US Provides 2 Trillion Won Loan for Restarting Closed Nuclear Plant... First Support Case

Support Target is Palisade Nuclear Power Plant in Michigan
Inflation Reduction Act Measures to Revitalize Aging Power Plants

The Biden administration in the United States is planning to provide a loan of $1.5 billion (approximately 2 trillion won) to support the restart of a nuclear power plant, Bloomberg reported on the 30th (local time).

The support target is the Palisades Nuclear Power Plant located in South Haven, Michigan. The Palisades plant has a capacity of 800MW (megawatts) and produces about 5% of Michigan's electricity.

Palisade Nuclear Power Plant located in South Haven, Michigan [Photo by Yonhap News]

Holtec Decommissioning, the operator of Palisades, acquired the Palisades nuclear plant from U.S. energy company Entergy, which closed it in June 2022, and has been working to restart the plant.

This loan support is part of the Inflation Reduction Act (IRA), which aims to revitalize aging power plants. It is expected that the U.S. Department of Energy's loan guarantee program will provide the funding. Bloomberg, citing sources, reported that the support could be provided as early as February. If the support is finalized, it will be the first case of the Biden administration financially supporting a nuclear power plant.

Nick Kulp, spokesperson for Holtec Decommissioning, said, "A historic opportunity has come to the United States and Michigan," adding, "As we say goodbye to fossil fuels, nuclear power will play a very important role in achieving both climate goals and power generation efficiency."

Meanwhile, since 2013, more than 12 reactors in the U.S. have been shut down due to the rise of cheap natural gas and renewable energy. The U.S. Department of Energy has warned that more than half of the nation's reactors are at risk of closure due to economic factors.

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