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State receives $1.5 billion federal loan to restart nuclear plant

Nuclear power is back on the rise in Michigan thanks to support from state and federal officials.

Today, Energy Secretary Jennifer Granholm announced a $1.5 billion loan to reopen a Western Michigan nuclear power plant, a move that would make history across the country.

The funding will go towards reopening the Palisades Nuclear Power Plant, which sits on Lake Michigan north of Benton Harbor.

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The plant is set to be the first in the country to be restarted after previously being shut down.

Advocates say the move is a landmark accomplishment in the push for clean energy and will help Michigan move away from dependence on fossil fuels.

“We passed a comprehensive climate package in Michigan, pushing the state towards 100% clean energy by 2040,” said Rep. Joey Andrews, D-St. Joseph. “And as part of that package, not just solar, wind and batteries, but also nuclear and other forms of clean energy or carbon neutral energy were part of that plan”

The plant was shuttered in 2022 after more than 50 years of operation. Holtec, a nuclear decommissioning company, bought the plant shortly after with original plans to handle the decommissioning process.

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But proposed funding from the state and federal government may just bring the plant back to life within the next two years. Gov. Gretchen Whitmer said that the plant would provide enough power for 800,000 homes once back online.

Advocates say that diversifying energy production is a good policy for ensuring stability.

“I have solar panels behind my house, and they’re not doing much to power my house today,” said Ed Rivet, executive director of the Michigan Conservative Energy Forum. “I know we need a grid that is diversified and nuclear creates that diversity and anybody who has a goal of wanting to reduce greenhouse gases has to recognize nuclear as necessary.”

Lawmakers say that with enough investment into the industry, Michigan could serve as a future hub for nuclear energy.

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Still, some doubt the safety of nuclear power and the palisades plant specifically. The plant was closed 11 days early in 2022 due to the performance of a control rod seal.

But supporters of nuclear power say that the benefits outweigh the risks.

“Really, if you think about it broadly, (disasters) have been very few and far between, certainly fewer than the sorts of things we’ve seen from coal and fossil burning power over the years, oil spills and that sort of thing,” said Andrews. "

Currently, nuclear is responsible for about 19% of the nation’s energy and 24% of Michigan’s energy. Michigan only has two plants producing power, both in southern Michigan.

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