U.S. Nuclear Regulatory Commission (NRC) Chair Christopher Hanson told U.S. Rep. Tim Walberg (R-Tipton, Michigan) environmental reviews are going well. He said the agency is reviewing the regulatory filings submitted by Holtec International and expects to have a decision next May.

“I would hope from our side, at least on the regulatory issues we’ve got, that we’re going to be done in less than a year,” said Hanson.

The latest update came during a Congressional hearing this week.

Palisades, the 800 MW facility in Covert Township, Michigan, would be upgraded to produce baseload power until at least 2051.

Holtec acquired the plant in June 2022 just after it was shut down. In early 2023, the company for federal loan funding to repower Palisades, which it received in the form of a $1.5 billion loan.

In May Holtec announced several milestones, including re-establishing the plant’s workforce, revitalizing training programs, procurement of plant systems and components, regulatory developments and firming up of funding streams. Holtec said more than 360 employees were working at the plant, an increase of nearly 150 personnel since the re-start began. The recruitment includes both former plant employees and new hires.

In addition to the main 800 MW reactor, Holtec intends to use the Palisades site as the location for its first two small modular reactor units, which would potentially add an additional 800 MW of generation capacity at the site.

A primary goal is to reduce project risks associated with large nuclear builds. The White House announced the creation of a “Power Project Management and Delivery working group” made up of experts that would help identify opportunities to proactively mitigate sources of cost and schedule overrun risk.

Cost and schedule overruns are a major hurdle for new nuclear projects. Plant Vogtle Units 3 and 4 in Georgia were the first nuclear reactors built in the U.S. in more than 30 years. The effort, led by Georgia Power, cost billions more and took years longer than originally projected.

Working group members would be made up of federal government entities, including from White House and the Department of Energy (DOE).  The group would also include a range of stakeholders, including project developers, engineering, procurement and construction (EPC) firms, utilities, investors, labor organizations, academics, and NGOs.

The U.S. Army also notably announced that it would soon release a Request for Information (RFI) to inform a deployment program for advanced reactors that would power multiple U.S. Army sites. 

Small modular reactors (SMRs) and microreactors could provide defense installations resilient energy for several years amid the threat of physical or cyberattacks, extreme weather, pandemic biothreats, and other emerging challenges, the White House said.

The Army’s efforts would “help inform the regulatory and supply chain pathways that will pave the path for additional deployments of advanced nuclear technology” for federal installations and other critical infrastructure.

Nuclear power has seen increased support in recent years (in the U.S. and elsewhere) for its ability to supply uninterrupted carbon-free power in the face of decarbonization goals and soaring electricity demand.

Recent policy has thrown large, conventional reactors a lifeline. For example, the Diablo Canyon plant in California is leveraging DOE’s Civil Nuclear Credit program to fund the plant’s life extension. In Michigan, the Palisades plant would be the first U.S. nuclear facility to restart after shutting down. Holtec plans to reopen Palisades and is supported by a $1.5 billion conditional loan commitment from DOE.

A production tax credit from the Inflation Reduction Act (IRA) offers existing nuclear plants support to continue operating.

There are also more than three dozen working designs for small modular reactors and microreactors, some of which have goals to be commercially operable by 2030. Proponents say these smaller advanced reactors offer cheaper and faster build times. However, this promise has yet to be fully tested.

Overall though, Wednesday’s announcement from the White House is yet another example of positive momentum for the industry.

“The U.S. government will continue to take action to enable first movers to deploy advanced and innovative technologies,” the administration said.

Nuclear power represented 19% of the total electricity produced in the U.S. in 2023.

Palisades is on track to become the U.S.’ first shut-down nuclear power plant to be recommissioned. The 800 MW facility in Covert Township would be upgraded to produce baseload power until at least 2051, subject to U.S. Nuclear Regulatory Commission (NRC) licensing approvals. 

Holtec said more than 360 employees now work at the plant, an increase of nearly 150 personnel since the re-start began. The recruitment includes both former plant employees and new hires.

For its training program, Holtec has reconstituted its control room simulator and restored its operator training program. The company said 26 Palisades Licensed Operators are currently completing requalification classes to maintain their federal operating licenses and two initial Operator classes are in session, with a third Operator class in the pipeline to begin later this year.

