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Released September 12, 2024 | SUGAR LAND
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Researched by Industrial Info Resources (Sugar Land, Texas)--Holtec International (Jupiter, Florida) continues to work toward repowering the Palisades nuclear power plant in Michigan, although the U.S. Nuclear Regulatory Commission (NRC) has yet to officially renew the plant's operating license. While there is no guarantee the NRC will approve Holtec's request to restart the plant, the effort is gaining momentum.
The 800-megawatt (MW) Palisades nuclear plant, which began operating in 1971, was closed in 2022 by then-owner Entergy (NYSE:ETR) (New Orleans, Louisiana), which sold the facility to Holtec for decommissioning. Holtec then submitted a filing with the NRC in late 2023 to formally begin the process of seeking federal authorization to repower the facility. The company aims for the plant to be operational by the fourth quarter of 2025.
In a press release announcing the initial filing, Jean Fleming, international vice president of licensing, regulatory affairs and probabilistic safety analysis for Holtec, said, "We understand the importance of nuclear power in our nation's energy mix and the critical role it plays in providing safe, reliable, carbon-free electricity here in Michigan. Palisades's safety and operational performance met the industry's highest standards when it was taken offline last year. Its systems and equipment remain well maintained and in excellent material condition."
In late August of this year, Holtec highlighted restart project activities that are proceeding on schedule. "As a part of this repowering effort, Palisades is undergoing extensive inspections, testing, maintenance, system, and equipment upgrades and modifications to ensure long-term continuation as a safe, reliable nuclear power generator," the company said in a press release.
"Our most recent major project milestone was this month with the completion of reactor vessel internal inspections," the company added. "Our team is now proceeding with scheduled steam generator cleaning and inspections within the reactor building."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant and Project databases can click here for a profile on the Palisades plant and read more information on the restart of the plant's reactors and turbines.
Still, Holtec is seeking several regulatory approvals from the NRC, including the reinstatement of the plant's operating license. According to the NRC website, Holtec has several requests and applications filed with the agency. The documents have estimated completion dates ranging from December 31, 2024, to June 30, 2025.
The NRC has established the Palisades Nuclear Plant Restart Panel, a group tasked with overseeing the restart effort, including coordinating "licensing, inspection, and oversight activities across the agency to ensure that all aspects of the PNP restart project are meeting the NRC's safety, security, and environmental requirements."
Last month, the panel held a public meeting, where Michael Schultheis, Palisades regulatory and site strategies director for Holtec, reiterated the company's commitment to repowering the plant along its planned timeline: "We expect to be resuming power operations in October of next year."
In support of the repowering efforts, the U.S. Department of Energy (DOE) has agreed to loan Holtec $1.52 billion to help restart the plant, dependent on the company meeting several technical, legal, environmental, and financial conditions, according to the DOE loan office. On the state level, Michigan Governor Gretchen Whitmer (D) has signed into law two separate grants (totaling $300 million), as part of the state's fiscal-year 24 and 25 budgets, respectively, to support the effort.
In addition, the U.S. Department of Agriculture (USDA) recently announced two rural electric cooperatives each will receive a portion of Inflation Reduction Act (IRA) funding to buy power from the facility, lowering wholesale electricity costs. Michigan-based Wolverine Power Cooperative (Cadillac) will use the funding to purchase 435 MW from the plant and Indiana-based Hoosier Energy (Bloomington) will use the funding to purchase 369 MW, according to the USDA's project announcements. The USDA did not announce the dollar amounts, but according to local news media, Wolverine will receive more than $600 million. Hoosier Energy's grant amount is unknown.
The cooperatives already have power purchase agreements (PPAs) in place to offtake the plant's power. The PPAs also include the ability to expand the contracts to include power offtake from the two 300-MW small modular reactors (SMR) that Holtec aims to build and commission at the Palisades site. The company has said it plans to file a construction permit application for the SMRs in 2026 and aims to commission the first reactor in mid-2030, subject to regulatory reviews and oversight.
The DOE's loan commitment aimed at restarting the plant does not include financing for the SMR project.
Subscribers can click here to read the related project report.
