The Biden administration announced a $1.5 billion loan to reopen a shuttered nuclear plant for the first time

The Biden administration on Wednesday announced a $1.5 billion loan to restart a nuclear power plant in Michigan.

The loan, made through the Department of Energy's Loan Program Office with Inflation Reduction Act funds, will allow Holtec to restart the Palisades Nuclear Plant in Covert Township. The restoration, if approved by the Nuclear Regulatory Commission, would be the first time the United States has restarted a shuttered nuclear plant.

The plant operated from 1977 until approximately 2022, and was acquired by a Louisiana-based company in 2007. When it is restarted, the Energy Department expects the 800-megawatt Palisades plant to produce power until at least 2051. The state Legislature also appropriated $150. One million dollars to restart the facility. The administration and Michigan State have set a restart goal of late 2025.

“Nuclear power is our largest single source of carbon-free electricity, directly supporting 100,000 jobs across the country and hundreds of thousands indirectly,” Energy Secretary Jennifer Granholm, a former Michigan governor, said in a statement. “President Biden’s Investing in America agenda supports and expands this vibrant clean energy workforce here in Michigan with significant funding for the Holtec Palisades Nuclear Power Plant.”

“Once open, Palisades will be the first successfully restarted nuclear power plant in American history, generating a $363 million regional economic impact and helping Michigan lead a clean energy future,” Michigan Gov. Gretchen Whitmer (D) said in a statement. “I am so grateful to my bipartisan partners in the Michigan Legislature, the Biden-Harris administration, Holtec, and labor for coming together to get this done. Together, we show the world that Michigan is a place where history is made by hardworking people.

The Biden administration has set a goal of a 100% renewable electric grid by 2035. While nuclear power generates almost no carbon emissions, it fell out of favor in the United States in the late 20th century amid concerns about potential accidents, especially after the 1979 war. Island accident Three Mile.