The Palisades nuclear power plant in Michigan could become the first nuclear power plant that was successfully started in the U.S. Holtec International submitted a filing with the Nuclear Regulatory Commission (NRC) to formally start the process of seeking reauthorization of power plant operations at the plant which was shut down in May 2022. Holtec said that the filing followed a series of public meetings with Palisades within the NRC’s existing regulatory framework.
Jean Fleming is the Holtec International Vice President of Licensing, Regulatory Affairs and Probabilistic Safety Analysis. She said, “Our licensing submittal is a significant step in exploring the potential for Palisades to continue contributing to the region’s energy and economic needs, while adhering to the highest safety and regulatory standards. We understand the importance of nuclear power in our nation's energy mix and the critical role it plays in providing safe, reliable, carbon-free electricity here in Michigan. Palisades' safety and operational performance met the industry's highest standards when it was taken offline last year. Its systems and equipment remain well maintained and in excellent material condition. This licensing submittal is the first of a series of submittals intended to return Palisades to full operation."
Palisades is a single unit nuclear power plant which started commercial operations in 1971. Entergy announced in 2016 that it planned to close the plant. The NRC approved the license from Entergy to Holtec for the purpose of decommissioning the plant in 2021. The eight hundred- and five-megawatt pressurized water reactor was removed from service by Entergy on the 20th of May 2022 and defueled by the 10th of June.
The sale to Holtec was completed later that same month. Holtec announced a few days later that it was applying for federal funding to allow it to restart the plant. It was unsuccessful in the first round of the U.S. Department of Energy’s (DoE’s) Civil Nuclear Credit program. However, Holtec announced in December that it was reapplying. Holtec said that it was “working cooperatively with the DOE to move the loan application process forward”.
On the 31st of July, Michigan Governor Gretchen Whitmer signed into law the State of Michigan's Fiscal Year 2024 budget. The budget provides one hundred and fifty million dollars in funding for the restart of the plant.
Last month, Holtec announced that it had signed a long-term power purchase agreement with the non-profit Wolverine Power Cooperative. Under the multi-decade agreement, Wolverine commits to purchasing two-thirds of the power generated from a restarted Palisades plant. Wolverine’s partner Hoosier Energy is purchasing the balance.
Holtec noted that “will greatly enhance Michigan's carbon-free energy generation, the region's grid reliability and decrease the region's reliance on (expensive) energy imports”.
Kelly Trice is the President of Holtec Nuclear Generation and Decommissioning. He said that “Holtec plans to build up the Palisades site into a mega-clean energy provider to the region with the restarted Palisades power plant as its centerpiece.”
This is an interesting development for the U.S. nuclear industry. It is the first time that a shuttered nuclear power plant due to be decommissioned was authorized to be restarted instead.