The first reactor in U.S. history to restart with federal loan support has been finalized at a Michigan nuclear plant.

• The Palisades nuclear plant in Covert Township, Michigan, has secured a $1.5 billion loan to resume operations.
• In U.S. history, Palisades would be the first reactor to restart, paving the way for Three Mile Island to possibly resume operations in 2028.
• Owner Holtec International plans to restart the plant next year.

The Palisades nuclear plant in Michigan has secured a $1.5 billion loan to restart its first reactor in U.S. history, the Department of Energy announced Monday.

Holtec International, the owner of Palisades, aims to restart the plant in the fourth quarter of 2025, pending approval from the U.S. Nuclear Regulatory Commission. Holtec is a privately held nuclear technology company based in Jupiter, Florida.

Nick Culp, a Holtec spokesperson, stated that all required funding has been obtained. The company intends to utilize the funds for inspections, testing, restoration, rebuilding, and replacement of equipment at the plant, as per the Department of Energy's guidelines.

Holtec has submitted all major licensing applications to the NRC and Culp expects a response from the NRC in 2025, according to company executives.

The restart of the reactor at Palisades would signify a significant achievement for the nuclear industry following a decade of reactor shutdowns in the U.S. due to the competition of nuclear efforts with inexpensive and plentiful natural gas.

The growing demand for nuclear power in the U.S. is driven by the need for carbon-free energy to meet increasing electricity demand and achieve climate goals. The successful restart of Palisades and the subsequent decision to bring Three Mile Island back online by 2028 demonstrate this trend.

David Turk, deputy secretary at the Department of Energy, informed reporters on a call that they have been utilizing all the tools in their tool belt to maintain nuclear reactors, bring them back online, finance advanced reactor deployment, and support the nuclear energy sector.

According to Turk, the demand for electricity is predicted to rise by approximately 15% in the upcoming years due to the growth of data centers driven by artificial intelligence and the expansion of domestic manufacturing.

Wolverine Power Cooperative, a nonprofit that provides electricity to rural communities in Michigan, has been chosen to supply power to Microsoft's data centers.

In Covert Township, near Lake Michigan, Palisades will create 600 jobs and supply electricity to 800,000 homes, according to Turk.

In the 2030s, Holtec intends to almost double the capacity of Palisades by constructing new, smaller modular reactors at the site. These prefabricated reactors, which are designed to be simpler and less expensive to operate, are expected to speed up the deployment of nuclear power.