How the restart of a decommissioned nuclear power plant should work
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A decommissioned nuclear power plant in Michigan could soon be given a second life thanks to a billion-dollar loan from the US Department of Energy – and not only in the USA, but also in Europe, people are watching closely. If the project, which is expected to cost a total of 1.4 billion euros, succeeds, it would be the first nuclear power plant in the United States to experience such a rebirth. The Palisades Power Plant was shut down on May 20, 2022 after 50 years of producing low-carbon electricity. Now it has a new owner, Holtec International – and he believes that the economic conditions have improved so much in recent years that a restart is worthwhile. It is already planned until the end of 2025.
Success would be an important milestone for the US nuclear power fleet. The reactor plant’s 800 megawatts of output could help the country come closer to its climate goals. But putting it back into operation is technically complex. It’s not enough to simply flip a switch for Palisades to get back up and running. There are still a lot of technical, administrative and regulatory hurdles to overcome before this happens. Here are the key points.
Step 1: Be ready!
One of the main reasons Palisades has any chance of getting back online is the fact that the plant’s new owner had been planning to do so for years. “Technically, all the stars are aligned for the power plant to come online,” said Patrick White, research director at the Nuclear Innovation Alliance, a nonprofit nuclear industry think tank. The company Holtec International actually equips nuclear reactors and disposes of used fuel. It also shuts down existing systems upon request. This was originally planned for the Palisades power plant, but after the purchase the decision was changed. The facilities were not dismantled and decontaminated – like the company’s other projects, including the Indian Point Energy Center in New York.
That’s a stroke of luck. Because of the changing economic conditions, the continued operation of many, especially smaller, nuclear power plants was no longer considered justifiable. Those with a single, relatively small reactor – like Palisades – were most at risk. And once a nuclear power plant is shut down, it can quickly become difficult to get it back into operation. As with a car that is parked in the yard, says expert White, “you have to expect certain impairments.” Maintenance and testing of critical systems are reduced or stopped altogether. Backup diesel generators, for example, need to be inspected and tested regularly while a reactor is in operation, but they are unlikely to be maintained in the same way after a power plant is shut down, he says.
Holtec took over Palisades in 2022, after the reactor had been shut down and nuclear fuel had already been removed. Even then, there were calls to keep the power plant’s fossil-free electricity on the grid, says Nick Culp, senior manager for government relations and communications at Holtec. The company then quickly switched gears and decided to keep the power plant open. The necessary maintenance work and safety accounting were largely continued. “The plant looks like it was shut down yesterday,” Culp said.
Nevertheless, the time and resources required to restart the system are not that great. It is more likely to be a restart after a refueling or maintenance stop than a commissioning of a completely shut down system. Once maintenance is completed and loaded with fresh nuclear fuel, the Palisades reactor can restart and provide enough fossil-free electricity for approximately 800,000 homes.
Step 2: Money and Permits
Nevertheless, the project costs a lot of money. The state of Michigan has already provided 276 million euros to restart the power plant over the last two years. Added to this is the conditional billion dollar loan from the US Department of Energy in Washington. Holtec must meet certain technical and legal conditions in order to receive the money, which ultimately has to be repaid with interest. (Details about the exact conditions were not communicated.)
The federal funds and loan from Washington will help finance the repairs and upgrades needed to restart the plant. Around 260 employees continued to work at the company even after the shutdown and are happy about their regular salary. When Palisades returns to normal operations, around 700 people will work here. Holtec is currently looking for new employees to help with the restart.
However, one of the biggest question marks in connection with a possible restart remains the approval of the regulatory authorities. The US nuclear regulator Nuclear Regulatory Commission (NRC) has not yet formulated a precise path for the re-approval of a discontinued power plant operation. “We are breaking new ground here,” comments Jacopo Buongiorno, professor of nuclear engineering at MIT, who is observing the project.
In addition, Palisades practically gave up its operating license when it was shut down and the nuclear fuel was removed from the reactor. Holtec must now submit detailed plans to the NRC showing how the company plans to commission and operate the plant safely in the future. The project has already begun: Holtec formally initiated the application for re-authorization of operations with the NRC in October 2023 and now plans to submit the remaining documents this year.
Step 3: Win for everyone?
If the US regulator and the local bureaucracy give the green light, Palisades should be back in operation by the end of next year. The supply of fuel elements is already secured. In addition, Holtec has long since found long-term buyers for the power plant’s full output, says Culp. And it’s about a long time horizon: If everything runs smoothly, the power plant could continue to generate electricity until at least 2051 – a full 80 years after it was originally commissioned. That should pay off.
And Palisades is a real trend. The increased promotion of fossil-free electricity sources in the USA, particularly nuclear energy, has already helped to extend the life of older power plants in the USA. “Restarting a nuclear power plant represents a game-changer in our support for clean electricity,” said Julie Kozeracki, a senior advisor to the U.S. Department of Energy’s loan program.
The majority of people are not afraid of nuclear power. According to a Pew Research Center survey last year, 57 percent of Americans actually support more nuclear energy in the country. In 2016 it was only 43 percent. In addition, more and more funds are available, including billions of dollars in tax credits for nuclear energy and other low-carbon energy sources – as part of Democrat Joe Biden’s Inflation Reduction Act (IRA). Growing government support and rising electricity prices from other sources are making existing nuclear power plants much more valuable than they were a few years ago, says nuclear engineer Buongiorno from MIT. “Everything has changed.”
But even if Palisades sets a good example, a wave of nuclear power plants in the USA is unlikely to be restarted. The reason: lack of foresight. “This is a really rare case where someone acted very proactively,” says White of the Nuclear Innovation Alliance. But there is a solution: For other power plants that are about to be shut down, it would be cheaper, easier and more efficient to simply extend their operation.
(jl)
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