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The Palisades nuclear generating station, situated in Covert Township, Michigan, is setting ambitious goals to take a leading role in the future of nuclear energy in the United States. This facility, which has been closed since 2022, aims to develop the country’s first small modular reactor (SMR) by 2030.
Holtec International, the company that owns the Palisades plant, has recently entered into a strategic partnership with Hyundai Engineering and Construction. This collaboration is set to initiate a project to create a fleet of small modular reactors throughout North America, starting with two reactors at the Palisades location. Holtec is also seeking to revive the original Palisades reactor by October, pending the approval of the Nuclear Regulatory Commission (NRC). If successful, this would mark a historic first for the United States, as it would be the initial restart of a decommissioned nuclear plant.
Currently, Holtec’s design for small modular reactors has not yet received licensing from the NRC. To date, there are no operational small modular reactors in the U.S. Holtec joins a number of firms vying for regulatory approval to construct these kinds of reactors, which are expected to provide a more flexible and cost-effective approach to nuclear energy generation.
The technology behind small modular reactors aims to mitigate the high capital expenditures and extended construction durations typically associated with large nuclear projects. Advocates within the nuclear industry are optimistic that these reactors will not only reduce overall construction costs through the prefabrication of components but will also allow for innovative site-specific applications.
Interest in the SMR technology extends beyond the nuclear sector, with major players in the technology industry like Alphabet and Amazon making investments in this area. These companies are on the lookout for sustainable energy solutions to power their expansive data centers, which are essential for artificial intelligence initiatives. Both Alphabet, in conjunction with Kairos Power, and Amazon’s allied firms, have set targets for bringing their respective small modular reactors online by the end of the decade or during the following decade.
To date, the NRC has authorized just one design for a small modular reactor in the U.S. Somewhat exemplary of the challenges faced by nuclear projects, the NuScale Power design in Idaho was scrapped in 2023 after escalating costs rendered it unfeasible.
The progress of the Palisades initiative is being watched closely as it could serve as a blueprint for reviving nuclear energy in the United States. This inspection comes after a period of decline in the industry, with several plants being taken offline due to financial pressures from cheaper natural gas alternatives. The original Palisades plant began operations in 1971, boasting a generating capability of 800 megawatts, enough to supply power to numerous homes. The proposed two 300-megawatt small modular reactors would nearly double the plant’s output capacity.
Holtec’s project is not an isolated effort; Constellation Energy has been monitoring developments at Palisades while also targeting the restart of the Three Mile Island nuclear facility by 2028 through a partnership with Microsoft. Similarly, NextEra Energy is considering reopening the Duane Arnold plant in Iowa.
Despite the hopeful outlook, Holtec faces hurdles in its plans to restart the Palisades plant. Recent inspections revealed more than 1,000 steam generator tubes exhibiting signs of corrosion cracking, which poses significant repair challenges. Holtec’s spokesperson Nick Culp acknowledged that the extent of repairs needed was greater than what the company initially projected. To tackle this issue, Holtec has engaged a third-party expert to implement a “sleeving” technique, which involves inserting a liner into the damaged tubes to provide reinforcement and sealing.
Holtec aims to complete these repairs by midsummer, pending the necessary approvals from the NRC. However, during a meeting on January 14, NRC staff expressed concerns regarding the feasibility of Holtec’s timeline. Eric Reichelt, a senior materials engineer at the NRC, described the company’s proposed schedule as “very, very demanding,” citing limited personnel availability at the agency to manage the workload requested by Holtec. NRC branch chief Steve Bloom also characterized the proposed timeline as “very aggressive,” highlighting community apprehensions regarding the facility’s restart during this meeting.
To support the revival of the Palisades plant, Holtec has secured a $1.5 billion loan from the Department of Energy along with $300 million in financial assistance from the state of Michigan.
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