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A Michigan nuclear plant is looking to make history not once but twice over: First by restarting a reactor shuttered in 2022 and second with newly solidified plans to build the nation’s first small modular reactors.
Holtec International — the nuclear company best known for decommissioning shuttered plants and manufacturing the canisters that store spent fuel — bought the Palisades nuclear plant on the southeastern shore of Lake Michigan a month after utility giant Entergy took the financially troubled single-reactor facility offline.
Last year, the Department of Energy’s Loan Programs Office finalized a deal to give Holtec $1.52 billion to bring the 55-year-old, 800-megawatt pressurized water reactor back online. The company wants to plug the facility back into the grid by the end of this year.
Now Holtec plans to nearly double the electricity output from Palisades by building two of its own small modular reactors, or SMRs, at the site.
On Tuesday, top executives gathered at the facility in Covert Township, Michigan, to unveil blueprints for adding a pair of its proprietary SMR-300s and announce Hyundai Engineering and Construction Co. — the South Korean firm already working with the Florida-based Holtec to develop its 300-MW units internationally — as its partner in the debut U.S. project. Completing the reactor would be a first not just for the country but the company. While Holtec has disassembled reactors, it has yet to build one, much less its own design.
“If we can’t do it, I don’t know who else is going to do it,” Rick Springman, the president of Holtec’s Global Clean Energy Opportunities division, told Canary Media ahead of the event. “I really think we can be the horse America can ride to a clean-energy future and to enable AI and everything else we want to do in this global competition.”
First, Holtec will need the Nuclear Regulatory Commission’s approval of its reactor design.
So far, the U.S. federal regulator has only approved one SMR, Oregon-based NuScale Power’s 50 MW unit. The first plant designed around NuScale’s reactors, a 720 MW station built on property owned by the Idaho National Laboratory to provide power to ratepayers in Utah, was scrapped in November 2023 amid rising costs.
2024 marked a breakout year for nuclear power in the U.S., as Congress passed new legislation to streamline reactor regulations, Microsoft put up $16 billion to reopen the mothballed unit at Pennsylvania’s Three Mile Island, and SMR developers lined up major deals with Amazon and Google.
Yet no SMR developer got the green light from the NRC to become the nation’s second certified design.
“Most of our competitors are essentially offering the technology but don’t want to take any risk,” Springman said.
In other words, those developers will design and license the technology and make money off the intellectual property, he said, but utilities and construction firms must provide the financing, time, and materials.
“You have this stagnation where no one wants to stand behind the project,” Springman said. “Enter Holtec. We can manufacture the parts, build the plant, and arrange the financing for the project. We can also manage the spent fuel … and we can decommission the plant at end of life. We can do the entire spectrum of the project. There’s no U.S. company that can offer all of that.”
Holtec is betting its decades of manufacturing know-how, experience managing complex nuclear projects, and early engagement with federal regulators will secure approval fast enough to construct both its SMRs in the next five years — a breakneck speed by the standards of reactor construction.
The only two new reactors built from scratch in the U.S. in decades were completed at the Alvin W. Vogtle Electric Generating Plant in northern Georgia last spring. The pair of 1,100 MW Westinghouse AP1000s followed the NRC’s part 52 combined licensing pathway, which granted approval to build and operate the reactors. While the approach was meant to get the units online faster than the traditional licensing process, the design tweaks that needed to be made during the first-of-a-kind build required repeatedly going back to the NRC for approvals that delayed the project and helped drive it billions of dollars over budget.
Instead, Holtec said it would follow the traditional part 50 process, which requires the company to obtain the construction and operating licenses separately.
“We prefer part 50 because we believe on a first-of-a-kind project, there’s less regulatory risk and more flexibility in that process to allow for learnings during construction,” Springman said.
Holtec started talks with the NRC five years ago and “over the last three years really stepped up engagement” by submitting white papers and topical reports, he said.
The company said it plans to submit the first part of its construction permit application in the first quarter of 2026 and the second part in the second quarter of 2027, then apply for an operating license in the first three months of 2029.
Thanks to conversations already underway, Springman said, Holtec will have incorporated the NRC’s feedback into its application by the time it submits paperwork. “They know it’s coming, and we have reduced risk from a regulatory perspective,” he said.
