment from the U.S. government to back a $1.52 billion loan (about CZK 33 billion). Holtec itself will invest up to a further $500 million (around CZK 11 billion) in the restart.

Another 20 years of operation and new reactors

Before it was shut down, Palisades had an operating license through 2031. Holtec expects to begin the process of extending it by another 20 years next year, allowing the plant to generate electricity through 2051.

As part of its preparations for the restart, Holtec is also reviewing the condition of the plant’s technology, in addition to taking legislative steps. Information released by the company indicates, for example, that the condition of the steam generator was not as expected. Holtec attributes its poorer condition to non-compliance with procedures when the unit was shut down.

“Several major technical and maintenance activities are under way at the plant. We have removed the main turbine rotors for inspection and are cleaning the blades. Meanwhile, work continues on the primary cooling pumps, with one motor already off-site for refurbishment and the other being prepared for removal. Preparations for power transmission are also continuing, including the installation of new meters in the switchyard,” Holtec added.

Alongside the “old” unit, the company also plans to build two new small modular reactors at the site. Each is expected to have a capacity of 300 MW, with completion anticipated during the 2030s.

U.S. nuclear unit restarts

Holtec plans to restart the unit at the end of this year, which would make Palisades the first U.S. unit to resume commercial electricity generation after being shut down. This trend is being driven in particular by rising data center power consumption and the growing computational demands of artificial intelligence.

In addition to Palisades, projects to restart two other nuclear units are at various stages. Constellation Energy is restarting an 835 MW reactor at Crane Clean Energy Center (formerly Three Mile Island) following an agreement with Microsoft. The other unit slated for a restart is NextEra Energy’s 600 MW Duane Arnold. The owners plan to restart both units in 2028.