The US Department of Energy (DOE) has released $56.7m from an up-to-$1.52bn loan guarantee to support the restart of Holtec’s 800MW Palisades nuclear plant in the US state of Michigan.
The plant could become the first US commercial reactor to resume operations after being shut down. The restart is subject to US Nuclear Regulatory Commission licensing approvals.
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The allocation is the second disbursement of funds from the Loan Programs Office (LPO) since the financial loan closed in September 2024.
The initial disbursement of the loan guarantee, amounting to $38m, took place in January 2025.
DOE Secretary Chris Wright stated: “Unleashing American energy dominance will require leveraging all energy sources that are affordable, reliable and secure – including nuclear energy.
“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 conditional loan guarantee is part of the efforts initiated under former President Joe Biden’s administration to promote nuclear energy as a means of generating emissions-free power, as reported by Reuters.
The initiative is aimed at addressing climate change and meeting the increasing electricity demand driven by AI, electric vehicles and digital currency.
In October 2024, the former administration announced more than $2.8bn in funding to support clean power in the Midwest.
The Palisades reactor, with a capacity of 800MW, was permanently shut down in May 2022 after more than five decades of operation by its former owner, Entergy.
The early closure, prompted by a control rod malfunction, occurred despite a federal programme allocating $6bn to support struggling nuclear plants.
Holtec acquired the plant in June 2022 and is working towards reopening it in the fourth quarter of 2025.
As part of the restart process, Holtec is repairing steam generators at Palisades, addressing maintenance standards that were not met during the plant’s shutdown.
