WASHINGTON (dpa-AFX) - On Wednesday, the U.S. Department of Energy announced that it has granted a conditional commitment of up to $1.52 billion to Holtec International Palisades.
The funding will be provided to restore and resume the operation of an 800-megawatt electric nuclear generating station located in Covert Township, Michigan.
The Palisades Nuclear Plant ceased its operations in May 2022, and with the help of this loan guarantee, it is likely to resume its services until at least 2051, upon receiving regulatory approvals.
This initiative is in alignment with President Biden's agenda to create job opportunities and promote clean energy. As a result, the project is anticipated to maintain around 600 jobs in Michigan, with a significant portion being union labor. Additionally, it is expected to support over 1,000 jobs during the plant's maintenance periods every 18 months.
The project is expected to prevent 4.47 million tons of CO2 emissions annually, totaling 111 million tons over the 25-year operational period. This amount is comparable to eliminating over 970,000 gasoline-powered cars' yearly emissions. Once active, the Palisades Nuclear Plant will offer continuous, emission-free electricity production, which is a crucial addition to the Midcontinent Independent System Operator's energy mix amid coal plant retirements.
Aside from the primary 800-MW reactor, Holtec plans to deploy its first two small modular reactor units at the Palisades location, which won't be part of the potentially funded project. These units could add another 800 MW of generation capacity on-site, leveraging existing infrastructure and promoting the domestic advancement of new reactor technologies crucial for addressing the climate crisis.
Given the existing plant infrastructure, the project won't entail conventional major construction work but will necessitate inspections, testing, refurbishment, reconstruction, and equipment replacement. Holtec is seeking NRC reauthorization for the Palisades operating license, overseen by the federal agency regulating and licensing commercial nuclear power plants in the U.S. To date, Holtec has filed three NRC licensing applications for license reauthorization and plans to submit the remainder by Spring 2024.
This conditional commitment outlines the Department of Energy's intention to finance the project, contingent on the company meeting specific technical, legal, environmental, and financial requirements before finalizing funding agreements and disbursing the loan.
Copyright(c) 2024 RTTNews.com. All Rights Reserved
Copyright RTT News/dpa-AFX
© 2024 AFX News
