U.S. Energy Secretary Jennifer Granholm said she is “hopeful” about pending loan applications to fund the restart of the closed Palisades nuclear plant in Michigan.
If approved, the approximately $1 billion in federal loans could help pay for the power plant to become the first U.S. nuclear reactor to restart after powering down. Lawmakers are considering $300 million in state funds as part of the effort.
Granholm, a former Michigan governor and now head of the U.S. Department of Energy, made the remark during a congressional hearing on Thursday, May 11, while responding to a question from U.S. Rep. Tim Walberg, R-Tipton. The two federal officials with roots in Michigan talked about the energy transition from fossil fuels to renewable power sources and used the Great Lakes State as an example in their discussion.
Walberg said he questioned how prepared the power grid will be to meet new electrification standards and whether power generation will be able to keep up with growing demand. He pointed to the “mothballing” of the 800-megawatt Palisades nuclear plant that shut down in May 2022 as an example of lost capacity.
Before being closed, the nuclear power plant generated about 5% of Michigan’s total electricity supply.
Granholm agreed with the congressman that it’s important not to create insecurity on the grid. She also confirmed there remains an effort to revive the nuclear power plant in Van Buren County through the federal agency’s loan programs.
“We’re hopeful that that will not reduce supply, and we need more nuclear online,” Granholm said.
Officials with the company that owns the shuttered plant are actively working with the federal government on the loan review process. They remain “confident” and “buoyed by the strong broad-based support” from the local community and state, said Nick Culp, senior manager of governmental affairs for Holtec International, which owns the plant.
“The plant’s repowering is especially important and timely to ensure Michigan has reliable baseload, carbon-free generation to meet future needs, strengthen our energy security, and provide for hundreds of good-paying jobs and economic growth,” Culp said.
This is the company’s second attempt to land federal dollars to restart Palisades. Holtec’s first try failed in November, but the company applied again under a different federal loan program.
Holtec officials said a $6 billion federal initiative to prolong older nuclear facilities, part of President Joe Biden’s infrastructure law, is a primary reason to halt decommissioning and seek a re-start of Palisades. No significant steps have been taken to dismantle the plant.
Nuclear is key to Biden’s goal of an economy with net zero carbon emissions by 2050. Nuclear fission generates no carbon dioxide, the primary greenhouse gas that causes global warming – though fossil fuels are used in mining and refining uranium ore for reactors. Nuclear waste remains lethally radioactive for thousands of years.
Energy experts argue the return of operations at Palisades would both bolster the state’s power supply and help meet Michigan’s climate goals as additional renewable infrastructure such as solar and wind are built out.
Natural gas power plants have provided a greater percentage of the state’s energy supply following the closure of Palisades and some coal-fired generation across Michigan.
“Resumption of power generation at Palisades would be a useful addition to the state’s energy mix. Palisades generated 800 megawatts of emissions-free electricity and provided 4% to 5% of Michigan’s overall electric generation before it closed, making it that much more challenging to reduce greenhouse gas emissions,” said Matt Helm, spokesperson for the Michigan Public Service Commission (MPSC).
Consumers Energy previously purchased the power generated at Palisades, which amounted to about 10% of its peak load. The company bought the natural gas-fired Covert Generating Station near South Haven and an existing methane plant to make up the loss and offset system reliability concerns.
Consumers spokesperson Brian Wheeler said the company is not interested in operating a nuclear power plant again, “but if the power from the plant could provide competitively priced energy for our customers, we would consider working with partners to keep the plant open.”
Yet, some environmental advocates who long criticized Palisades as poorly maintained and dangerous don’t want it resurrected.
They point to years of mechanical problems, including what the Nuclear Regulatory Commission described as among the nation’s worst cases of nuclear fuel container weakening. A degrading seal on a device controlling the atomic reaction led Entergy – the previous plant owner – to close the facility nearly two weeks earlier than planned last year.
Kevin Kamps, radioactive waste specialist for a group called Beyond Nuclear, said Granholm’s remark about being hopeful for federal loan money to restart Palisades was not unexpected given her support for nuclear energy.
“This is not surprising. It is outrageous, though. It is shocking in terms of public safety and health and the environment and security. It’s all of that,” Kamps said.
Holtec officials previously said it will take hundreds of millions of dollars for needed facility renovations and to buy additional nuclear fuel, but Kamps said he doesn’t trust the company to invest in those upgrades. He believes the goal is to simply fire up the old nuclear plant and hope for the best.
“They have no plans to deal with it. They’re just going to keep pushing the envelope and hope that nothing happens, which doesn’t sit well with us, who live downwind,” Kamps said.
The effort to restart the Palisades plant comes as consultants for the state are researching whether Michigan should have more nuclear power plants.
Michigan lawmakers last year asked the MPSC to pursue such a feasibility study and a draft evaluation is expected by year’s end. The Legislature will receive a final report by mid-April next year.
Source: MLive.com
