The U.S. Department of Energy announced the allocation of $57 million out of a potential $1.52 billion loan guarantee for Holtec's Palisades nuclear plant in Michigan. Holtec aims to restart the plant as the first commercial reactor in the U.S. after shutting down operations. This loan guarantee is part of the Biden administration's support for nuclear energy to combat climate change and meet the increasing electricity demand from various sources.

This disbursement marks the second installment of funding for the conditional loan guarantee for Palisades, a deal that the department's Loan Programs Office finalized the previous year. Energy Secretary Chris Wright stated that this move aligns with former President Trump's vision to boost domestic energy production, enhance security, and reduce costs for the American populace.

Palisades, an 80-megawatt reactor, was closed by Entergy in 2022 due to a control rod malfunction, despite federal efforts to rescue struggling nuclear plants. Holtec plans to reopen the plant by the end of this year, pending permits from the Nuclear Regulatory Commission. The company is currently fixing steam generators at Palisades, addressing maintenance issues overlooked during the shutdown operation.