Already, Holtec updated the design of its SMR, nearly doubling the output of the proposed machine from 160 MW to the 300 MW model the company is now planning to build. Research by the Massachusetts Institute of Technology suggests the cheapest reactor to build in the U.S. next, however, would be another AP1000, since the design is settled and the size allows power-plant owners to benefit from economies of scale.
“I love the idea of restoring nuclear operation to sites that have lost it, and I love even more building new reactors where we had fewer,” said Mark Nelson, a nuclear engineer and founder of the consultancy Radiant Energy Group. “It’ll be interesting to see whether the right size of reactor is smaller or larger in the future.”
Despite some pushback from antinuclear groups, the project is gaining local political backing. In December, the board of commissioners in Michigan’s Van Buren County voted to support construction of the SMRs.
“I’m thrilled — it’d be historic,” said Shawn Connors, 69, a retired technical publisher who grew up in Kalamazoo, owns a condo in South Haven, about five miles north of the Palisades plant, and now volunteers as an advocate for nuclear power. “Palisades might become the focus of the world because this is where you can have the old [pressurized water reactor] operating and two new SMRs operating right next to it. You’ve got the old and the new right there together.”
NUCLEAR: Eight current or former coal plant sites in Indiana could potentially host small modular nuclear reactors and help the state meet its growing energy demand, according to a new Purdue University study. (Indiana Capital Chronicle)
PIPELINES: Minnesota regulators rescind a permit to rebuild a petroleum pipeline near a culturally significant site to tribes and will require the company to conduct an archeology study after pushback from several tribal nations. (Sahan Journal)
CLIMATE: A U.S. Senate committee is expected to next week consider Trump’s interior secretary nominee Doug Burgum, who championed carbon capture and storage while governor of North Dakota. (Washington Post)
SOLAR:
EMISSIONS: Coal and natural gas plants represent more than two-thirds of the facilities that release the most greenhouse gases across several Midwest states, according to an analysis of federal data. (WFYI)
UTILITIES:
BATTERIES: Western Michigan county officials pass a resolution withdrawing support for a large proposed battery manufacturing plant, citing public opposition to the plan. (WOOD-TV8)
POLITICS: Former Illinois House Speaker Michael Madigan takes the stand during his federal corruption trial, insisting he never traded his public office for private gain, including for former associates who allegedly got jobs at ComEd in exchange for favorable legislation. (Chicago Sun-Times)
WIND: President-elect Trump promises that “no new windmills” will be built in the U.S. once he takes office, despite the industry’s growth in GOP-leaning states like Iowa and his inability to control private-sector investments. (New York Times)
EFFICIENCY: Wisconsin starts rolling out programs for homeowners to secure energy efficiency rebates through the Inflation Reduction Act. (WCCO)
COMMENTARY:
NUCLEAR: Maryland-based Constellation Energy signs a $1 billion deal to provide nuclear power and energy efficiency services to 13 federal agencies, marking the first time the U.S. has used a major energy purchase to support nuclear power as a clean energy source. (Reuters)
ALSO: An energy company threatens to sue federal regulators for denying its proposal to expand an Amazon data center located at a nuclear plant in Pennsylvania. (E&E News, subscription)
CLIMATE:
OFFSHORE WIND:
EFFICIENCY: Massachusetts’ newest energy efficiency plan targets rental properties, covering the entire cost of weatherization in some cities and protecting tenants against rent hikes intended to pay for more efficient heating equipment. (Boston Globe)
SOLAR:
FRACKING: Scientists find contamination in freshwater mussels consistent with the chemical signatures of wastewater produced by fracking in western Pennsylvania. (Inside Climate News)
TRANSPORTATION: A New Jersey judge agrees to hear a request for a last-minute restraining order against New York’s plan to impose a congestion price on cars entering parts of Manhattan starting this weekend. (4 New York)
ELECTRIC VEHICLES: Hearing from building owners concerned about the risk of fire from indoor e-bike charging, New York City expands an initiative allowing multifamily buildings to apply for sidewalk space to install charging cabinets. (Streetsblog)
CLEAN ENERGY: A University of Maryland researcher receives $7.8 million to develop and test a system that uses fermented ocean microbes to power marine sensing devices for scientific or national security applications. (Maryland Today)
Ohio environmental advocates are questioning the intent of a pending state law that would add nuclear power to the state’s legal definition of “green” energy.
House Bill 308’s sponsors say the legislation is meant to signal that Ohio is open for business when it comes to nuclear power research and development, but critics warn the language could have broader implications in the future.
