The United States Department of Energy, through its Loan Programs Office (LPO), has earmarked up to $1.52 billion in conditional loan guarantee commitment to support the resumption of services at the Palisades Nuclear Plant, which has been offline since May 2022.
The loan guarantee is provided to Holtec Palisades, which is working to restore the 800-megawatt facility in Covert Township, Michigan. The plant would be upgraded to produce baseload clean power until at least 2051, the DOE said in a news release.
“Nuclear power is our single largest source of carbon-free electricity, directly supporting 100,000 jobs across the country and hundreds of thousands more indirectly”, Energy Secretary Jennifer M. Granholm said. “President Biden’s Investing in America agenda is supporting and expanding this vibrant clean energy workforce here in Michigan with significant funding for the Holtec Palisades nuclear power plant".
“Today, Holtec has secured a $1.5 billion conditional commitment for a loan from the U.S. Department of Energy to reopen the Palisades Nuclear Power Plant, protecting 600 good-paying, high-skill jobs and clean, reliable power for 800,000 homes”, Michigan Governor Gretchen Whitmer said. “Once open, Palisades will be the first successfully restarted nuclear power plant in American history, driving $363 million of regional economic impact and helping Michigan lead the future of clean energy”.
The project is anticipated to avoid 4.47 million tons of carbon dioxide (CO2) emissions per year for a total of 111 million tons of CO2 emissions during its projected 25 years of operation, the DOE said.
Upon commencement of operation, the Palisades Nuclear Plant is set to deliver continuous, emissions-free electricity generation, serving as a crucial asset in the resource portfolio of the Midcontinent Independent System Operator amid the phased retirement of coal facilities, the DOE said.
Holtec Palisades has secured long-term power purchase agreements for the plant's entire power output with rural electric cooperatives Wolverine Power Cooperative and Hoosier Energy in Michigan, Illinois, and Indiana.
To contact the author, email andreson.n.paul@gmail.com
Generated by readers, the comments included herein do not reflect the views and opinions of Rigzone. All comments are subject to editorial review. Off-topic, inappropriate or insulting comments will be removed.