The Biden administration announced Wednesday that it had agreed to provide a $1.52 billion loan guarantee to help a company restart a nuclear power plant in Michigan, the latest step in the effort government to revive the country’s reactors.
The Energy Department’s loan guarantee will allow Holtec International to revive the Palisades Nuclear Power Plant in Covert Township, Michigan, on the shores of Lake Michigan and about 40 miles west of Kalamazoo, and keep it running until at least 2051. The loan guarantee is contingent on the institution receiving regulatory approvals and meeting other requirements. The facility ceased operations in May 2022.
Nuclear power plants generate electricity without emitting the greenhouse gas emissions that are warming the planet, a feature that has made them popular with lawmakers and energy managers. But many of the country’s nuclear reactors, including the Palisades Power Plant, have reached or are nearing the end of their lifespan and are in need of major modernization. And few U.S. companies have built new nuclear power plants in recent decades because it is incredibly expensive and time-consuming. As a result, lawmakers from both parties have advocated for nuclear energy incentives and subsidies.
Holtec purchased the Palisades plant in 2022 with the intention of closing the plant, but later pushed to reopen the plant with the support of Michigan Gov. Gretchen Whitmer, a Democrat.
“Once opened, Palisades will be the first successfully restarted nuclear power plant in American history, generating $363 million in regional economic impact and helping Michigan lead the future of clean energy,” Ms. Whitmer said in an explanation.
Federal loan guarantees and grants are expected to help extend the life of other assets and spur the development of new technologies to ensure there is enough electricity to electrify heaters, cars and industry.
California in recent years has reversed its decision to close the Diablo Canyon power plant on the Pacific Coast because lawmakers fear the state doesn’t have enough power sources to avoid recurring blackouts on hot summer afternoons. The Department of Energy awarded Pacific Gas & Electric $1.1 billion to continue operating the plant.
“Nuclear power is our single largest source of carbon-free electricity, supporting 100,000 jobs directly across the country and hundreds of thousands more indirectly,” said Jennifer M. Granholm, Mr. Biden’s energy secretary said Wednesday in a statement announcing the loan guarantee for the Palisades plant.
The United States has the largest nuclear energy operation in the world, with nearly 100 units across the country, including two new ones at the Alvin W. Vogtle Generating Plant in Georgia, which took more than a decade to build and cost a staggering $35 billion.
Because of the challenges of building large power plants like the two Vogtle units – which experts in the US say is unlikely in the near future – the Biden administration has also pushed for smaller reactors that could be built faster and at a lower cost.
These units, often called small modular reactors, could be built in stages rather than all at once. However, no small modular reactors have received full approval and licensing from the Nuclear Regulatory Commission. Holtec wants to use the Palisades Nuclear Power Plant site to build two small modular reactors, but the costs would not be covered by the loan guarantee announced Wednesday.
Until small reactors become a reality, there will be a greater focus on extending the life of nuclear power plants already in operation and revitalizing older units.
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2024-03-27 19:00:54
www.nytimes.com