For information on two nuclear power plants that recently had their operational licenses extended by the NRC, see September 4, 2024, article - Dominion Gets Approval to Operate North Anna Nuclear Plant Through 2060, and August 2, 2024, article - Vistra Secures Approval to Operate Comanche Peak Nuclear Plant Through 2053.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
The 800-megawatt (MW) Palisades nuclear plant, which began operating in 1971, was closed in 2022 by then-owner Entergy (NYSE:ETR) (New Orleans, Louisiana), which sold the facility to Holtec for decommissioning. Holtec then submitted a filing with the NRC in late 2023 to formally begin the process of seeking federal authorization to repower the facility. The company aims for the plant to be operational by the fourth quarter of 2025.
In a press release announcing the initial filing, Jean Fleming, international vice president of licensing, regulatory affairs and probabilistic safety analysis for Holtec, said, "We understand the importance of nuclear power in our nation's energy mix and the critical role it plays in providing safe, reliable, carbon-free electricity here in Michigan. Palisades's safety and operational performance met the industry's highest standards when it was taken offline last year. Its systems and equipment remain well maintained and in excellent material condition."
In late August of this year, Holtec highlighted restart project activities that are proceeding on schedule. "As a part of this repowering effort, Palisades is undergoing extensive inspections, testing, maintenance, system, and equipment upgrades and modifications to ensure long-term continuation as a safe, reliable nuclear power generator," the company said in a press release.
"Our most recent major project milestone was this month with the completion of reactor vessel internal inspections," the company added. "Our team is now proceeding with scheduled steam generator cleaning and inspections within the reactor building."
Subscribers to Industrial Info's Global Market Intelligence (GMI) Power Plant and Project databases can click here for a profile on the Palisades plant and read more information on the restart of the plant's reactors and turbines.
Still, Holtec is seeking several regulatory approvals from the NRC, including the reinstatement of the plant's operating license. According to the NRC website, Holtec has several requests and applications filed with the agency. The documents have estimated completion dates ranging from December 31, 2024, to June 30, 2025.
The NRC has established the Palisades Nuclear Plant Restart Panel, a group tasked with overseeing the restart effort, including coordinating "licensing, inspection, and oversight activities across the agency to ensure that all aspects of the PNP restart project are meeting the NRC's safety, security, and environmental requirements."
Last month, the panel held a public meeting, where Michael Schultheis, Palisades regulatory and site strategies director for Holtec, reiterated the company's commitment to repowering the plant along its planned timeline: "We expect to be resuming power operations in October of next year."
In support of the repowering efforts, the U.S. Department of Energy (DOE) has agreed to loan Holtec $1.52 billion to help restart the plant, dependent on the company meeting several technical, legal, environmental, and financial conditions, according to the DOE loan office. On the state level, Michigan Governor Gretchen Whitmer (D) has signed into law two separate grants (totaling $300 million), as part of the state's fiscal-year 24 and 25 budgets, respectively, to support the effort.
In addition, the U.S. Department of Agriculture (USDA) recently announced two rural electric cooperatives each will receive a portion of Inflation Reduction Act (IRA) funding to buy power from the facility, lowering wholesale electricity costs. Michigan-based Wolverine Power Cooperative (Cadillac) will use the funding to purchase 435 MW from the plant and Indiana-based Hoosier Energy (Bloomington) will use the funding to purchase 369 MW, according to the USDA's project announcements. The USDA did not announce the dollar amounts, but according to local news media, Wolverine will receive more than $600 million. Hoosier Energy's grant amount is unknown.
The cooperatives already have power purchase agreements (PPAs) in place to offtake the plant's power. The PPAs also include the ability to expand the contracts to include power offtake from the two 300-MW small modular reactors (SMR) that Holtec aims to build and commission at the Palisades site. The company has said it plans to file a construction permit application for the SMRs in 2026 and aims to commission the first reactor in mid-2030, subject to regulatory reviews and oversight.
The DOE's loan commitment aimed at restarting the plant does not include financing for the SMR project.
Subscribers can click here to read the related project report.
For information on two nuclear power plants that recently had their operational licenses extended by the NRC, see September 4, 2024, article - Dominion Gets Approval to Operate North Anna Nuclear Plant Through 2060, and August 2, 2024, article - Vistra Secures Approval to Operate Comanche Peak Nuclear Plant Through 2053.
Industrial Info Resources (IIR) is the leading provider of industrial market intelligence. Since 1983, IIR has provided comprehensive research, news and analysis on the industrial process, manufacturing and energy related industries. IIR's Global Market Intelligence (GMI) platform helps companies identify and pursue trends across multiple markets with access to real, qualified and validated plant and project opportunities. Across the world, IIR is tracking more than 200,000 current and future projects worth $17.8 trillion (USD).