Holtec is also undertaking plant work, including refurbishment of the generator exciter and restoration of the reactor vessel’s operational integrity in preparation for a deep chemical cleaning of the plant’s reactor cooling system. In the near future, Holtec said it will conduct an inspection of the reactor vessel internals and steam generators, along with long-term investments in preventive maintenance, equipment repairs, replacements, upgrades, and modifications.

Holtec says it has made “significant” progress in the regulatory space towards reauthorization of extended operations, including submitting five of the major licensing submittals to the U.S. Nuclear Regulatory Commission (NRC).

Holtec acquired the plant in June 2022 just after it was shutdown. In early 2023, the company for federal loan funding to repower Palisades. Palisades is the first project to be offered a conditional commitment through the Energy Infrastructure Reinvestment (EIR) program from the Inflation Reduction Act (IRA). EIR can finance projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or greenhouse gas emissions.

In addition to the main 800 MW reactor, Holtec intends to use the Palisades site as the location for its first two small modular reactor units, which would potentially add an additional 800 MW of generation capacity at the site.

The announcement came from Former Michigan Governor and current Secretary of Energy Jennifer Granholm, who toured Palisades Wednesday morning.

While the conditional commitment from DOE’s Loan Programs Office (LPO) demonstrates intent to finance the restart, Holtec must satisfy certain technical, legal, environmental and financial conditions before the Department enters into definitive financing, DOE said.

Still, the momentum points to Palisades becoming the first shut-down nuclear power plant to be recommissioned in the U.S. The 800 MW facility in Covert Township would be upgraded to produce baseload clean power until at least 2051, subject to U.S. Nuclear Regulatory Commission (NRC) licensing approvals. 

“This is a triumph for the United States in our collective pursuit of a clean and dependable energy future,” said Dr. Kris Singh, Holtec President and CEO.

Holtec acquired the plant in June 2022 just after it was shutdown. In early 2023, the company for federal loan funding to repower Palisades. That was followed by a rigorous review of the loan application by the DOE and third-party advisors to consider technical, market and regulatory aspects, among others. Holtec officials said repowering Palisades was always going to be contingent on receiving federal funding.

Since the plant’s infrastructure already exists, the repowering project will not involve traditional major construction activities, but it will require inspections, testing, refurbishment, rebuilding and replacement of existing equipment, DOE said.

Holtec has also applied to reauthorize the Palisades operating license with the NRC. The company has submitted three licensing requests in pursuit of license reauthorization and anticipates submitting the remainder in spring 2024.

The Biden Administration is supportive of nuclear energy, believing it will play a critical role in reaching U.S. goals of a 100% clean electric grid by 2035 and a net-zero emissions economy by 2050. Since 2022, nearly two dozen states have considered legislation or enacted policies supportive of nuclear.

Support has been especially vocal for re-opening Palisades. In May 2023 a bipartisan group of Michigan lawmakers that make up a newly-formed nuclear energy caucus wrote a letter to Gov. Gretchen Whitmer expressing “full support” for the reopening of the plant. Whitmer herself has supported reopening Palisades as more solar and wind power infrastructure is built out.

Palisades is the first project to be offered a conditional commitment through the Energy Infrastructure Reinvestment (EIR) program from the Inflation Reduction Act (IRA). EIR can finance projects that retool, repower, repurpose, or replace energy infrastructure that has ceased operations or enable operating energy infrastructure to avoid, reduce, utilize, or sequester air pollutants or greenhouse gas emissions.

Holtec has already signed long-term Power Purchase Agreements (PPAs) for the full power output of Palisades with rural electric co-ops Wolverine Power Cooperative and Hoosier Energy in Michigan, Illinois and Indiana.

In addition to the main 800 MW reactor, Holtec intends to use the Palisades site as the location for its first two small modular reactor units, which would potentially add an additional 800 MW of generation capacity at the site.

Palisades began commercial operation in 1971.

While nuclear power could expand its role in the generation mix, unresolved obstacles remain, according to a study presented to the Michigan Public Service Commission (MPSC).

