Palisades Nuclear Plant to reopen with $1.5B federal loan

LANSING, Mich. (FOX 2) - More than two years after it was closed, the nuclear power plant located on Lake Michigan in the lower peninsula will restart operations thanks to a $1.5 billion loan from the federal government.

The U.S. Department of Energy announced the loan with the owners of the Palisades Nuclear Power Plant, which is based in Covert, Michigan, just south of South Haven along the shore of the Great Lakes. Another $1.3 billion will help keep energy costs low for the 800,000 homes that will receive power from the facility.

It would be the first-ever restart of a nuclear power plant, a news release from the governor's office said Monday.

Along with powering hundreds of thousands of homes, operating the plant means employing 600 workers and adding $40 million in annual tax revenue to the area. It also means avoiding the creation of millions of tons of carbon dioxide in the atmosphere.

Palisades is expected to run until at least 2051.

"Reopening Palisades will keep energy costs low, shore up domestic energy production, and secure Michigan’s competitiveness for future economic development," said Gov. Gretchen Whitmer in a statement.

The announcement included celebrating nuclear power as the country's "largest source of carbon-free" power. 

Reopening Palisades has been a source of discussion as the U.S. has encouraged more energy creation from cleaner sources. Federal investment came from the Inflation Reduction Act, which includes a program for reinvesting in infrastructure for producing energy.