“Legislators don’t just put something into the code unless it has meaning and purpose and value,” said Megan Hunter, an attorney with Earthjustice, one of several environmental groups challenging a similar 2022 state law that classified natural gas as a “green” energy source. “Why would you do this if it has no impact or meaning or effect?”
Critics fear the language could be used to greenwash power plants or divert public funding from renewable energy projects, though the bill’s sponsors deny that motive.
“It doesn’t promise any incentives or anything beyond simply placing nuclear under the category of green energy in the Ohio Revised Code,” said state Rep. Sean Brennan, a Democrat from Parma who co-sponsored the nuclear legislation with Republican state Rep. Dick Stein of Norwalk.
The General Assembly passed the nuclear legislation on Dec. 11. As of Thursday it was awaiting Gov. Mike DeWine’s signature.
Brennan said the question of why the language should be in a law instead of just a resolution didn’t come up in discussions with Stein, who initially asked him to cosponsor the bill.
Stein said the legislation is “about sending a signal to the market that Ohio wants to be a partner and won’t be an impediment,” in contrast to other states that don’t want nuclear energy. He said he hopes it will help attract jobs and federal funding, building on last year’s creation of a state nuclear development authority.
Stein would not speculate on follow-up steps lawmakers might take, saying his term in the House of Representatives ends this month.
Ohio does not currently have state incentives or policy preferences for “green” energy. The state’s renewable energy standard essentially ended in 2019 as a result of House Bill 6, the coal and nuclear bailout law at the heart of the state’s ongoing corruption scandal. Opponents testifying against the current legislation, though, said they worry the definition will be used to water down future clean energy policies.
“HB 308 will enable the manipulation of public funds into private, corporate hands,” said Pat Marida, a coordinator for the Ohio Nuclear-Free Network, in her December 13 testimony. Also, she said, “there is nothing ‘green’ about nuclear power,” referring to radioactive waste, which continues to be stored at power plant sites.
Future state programs might offer funding or other advantages for projects that meet the state’s definition of “green” energy, for example. And even if the definition doesn’t open doors to new government funding, it could provide cover to private companies that want to count gas and nuclear energy toward their climate or clean energy targets, another advocate warned.
“Insidiously, it does potentially become important,” said Nathan Alley, conservation manager for the Sierra Club of Ohio. Many companies have adopted clean energy goals, he noted. “This might telegraph to them that they could invest in nuclear energy and achieve the same climate and/or energy goals as if they invest in solar or wind.”
Ohio lawmakers aren’t the only ones who want to define natural gas and nuclear power as “green energy.” Model legislation finalized by the American Legislative Exchange Council this fall does the same thing. ALEC is a Koch-linked group that has long opposed renewable energy and actions to address climate change.
ALEC’s model bill would have its definition “apply to all programs in the state that fund any ‘green energy’ or ‘clean energy’ initiatives.” Another model ALEC bill would define nuclear energy as “clean energy” and put it on a par with renewable energy.
A coalition of environmental groups is currently challenging House Bill 507, Ohio’s 2022 law that labeled natural gas as “green energy,” arguing in court that the way in which it was passed violated the state constitution. The groups say last-minute amendments violated provisions that require bills to deal with a single subject – the initial two-page bill dealt with chickens – and call for at least three hearings in each house of the General Assembly where lawmakers can hear testimony from supporters and opponents.
That lawsuit has been briefed and is currently awaiting a decision from Judge Kimberly Cocroft at the Franklin County Court of Common Pleas. HB 308 should not affect that case, said Hunter and Alley.
As with HB 507, though, lawmakers added last-minute amendments to HB 308. One of those would extend lease terms for drilling under state park and wildlife areas from three years to five years. That was unacceptable to Brennan, who voted against the Senate amendments when it came back to the Ohio House.
Still, he supports what he views as the main purpose of the legislation: attracting more nuclear power to Ohio. In his view, solar and wind won’t be enough to meet growing energy demands while shifting away from fossil fuels in order to address climate change. “I believe nuclear is going to be hugely important for our energy independence, and hopefully Ohio will become an exporter of electricity in the future.”
Hunter wasn’t surprised that lawmakers made last-minute amendments to the bill. For her, it shows the importance of the ongoing litigation over HB 507.
