NUCLEAR POWERA Michigan Nuclear Plant Is Slated to Restart, but Trump Could Complicate Things
The owners of a shuttered nuclear plant on the shores of Lake Michigan are still banking on its historic reopening later this year, despite the confusion of President Donald Trump’s first days.
The owners of a shuttered nuclear plant on the shores of Lake Michigan are still banking on its historic reopening later this year, despite the confusion of President Donald Trump’s first days.
The Palisades Nuclear Plant ran for over 50 years in southwest Michigan’s Covert Township before it went offline, seemingly for good, in 2022. Soon after, lawmakers across the political spectrum and owner Holtec International pushed for a reversal. Holtec officials say they’re confident in the restart, partly because Trump’s administration has signaled strong support for nuclear power.
However, Trump’s messaging on nuclear hasn’t been uniform in the past, and more confusion has been kicked up by orders to pause Inflation Reduction Act funding and a now-rescinded memo calling to temporarily pause all federal loans and grants.
Such an environment could complicate things for projects like Palisades that require stability to plan for, say, large capital investments, according to Josh Freed, senior vice president for climate and energy at the centrist think tank Third Way.
The nuclear industry needs to know that policies, regulations, and promised funding “are actually delivered on time and in predictable ways,” he said. (Third Way supports the restart.)
The White House Office of Management and Budget did not respond to requests for comment.
There’s been renewed interest in nuclear power — and restarting mothballed plants — amid increased demand for electricity from technologies like data centers and efforts to lower greenhouse gas emissions.
Last year, the Biden administration pledged about $2.8 billion in Inflation Reduction Act funding toward the restart and other clean energy, including a $1.5 billion loan for Holtec and $1.3 billion in grants to help two rural electric cooperatives purchase that power: Indiana-based Hoosier Energy and Michigan’s Wolverine Power Cooperative.
Based in northern Michigan, Wolverine plans to buy over half of Palisades’ energy — whether or not it receives the estimated $650 million in IRA funding, which the co-op said would be passed along to customers.
Michigan law requires 100 percent clean energy by 2040, and it considers nuclear power clean. The state is allocating $300 million for the plant’s restart, which is expected to bring back 800 megawatts of power — enough for some 800,000 homes.
Wolverine officials said this would allow their members to reach the state’s energy goals a decade ahead of time. Zach Anderson, the chief operating officer, said during an interview with Grist in October that Palisades was a “perfect fit” for the co-op.