Gov. Gretchen Whitmer and state lawmakers had directed an outside consulting group, ENERCON Services East, to study the feasibility of nuclear power in Michigan. The study considered the advantages and disadvantages of nuclear energy and included evaluations, conclusions and recommendations on design characteristics, environmental impact, engineering and more.

Disadvantages cited in the study included high upfront capital costs, lengthy project development timelines, community concerns and no national resolution to the issue of permanent disposal of spent nuclear waste.

Despite tax credit benefits, the “initial cost of [First-of-a-kind] nuclear deployments is expected to be substantial for the first movers, with followers positioned to reap the benefits from lessons learned and increased supply chain efficiencies leading to lower costs for follow-on deployments,” study authors said.

To remove this roadblock for first movers, Michigan could consider pooling financial support with other states interested in adding nuclear power, the authors said.

Some of those costs of building new nuclear projects could be recouped through long-term economic impacts in local economies and increased tax payments, the authors also said.

The ENERCON report also noted the advantages of building more nuclear, including its emission-free nature and the relatively small amount of land needed for projects

Authors said a hypothetical nuclear plant in Consumers Energy territory could reduce annual emissions by 1.2 million tons of carbon dioxide, 6.2 tons of sulfur dioxide and 197 tons of nitric oxide.

Continuing existing nuclear power generation will be necessary to meet carbon-free energy goals, the report noted.

You can read ENERCON’s full report here.

Michigan is also the location of Palisades Nuclear plant, which was retired in 2022. State lawmakers have supported re-opening the shuttered 800 MW facility, but the undertaking requires regulatory approval and federal funding.

Owner Holtec International has applied for the latter, and recent reports suggest the company will receive the funding, in the form of a $1.5 billion loan.

Michigan also included $150 million to restart the plant in its latest budget passed in June 2023.

In January Holtec told us it hoped to bring Palisades back up to full operation toward the end of 2025.

This comes following reports that the federal government intends to offer a $1.5 billion loan to Holtec International to restart the plant. Palisades would be the first successfully restarted nuclear plant in the U.S. if the plan is fulfilled.

The proposed budget includes a one-time general fund for a $150 million targeted investment to support efforts to reopen the 800 MW plant in Covert Township, Michigan, following the initial $150 million approved for the 2023 budget. Holtec International bought the plant in 2022 and has applied for federal dollars to help get the plant running again.

In early 2023, Holtec applied with the U.S. Department of Energy’s Loan Programs Office for federal loan funding to repower Palisades, and the Biden Administration has expressed support for extending the lives or even restarting large nuclear plants. These facilities have been retiring over the last decade because of competition from cheaper natural gas and renewables.

There is currently a $6 billion fund aimed at supporting the continued operation of U.S. nuclear plants or the reviving of already closed ones. The Civil Nuclear Credit (CNC) Program was born out of the infrastructure bill signed into law in November 2021.

Any restart of Palisades is contingent on federal dollars coming through. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

Holtec will officially be offered the federal loan as soon as next month, sources told Bloomberg.

In September 2023, Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement, where Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric cooperatives. Indiana-based Hoosier Energy, another G&T Cooperative, would purchase the rest.

In early 2023, Holtec applied with the U.S. Department of Energy’s Loan Programs Office for federal loan funding to repower Palisades, an 800 MW plant in Covert Township, Michigan. Holtec had acquired the plant in June 2022 just after it was shutdown.

The Biden Administration has expressed support for extending the lives or even restarting large nuclear plants. These facilities have been retiring over the last decade because of competition from cheaper natural gas and renewables.

There is currently a $6 billion fund aimed at supporting the continued operation of U.S. nuclear plants or the reviving of already closed ones. The Civil Nuclear Credit (CNC) Program was born out of the infrastructure bill signed into law in November 2021.

Any restart of Palisades is contingent on federal dollars coming through. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

Holtec will officially be offered the loan as soon as next month, sources told Bloomberg.

A spokesperson with Holtec would not confirm or deny Bloomberg’s reporting.

“We hope for a timely approval of our loan application to bring the plant back to full power operation toward the end of 2025,” the spokesperson said. “We will not speculate on anticipated timing but are hopeful to hear a favorable decision in the near future.”

