Michigan nuclear plant shows challenges US safely restart old reactors

COVERT, Mich. — A nuclear power plant on the shores of Lake Michigan is aiming to make history this fall by becoming the first reactor in the U.S. to restart operations after shutting down to be eventually dismantled.

The effort to restart the Palisades plant near South Haven, which shut down three years ago, is a precedent-setting event that could pave a path for other shuttered reactors to come back online.

But Palisades needs major repairs to restart safely, highlighting the challenges the industry will face in bringing aging plants back to life.

Palisades began commercial operations in 1971 during the early wave of reactor construction in the U.S. The plant permanently ceased operations in 2022, one of a dozen reactors to close in recent years as nuclear energy has struggled to compete against cheaper natural gas and renewables.

The owner of the plant, Holtec International, has said it hopes to restart Palisades this fall, subject to approval by the Nuclear Regulatory Commission. The restart project is backed by a $1.5 billion loan guarantee from the Department of Energy, $1.3 billion from the Department of Agriculture, and $300 million in grants from the state of Michigan.

The Energy Department on Monday approved the release of nearly $57 million from the loan, a sign that the Trump administration supports the project amid the turmoil and uncertainty in Washington over federal funding for projects started under the Biden administration.

But Holtec is facing major repairs to Palisades’ aging steam generators that could delay a schedule the NRC has called demanding. Holtec has disclosed to regulators that its inspections have found damaged tubes in the plant’s two generators, which were installed in 1990.

Those tubes are crucial components that protect public health. If a tube ruptures at a nuclear plant, there is a risk that radioactive material will be released into the environment, according to the NRC. Plant owners are required to demonstrate to the NRC that if a tube does fail, any radiological release beyond the plant’s perimeter would remain below what the regulator describes as its “conservative limits.”

“The NRC is scared to death of steam generator tube ruptures. It’s a very real accident. It’s not a hypothetical,” said Alan Blind, who served as engineering director at Palisades from 2006 to 2013 under previous plant owner Entergy.  Blind, who is now retired, said he supports nuclear power but is concerned about the condition of the Palisades plant based on decades of experience in the industry. 

Palisades is currently in a safe condition, NRC spokesperson Scott Burnell said, as the steam generators are not in use because the plant is shut down and defueled.

Holtec President Kelly Trice told CNBC the company has done a “complete…