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

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

The plant operated from approximately 1977 to 2022 and was acquired by a Louisiana-based utility in 2007. When brought back online, the Energy Department expects the 800-megawatt Palisades plant to produce power at least until 2051. The state Legislature also appropriated $150. million to recommission the facility. The government and the state of Michigan have set a goal of restarting by the end of 2025.

“Nuclear power is our largest source of carbon-free electricity and directly supports 100,000 jobs across the country and hundreds of thousands more indirectly,” Energy Secretary Jennifer Granholm, the former governor of Michigan, 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 U.S. history, generating $363 million in regional economic impact and helping Michigan lead the clean energy future,” said Michigan Governor Gretchen Whitmer (D). 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 having a 100 percent renewable electricity grid by 2035. Although nuclear power generates virtually no CO2 emissions, nuclear power fell out of favor in the US in the late 20th century due to concerns about potential accidents, especially after the 1979 Three Mile Island accident.

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