COVERT TWP. — Just weeks after signing a power purchase agreement with Palisades Nuclear Plant, a northern Michigan power cooperative is seeking federal funds to support it.
Crain’s Grand Rapids reports Wolverine Power Cooperative has applied for funding through the New ERA initiative from the U.S. Department of Agriculture.
The $9.7 billion grant and loan program was created through the Inflation Reduction Act. It’s meant to help “rural Americans transition to clean, affordable and reliable energy,” according to the USDA website.
More:Power purchase agreement moves Palisades one step closer to restart
Funding can be used for energy efficiency improvements; purchasing, building or deploying renewable energy systems; zero-emission systems; carbon capture storage systems; or to purchase renewable energy.
According to the report by Crain’s, Wolverine could be eligible for up to $970 million.
If approved, Wolverine would use the federal funds to offset costs of the power purchase agreement it signed with Holtec International, the owner of Palisades. Wolverine CEO Eric Baker told Crain’s the funds would “stabilize future rate increases or reduce the price implications” of the deal.
The agreement between Wolverine and Palisades was announced Tuesday, Sept. 12. It states Wolverine will purchase up to two-thirds of the power generated by Palisades, should the plant restart, with the company’s project partner, Hoosier Energy, purchasing the rest.
Although the purchase agreement is an important step on the path to reopen Palisades, there are still important hurdles to jump before bringing the plant online.
Holtec formally submitted a filing with the Nuclear Regulatory Commission on Oct. 6 to restart the plant’s operating license. That’s one of several regulatory actions needed.
Holtec is still awaiting a decision from the U.S. Department of Energy on a loan that’s key to reopening efforts. Holtec officials have targeted August 2025 as a potential reopening date.
Palisades closed for decommissioning in May 2022 after 50 years in operation. The 800-megawatt plant employed around 600 people full-time. A recently published study estimated the closure had an economic impact of over $250 million in Berrien, Cass and Van Buren counties.
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Just months after it closed, an effort to reopen the plant was announced. Holtec’s first loan application failed, but the second, ongoing attempt was launched in early 2023.
Holtec has already secured a $150 million investment from the state. In addition to obtaining the DoE loan and getting approval from the NRC, Holtec will need to rehire and retrain staff.
— Contact reporter Mitchell Boatman at mboatman@hollandsentinel.com.
Read More: Wolverine hopes to bolster Palisades power agreement with federal funds