Michigan – The state of Michigan might soon become the first U.S. state in the history of the country to have a shuttered nuclear plant reopened. This can only become possible if the Biden administration decides to allocate a lot of taxpayers’ money all in the name of green energy. But how we got here?
Biden administration’s ambitious climate goals
The Biden administration is actively working towards reaching its 2035 ambitious climate goals. The goal is to reduce greenhouse gas emissions and transition the United States to a clean energy future, a goal that some states are trying to reach even earlier and are investing a lot toward those targets.
President Joe Biden and the White House administration want carbon-free America by 2035. This means that the country should produce enough electricity to meet the demands while eliminating all fossil fuels from the power grid and relying solely on renewable sources like solar, wind, and geothermal. While these goals seem impossible for millions of Americans who are only seeking cheap and affordable energy, U.S. leaders are confident that 2035 climate goals are can become a reality with the right policies and investments in place.
What has America done so far when it comes to green energy?
In recent years, the country has seen constant increase of solar and wind power energy production, while electric vehicles are becoming frequent on U.S. roads. Tax credits and falling battery costs have further boosted sales resulting in EVs to become first choice to millions of Americans. But getting rid of fossil fuel is difficult task and there still a lot of challenges down the road.
Biden admin wants Michigan nuclear plant reopened
According to a recent report by Bloomberg, the Biden administration is looking forward to the idea to provide $1.5 billion loan to a private company for restoring a nuclear power plant in Michigan. If everything goes according to the plan, the reopening of a shuttered reactor will be the first of its kind in the U.S. history.
President Biden and the White House administration are looking forward to help Holtec International Corp. with a $1.5 billion conditional loan for the restart of the Palisades Nuclear Generating Station. The Biden admin is going to officially submit the offer to the company in February and the funding should be provided via the US Energy Department. If a loan is not provided, Holtec said they would be unable to restart the plant because the process is very expensive. In such case, they plan to decommission the site.
The Biden government is focusing on keeping the country’s nuclear power plants running to reach its big goals for the environment, like making the electricity grid free from carbon by 2035. Since 2013, over twelve nuclear reactors have shut down because they couldn’t compete with cheaper energy sources like natural gas and renewables. The Energy Department has even said that up to half of the country’s nuclear reactors could close because they’re not making enough money.
An official from the Energy Department’s Loan Programs Office didn’t give any details, saying it was a private matter.
“This is a historic opportunity for the country and Michigan,” Culp said. “As we transition away from fossil fuels, nuclear is going to be a critical part of not only reaching our climate goals but doing so in a way that ensures the lights stay on.”
Holtec took over an 800-megawatt power station in 2022 after Entergy Corp. shut it down due to financial issues. However, after Michigan’s Governor Gretchen Whitmer asked, Holtec started to look into reopening it.
The company’s plan to restart got a lift when Wolverine Power Cooperative, a local energy provider, agreed to buy up to two-thirds of the power plant’s energy, starting possibly by late 2025. Yet, they still need the okay from federal nuclear officials.
This money would come from a loan guarantee program aimed at updating old energy facilities, a part of President Joe Biden’s climate initiative. If it goes through, Palisades would be the first nuclear reactor project funded by the Biden administration.