Decommissioned nuclear power plant on Lake Michigan receives another $150 million from the state

COVERT, MI – Among the largest items in Michigan’s recently passed state budget is an additional $150 million to renew the power supply at a decommissioned nuclear power plant on Lake Michigan.

Michigan lawmakers recently passed an $82.5 billion state budget for 2025. Among the state’s key investments is a doubling of the plan to restart the Palisades Nuclear Generating Station near South Haven. The 800-megawatt plant was shut down more than two years ago.

With this second round of nine-figure grants for the nuclear plant, the state’s total contribution is $300 million. The approved budget now awaits Governor Gretchen Whitmer’s signature.

Democratic state Rep. Joey Andrews of St. Joseph said that’s the amount of state funding that federal authorities have requested as part of a $1.52 billion loan guarantee agreement for Holtec International, the power plant owner and operator, to restart.

The U.S. Department of Energy signed the federal funding agreement four months ago.

Andrews said Holtec would have to spend the state’s money before it could access federal funds.

“Now that they have that, virtually anything is open to them and they can access all the resources, including federal funds, to complete the project,” Andrews said.

Restarting the 1970s-era plant in Van Buren County is a central part of the clean energy agenda for both Michigan and the U.S. governments seeking to reduce greenhouse gas emissions and combat climate change. That’s because nuclear power produces large amounts of electricity without the climate-damaging emissions that come from coal-fired power plants.

If regulators approve the project, the nuclear power plant would be the first in the United States to be restarted after decommissioning began.

Whitmer’s senior climate and energy adviser, Kara Cook of the state Department of Environment, Great Lakes and Energy, said the additional state funds for the Palisades restart are part of the governor’s climate roadmap, calling it the “largest or most exciting” investment in climate action in the recently approved state budget.

Holtec officials said they were grateful for the “strong, unwavering support” of the state in restarting the plant, as well as local and federal partners.

“Restarting Palisades is critical to our energy security and our state’s climate goals,” said company spokesman Nicholas Culp.

“Preparations for a restart are in full swing. Over 200 new employees have been hired this year alone, bringing the number of employees on site to over 430. At the time of the restart, we will be fully staffed with 600 full-time, highly qualified employees here in Covert Township.”

Meanwhile, the Nuclear Regulatory Commission (NRC) recently initiated its environmental review of Holtec’s application to restart the reactor.

The agency also released an inspection report on two on-site visits in May. During those visits, inspectors found no violations “of more than minor significance” related to the company’s protection of workers and the public, and its ability to assess the training and evaluation of plant operators.

Andrews said he was not surprised the plant passed recent inspections. “We expect the reconnection to go smoothly,” he said.

Extensive inspections and testing are required before the plant can be restarted. The NRC has established a new oversight board. In the coming years, regulators are expected to require upgrades, modifications and replacement of existing equipment at the plant, which has been shut down since 2022.

There are critics of the plan to re-energize the old nuclear power plant. Both environmentalists and some neighbors have expressed concern about whether the old plant can be safely restarted.

Activist Michael Keegan of the anti-nuclear organization Don’t Waste Michigan said during an NRC environmental review meeting in Benton Harbor on July 11 that he felt regulators were not properly assessing the risks of restarting the plant.

“I think you know everything I know about the damaged reactor vessel,” Keegan said. “It seems to me that this decision is based on money and politics, and I protest.”

Since Holtec applied to restart the Palisades nuclear power plant, both Iowa and New York are now exploring options for restoring energy to the decommissioned Duane Arnold and Three Mile Island Unit 1 nuclear reactors.

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