“Those constitutional protections are there for a reason,” she said. “And seeing the General Assembly have blatant disregard for them again and again harms Ohioans. It deprives them of these constitutional rights.”
NUCLEAR: The Biden administration today plans to release a blueprint for an additional 200 GW of nuclear power by 2050, a proposal that has bipartisan support and is likely to survive the incoming Trump administration. (Bloomberg)
OVERSIGHT:
CLIMATE: White House climate advisor John Podesta tells attendees at the COP 29 summit that “the work to contain climate change is going to continue in the United States” and calls on the private sector and state and local governments to lead the way. (The Hill)
CLEAN ENERGY:
GRID: A company working to cut roughly a year off the grid interconnection process receives a $49.5 million federal grant to roll out its software in eight states. (Canary Media)
OIL & GAS: The EPA finalizes a Biden administration rule to charge fees for venting or flaring natural gas, which, because it is linked to the Inflation Reduction Act, will require congressional approval to overturn. (CNN)
HYDROGEN: Advocates say developers are not listening to their environmental justice concerns as the process of building federally supported hydrogen hubs ramps up in Pennsylvania and other targeted areas. (The Daily Climate)
OFFSHORE WIND: A coalition of East Coast states moves ahead with plans for a compensation fund to mitigate the financial impact offshore wind could have on commercial fishermen. (SeafoodSource)
ELECTRIC VEHICLES: While some analysts predict a “U.S. battery boom” as Trump removes restrictions on mining, others note that policy support across the entire supply chain will be necessary to grow the electric vehicle industry. (E&E News)
POLITICS: As Tesla CEO Elon Musk continues to enjoy outsized influence over the Trump transition, a source reveals he spent nearly $200 million supporting the former president’s reelection. (Al Jazeera, Associated Press)
COMMENTARY: The executive director of the Sierra Club says “we will not go backward” on clean energy, predicting market forces and state opposition will thwart some of Trump’s efforts to roll back climate policy. (Chicago Sun-Times)
NUCLEAR: Worker training is ramping up at a shuttered Michigan nuclear plant that within the next year aims to become the first U.S. reactor to restart after being closed. (Michigan Advance)
CLEAN ENERGY: Midwest clean energy experts say the incoming Trump administration will no doubt usher in a renewed commitment to domestic oil and gas production, but remain hopeful that clean energy investments will continue. (MPR News)
RENEWABLES: Dozens of Michigan communities band together to file a legal appeal of the state’s new renewable energy siting regulations that give final authority over projects to state regulators. (MLive, subscription)
FOSSIL FUELS: The Sierra Club criticizes Wisconsin regulators’ recent approval of We Energies’ rate increases that they say are driven by previous bad investments in fossil fuels. (Wisconsin Examiner)
GRID: The president of grid operator MISO says natural gas plants could be built to meet data centers’ short-term power needs and transition to backup power sources as clean energy plays a bigger role on the grid. (Utility Dive)
UTILITIES:
EMISSIONS: The U.S. oil industry makes five policy requests to the incoming Trump administration, including repealing tailpipe and fuel economy standards that would be key for reducing transportation emissions. (Inside Climate News)
BATTERIES:
SOLAR: A developer reaches an agreement to build two commercial solar projects in Wisconsin before handing over ownership to Wisconsin Public Service Corp. and Madison Gas and Electric. (Solar Industry)
BIOFUELS: A Michigan fuel supplier aims to increase biofuel sales by 2.5 million gallons per year by installing new fuel dispensers with help from a $4.2 million federal grant. (County Press)
NUCLEAR: Shuttered nuclear reactors in Michigan, Iowa and Pennsylvania are the country’s most obvious candidates for restarting, a nuclear expert says, adding that others in the U.S. would be long-shots. (Utility Dive)
POLLUTION: Michigan’s coal-based steel and coke facilities contribute to about 40-80 premature deaths and more than 20,000 asthma cases a year, according to a new report from an advocacy and research group. (Planet Detroit)
BIOGAS: Michigan officials approve hundreds of millions of dollars in tax-exempt bonds that would help Chevron and other entities complete several facilities that convert farm waste to renewable natural gas. (WOOD-TV8)
WIND: Zoning officials in eastern Iowa continue work on a draft ordinance for new wind regulations nearly a year and a half after enacting a moratorium on commercial projects. (Telegraph Herald)
