The United States Department of Energy (DOE) has granted a loan guarantee of up to US$1.52bn for the restart of the 800MW Palisades nuclear power plant in Covert Township, Michigan. The facility is offline since May 2022.
This marks the project as the first one to be given a conditional commitment through the Energy Infrastructure Reinvestment (EIR) programme under the Inflation Reduction Act.
According to DOE, Palisades will be upgraded to operate until at least 2051, avoiding 4.47 million tonnes of carbon emissions per year.
Wolverine Power Cooperative and Hoosier Energy have already secured power purchase agreements (PPAs) with Palisades for energy distribution in Michigan, Illinois and Indiana.
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