In May 2023 a bipartisan group of Michigan lawmakers that make up a newly-formed nuclear energy caucus wrote a letter to Gov. Gretchen Whitmer expressing “full support” for the re-opening of Palisades.

Whitmer herself has supported reopening Palisades, a carbon-free baseload generating source as more solar and wind power infrastructure is built out.

Michigan also included $150 million to restart the plant in its latest budget passed in June 2023.

In September 2023, Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement, where Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric cooperatives. Indiana-based Hoosier Energy, another G&T Cooperative, would purchase the rest.

In a new report, the Institute describes SMRs as vital for achieving net zero by 2050 but while the concept has been gaining traction across the world for quite a while, overall progress in the sector over the last 10 to 15 years has been modest.

Moreover the emerging sector faces a complex interplay of technological, economic, and geopolitical factors that influence and to some extent constrain the technology adoption and scalability.

Market prospects

An estimated 70 SMR designs are believed to be in development currently, with potential market segments including both on-grid and off-grid power supply, advanced co-generation, and transport applications.

While optimistic forecasts have suggested that the global SMR fleet could reach around 350GWe by 2050, the Institute’s base case scenario estimates it “more realistically” in the region of 150-170GWe.

Nuclear’s Evolution is an educational track at the POWERGEN International® exhibition and summit, which serves as an education, business and networking hub for electricity generators, utilities, and solution providers engaged in power generation. Join us from January 23-25, 2024, in New Orleans, Louisiana!

The Institute anticipates that few SMRs will start operating before 2030 and for the first wave of deployments to occur around 2030-2035, predominantly featuring light water generation III+ designs.

Those projects are likely to face delays averaging 1-3 years, along with significant cost overruns compared to initial schedules and estimates.

Advanced (generation IV) SMRs, despite ambitious targets, are likely to encounter more substantial delays due to more complex licensing, supply chain, and fuel supply issues.

While some demonstration units may still come online by 2030-2035, full-scale first-of-a-kind deployment and subsequent series factory manufacturing are more likely to materialize closer to 2040.

The Institute also states that if current trends persist, in the context of regulatory and geopolitical fragmentation, Russian and Chinese designs are poised to dominate with nearly 40% of the global SMR fleet by capacity.

For example, Russia’s Rosatom, with pre-selected designs including the Gen III+ RITM-200 and Shelf-M and Gen IV SBVR-100, is set to replicate its success in large reactor exports. Supported by government subsidies and export finance, and offering a ‘plant-as-a-service’ model, Rosatom is expected to surpass 7GWe of operational SMR capacity by 2040.

China, set to launch the world’s first onshore SMR unit with Linglong One (ACP100), will see this design, along with Hualong One (HPR1000), as a flagship export. Backed by state support, China’s SMR designs are expected to comprise 6.5GWe by 2040, scaling up to over 30GW by 2050, with export priorities along the Belt and Road Initiative (BRI).

Support for SMR programs

The report suggests that to compete with Russia and China, OECD countries should consider equivalent support for their SMR programs.

Recommendations are:
● Supply-side support should be complemented with strong demand-side incentives, targeting priority applications like coal-fired power station replacement and diesel generation replacement for larger off-grid customers.

● All remaining restrictions should be removed on SMR-based clean energy solutions by international development institutions along with export finance options being streamlined and international trade advocacy services offered.

● Nuclear regulators should be encouraged to collaborate in developing at least partial common standards, with mutual recognition of pre-licensing design and factory certification for SMRs, as well as to share knowledge, information, and expert networks, particularly regarding innovative technologies.

● Firms should be encouraged to form competitive global alliances combining vendors, potential international plant operators, and key supply chain partners capable of competing with Russian and Chinese national champions in the ‘plant-as-a-service’ lifecycle energy solutions segment.

“The world needs an initiative of the magnitude of the Marshall Plan to help the most carbon-intensive regions replace their aging coal-fired plants with SMRs,” says NNWI Chairman Tim Yeo.

“Policy support for SMR technologies must be ramped up and carefully targeted to ensure we meet our mid-century net zero goals and facilitate timely completion of the clean energy transition.”

