The U.S. Department of Energy released an $83.2 million loan disbursement to Holtec International on Thursday, bringing total federal funding to $335.1 million as the company moves toward completing America’s first commercial nuclear reactor restart. The fifth installment under DOE’s $1.52 billion loan guarantee follows key Nuclear Regulatory Commission (NRC) approvals that authorized Holtec to transition the 805-MW Palisades Nuclear Plant from decommissioning status back to an operating license.
The Palisades plant, sited in Covert Township, Michigan, was originally shut down in May 2022 and is set to return to service and operate until at least 2051. It could mark the first-ever recommissioning of a retired nuclear power plant in U.S. history. Holtec acquired the plant in June 2022 initially for decommissioning but pivoted to restart planning by late 2023 after securing federal and state support.
DOE’s Loan Programs Office (LPO) has now disbursed funds across five tranches since achieving financial close in September 2024: $38 million (January), $56.8 million (March), $46.7 million (April), $100.5 million (June), and $83.2 million (August). The loan guarantee operates under the Energy Infrastructure Reinvestment program’s Title XVII Clean Energy Financing Section 1706, established through the Inflation Reduction Act.
While finalized under the Biden DOE in September 2024, the Trump administration has maintained disbursement schedules, framing Palisades as a cornerstone of Executive Order 14302, “Reinvigorating the Nuclear Industrial Base”. The May 2025 executive order calls for 300 GW of new U.S. nuclear capacity by 2050 and establishes 18-month regulatory timelines for reactor licensing decisions.
NRC’s Historic Reauthorization
On July 24, the NRC issued an order consenting to the direct transfer of the Renewed Facility Operating License (RFOL, No. DPR-20) and the general license for the Palisades Independent Spent Fuel Storage Installation from Holtec Decommissioning International to Palisades Energy—marking the first time in U.S. history that a decommissioned commercial reactor has been approved to return to service.
The NRC’s Safety Evaluation concluded that Holtec’s December 6, 2023, transfer application and subsequent supplements met all Atomic Energy Act and 10 CFR 50.80, 72.50, and 50.90 requirements, ensuring “reasonable assurance that the activities authorized by the proposed license amendment can be conducted without endangering the health and safety of the public.” During its review, staff examined the project’s technical specifications, aging-management programs, security and safeguards plans, and financial qualifications for Palisades Energy to assume operating authority.
“This is a proud and historic moment for our team, for Michigan, and for the United States,” said Holtec International President Kelly Trice. “The NRC’s approval to transition Palisades back to an operating license represents an unprecedented milestone in U.S. nuclear energy. Our mission remains clear: to restart Palisades safely, securely, reliably, and in support of America’s energy future – while supporting local jobs and economic growth for decades to come.”
The NRC’s order and conforming Amendment No. 275 took effect immediately upon issuance on July 24, 2025, and must be implemented within 60 days, though the order does not specify a hard start‐up date for Palisades’ return to service. Instead, it authorizes Palisades Energy to load fuel and transition licensed operators to on-shift status once all exemption and license amendment conditions are met. Holtec informed the NRC that the transfer would close on July 24, 2025, and readiness work—including inspections, component replacements, and control-system upgrades—is already underway under the renewed operating license.
The project operates under the original operating license, which is set to expire on March 24, 2031. Holtec is planning to file for a 20-year license renewal by Q1 2026. The restart timeline remains subject to completion of remaining NRC licensing actions and final inspection approvals, though Holtec has indicated readiness for fuel loading as early as August 25, 2025.
Holtec has noted that about 600 full-time nuclear professionals are onsite at Palisades and supported by approximately 1,000 skilled trades workers, vendors, and suppliers. “Backed by strong bipartisan support from federal, state, and local partners, underpinned by long-term power purchase agreements with key business partners, the restart effort is also a testament to the commitment of the surrounding community—whose belief in Palisades helped make this milestone possible,” the company said.
Beyond the main reactor restart, Holtec launched “Mission 2030” in February 2025, which targets deployment of two SMR-300 small modular reactors at the Palisades site by 2030. The company has invested over $50 million in site preparation, environmental studies, and groundwater monitoring for the SMR project. Through an expanded partnership with Hyundai Engineering & Construction, Holtec is seeking to build a 10-GW fleet of SMR-300s across North America through the 2030s.
The Palisades restart comes amid a flurry of high-profile corporate and state‐level commitments to revive idled U.S. reactors. In June 2025, Constellation Energy, backed by a 20-year PPA with Microsoft, celebrated progress toward a targeted restart as early as 2027 of the Crane Energy Center (previously known as Three Mile Island Unit 1) in Pennsylvania under PJM’s expedited interconnection approval. Constellation reports the site, now 64% staffed with nearly 400 hires, has completed major system inspections and training upgrades. It has also submitted key licensing amendments to the NRC. Constellation now plans to pursue a license to extend operations to at least 2054 and expects the plant to be ready for service at least by 2028.
—Sonal Patel is a POWER senior editor (@sonalcpatel, @POWERmagazine).