ELECTRIC VEHICLES: An Illinois county board leader resigns from his position after taking a job with a Chinese-owned company that’s building a controversial EV battery plant there. (Chicago Tribune, subscription)
BIOFUELS: The Iowa Sierra Club calls a $1 million federal rural clean energy grant for an ethanol producer a “boondoggle.” (Iowa Capital Dispatch)
SOLAR: Minnesota loses its effort to send back to state court a case claiming a group of companies marketing loans for residential solar panels violated consumer protection laws. (Bloomberg Law, subscription)
CARBON CAPTURE: The U.S. Department of Energy awards $518 million to develop 23 carbon capture and storage projects across 19 states, which are still being negotiated and face environmental review. (E&E News, subscription)
POLITICS: Attorneys for former Illinois House Speaker Michael Madigan and his close associate plan to strongly challenge prosecutors’ theory about Madigan exchanging favorable legislation with jobs for his allies. (Chicago Sun-Times)
STORAGE: Long-duration energy storage startup Form Energy, which is developing a commercial pilot project with a Minnesota utility, recently raised $405 million in capital to scale up the company. (Utility Dive)
GRID: Illinois consumer advocates push back on Ameren’s more than $300 million rate increase request to help pay for grid infrastructure projects, saying the amount is excessive. (WEEK)
COMMENTARY:
BATTERIES: General Motors pledges $625 million to help fund the contested Thacker Pass lithium mine under development in Nevada in an effort to boost battery material’s domestic supplies. (Las Vegas Review-Journal)
ALSO:
OIL & GAS:
BIOFUELS: The U.S. Energy Department tentatively awards a Montana biodiesel refinery $1.44 billion in loan guarantees to produce sustainable aviation fuels from leftover animal fats and greases. (Canary Media)
UTILITIES: Xcel Energy submits its just transition plan to Colorado regulators proposing to replace closing coal plants and meet increasing demand with a mix of new wind, solar, geothermal and gas generators, battery storage and a nuclear reactor. (CPR)
CLIMATE: Legal experts say a 2019 court ruling would probably shield California’s and Washington’s carbon markets from a potential Trump administration’s likely challenges. (E&E News)
CARBON CAPTURE:
WIND: A Bill Gates-backed startup says it has secured $14 million for a proposed wind facility in Wyoming that would use the firm’s horizontal-axis turbines. (Power)
GRID: The Bonneville Power Administration proposes spending about $3 billion on 13 transmission and substation projects designed to bolster its grid to accommodate increasing renewables and growing power demand. (Idaho Capital Sun)
ELECTRIC VEHICLES: Pacific Gas & Electric launches a bidirectional electric vehicle charging program compensating customers for discharging EV batteries back to the grid during high demand. (PV Magazine)
HYDROGEN: A southern California transit agency opens a liquid hydrogen-based fueling station for its bus fleet. (news release)
COAL: Colorado officials launch an effort to extinguish underground coal seam fires in an abandoned mine near Boulder. (CBS News Colorado)
COMMENTARY: A California energy executive calls on local governments to comply with a state law requiring instant residential solar permitting and to force homeowners associations to eliminate red tape for rooftop installations. (Fresno Bee)
NUCLEAR: A Maryland-based company that makes small modular nuclear reactors announces a $500 million round of funding, led by Amazon as it looks for clean energy sources for its increasingly power-hungry data centers. (Washington Post)
ALSO: The owners of the Three Mile Island nuclear plant order a $100 million transformer, a major step in its plan to restart operations. (Reuters)
FOSSIL FUELS: A group of New York prosecutors argues they could press criminal charges against oil companies for their role in fueling hurricanes and other climate disasters. (The Guardian)
BUILDINGS:
HYDROGEN: A large hydrogen fuel production facility in upstate New York was expected to make the state an industry leader, but work on the project has halted and its future is uncertain. (Heatmap News)
EMISSIONS:
OFFSHORE WIND:
CLEAN ENERGY: Massachusetts awards $1.75 million in grants to help cities and towns fund energy efficiency projects, climate planning, and clean energy campaigns. (WWLP)
GRID: Maine utilities make grid updates they say will make the power system more reliable as the number of serious storms increases. (News Center Maine)
COMMENTARY: New York’s $5 billion state energy efficiency program needs to do a better job reaching low-income residents and communities of color, says an environmental justice advocate. (City Limits)
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