The U.S. Department of Energy announced a $57 million disbursement for Holtec’s Palisades nuclear plant in Michigan, marking the second installment in a conditional loan guarantee that could reach up to $1.52 billion. Reuters reports that Holtec aims to bring the plant back online, potentially making it the first U.S. commercial reactor to restart after ceasing operations.

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This initiative is part of a broader strategy initiated by former President Joe Biden’s administration to boost nuclear energy as a virtually emissions-free power source, aligning with efforts to mitigate climate change and meet growing electricity demands driven by sectors like artificial intelligence, electric vehicles, and digital currency. Although the Palisades reactor was shut down in 2022 by Entergy over a control rod issue, Holtec is actively working on securing necessary permits and conducting repairs.

According to data from IndexBox, the nuclear energy market is expected to see a rebound as nations look to diversify energy portfolios and cut emissions. The repairs being made by Holtec include fixing the steam generators, a critical component that was not followed through in standard shutdown procedures, supporting the plant’s readiness for a potential restart later this year pending regulatory approvals.

Source: IndexBox Market Intelligence Platform