Top SMR projects

The report also identifies the 25 top projects that, due to a combination of business and technological performance drivers, are most likely to be deployed and secure a significant market share by mid-century.

In light of intense internal and external competition and the limited size of the market, first-mover advantage will be critical, with rapid series deployment driving success in the SMR market, the report emphasizes.

Late entrants, even those with more advanced technology, are likely to find it harder to scale up.

First movers with demonstration plants expected to become operational around 2030, in addition to the Russian RITM-200 and China’s Linglong One, are NuScale’s VOYGR and GE-Hitachi’s BWRX-300 boiling water reactor.

Other designs with deployment prospects closer to 2035 include the Rolls-Royce SMR in the UK, EDF’s NUWARD project in France, the SMART SMR from KAERI and BANDI-60 from KEPCO in South Korea, and Holtec’s SMR-300 and Westinghouse’s AP300 in the US.

Originally published by Jonathan Spencer Jones in Power Engineering International.

Holtec purchased the shuttered Palisades plant in 2022 and wants to restart it. Twin SMR-300 reactors would each add 300 MW of power at the site in Covert Township, Michigan. The existing Palisades plant went into operation in 1971 and generated 800 MW before it was retired.

Holtec’s SMR is a pressurized water reactor producing around 300 MW of electrical power or 1050 MW of thermal power for process applications. Holtec said it has undergone several design evolutions since 2011, including the incorporation of forced flow capability overlayed on gravity-driven flow in the plant’s primary system.

Nuclear’s Evolution is an educational track at the POWERGEN International® exhibition and summit, which serves as an education, business and networking hub for electricity generators, utilities, and solution providers engaged in power generation. Join us from January 23-25, 2024, in New Orleans, Louisiana!

Holtec said the existing large-reactor plant is refurbished with an array of enhancements, and the company is targeting a return-to-service date for the end of 2025.

The plant’s restart has received bipartisan support, including from Michigan Gov. Gretchen Whitmer. The state also included $150 million to restart the plant in its latest budget.

Holtec has asked the NRC to reinstate its operating license for the plant and to re-hire staff.

But the effort needs federal funding, expected to be the primary investment in the plan’s restart. Holtec hopes to tap a $6 billion fund at the Department of Energy earmarked to preserve the U.S. nuclear reactor fleet and associated jobs.

Federal energy officials are still reviewing the company’s $1 billion grant application. Holtec officials have been quoted as saying it would take hundreds of millions of dollars for facility renovations and to buy nuclear fuel.

In September, Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement involving the plant. Wolverine would purchase up to two-thirds of the power generated by Palisades for its Michigan-based member rural electric cooperatives. Indiana-based Hoosier Energy, another G&T Cooperative, would purchase the rest.

The filing of the Construction Permit Application for the two SMRs is targeted for 2026, shortly after the existing Palisades plant would return to service.

The company participated in a public meeting Nov. 1 with U.S. Nuclear Regulatory Commission (NRC) staff to discuss the matter. Holtec is hoping to obtain a Limited Work Authorization and Construction Permit application from NRC.

Holtec’s SMR-160 is a pressurized light-water reactor, generating 160 MWe/525 MWt using low-enriched uranium fuel, which could also produce process heat for industrial applications and hydrogen production.

It’s unclear how many SMR units Holtec plans to pursue at the Palisades site.

“Our company will continue to engage the agency as we work through pre-application activities,” a statement sent by Holtec reads in part. “The company has previously observed that former power plant sites – both nuclear and non-nuclear – may be ideal candidates for citing SMR, such as at Palisades.”

Holtec is targeting the end of the decade for SMR deployment.

The company acquired Palisades nuclear plant in June 2022 just after it was shut down. Holtec wants to restart the plant, but this is contingent on federal dollars to get the plant up and running again. In early 2023, Holtec applied with the U.S. Department of Energy’s Loan Programs Office for federal loan funding to repower Palisades.

Federal energy officials are reviewing the $1 billion grant application, expected to be the primary investment in the nuclear plant restart.

In September Holtec and Wolverine Power Cooperative announced the signing of a long-term power purchase agreement that would allow the restart of the 800 MW plant.