The Palisades nuclear power plant aims to reopen in October, but the steam generators need major repairs that could delay the schedule.
The Palisades nuclear power plant in Covert, Michigan, Feb. 24, 2025. Spencer Kimball | CNBC COVERT, Mich. — A nuclear power plant on the shores of Lake Michigan is aiming to make history this fall by becoming the first reactor in the U.S. to restart operations after shutting down to be eventually dismantled. The effort to restart the Palisades plant near South Haven, which shut down three years ago, is a precedent-setting event that could pave a path for other shuttered reactors to come back online. But Palisades needs major repairs to restart safely, highlighting the challenges the industry will face in bringing aging plants back to life. Palisades began commercial operations in 1971 during the early wave of reactor construction in the U.S. The plant permanently ceased operations in 2022, one of a dozen reactors to close in recent years as nuclear energy has struggled to compete against cheaper natural gas and renewables. The owner of the plant, Holtec International, has said it hopes to restart Palisades this fall, subject to approval by the Nuclear Regulatory Commission. The restart project is backed by a $1.5 billion loan guarantee from the Department of Energy, $1.3 billion from the Department of Agriculture, and $300 million in grants from the state of Michigan. The Energy Department on Monday approved the release of nearly $57 million from the loan, a sign that the Trump administration supports the project amid the turmoil and uncertainty in Washington over federal funding for projects started under the Biden administration. But Holtec is facing major repairs to Palisades' aging steam generators that could delay a schedule the NRC has called demanding. Holtec has disclosed to regulators that its inspections have found damaged tubes in the plant's two generators, which were installed in 1990. Inside the control room at the Palisades nuclear power plant in Covert, Michigan, Feb. 24, 2025. Spencer Kimball | CNBC Those tubes are crucial components that…