COVERT TOWNSHIP, Mich. (Michigan News Source) — The federal government is putting big money behind Michigan’s nuclear revival, awarding Holtec up to $400 million to develop two small modular reactors at the Palisades Nuclear Plant in Covert Township.
Holtec plans to install two Small Modular Reactor-300 units that would generate about 600 megawatts, nearly matching the output of the original Palisades reactor before it shut down in 2022.
Energy Secretary Chris Wright said the reactors will provide the “round-the-clock power” needed as electricity demand surges from manufacturing, data centers, and AI growth.
Gov. Gretchen Whitmer called the funding a boost for jobs and “Michigan’s clean-energy leadership.” Most of Michigan’s congressional delegation, except Rep. Rashida Tlaib (D-Detroit), backed Holtec’s proposal earlier this year.
Holtec is also seeking to restart the original Palisades plant with the help of a separate federal loan of up to $1.52 billion, though anti-nuclear groups are challenging that effort in court.
If both moves succeed, Michigan would become an early test case for pairing a revived legacy reactor with next-generation small modular units—a combination federal officials say the grid will increasingly rely on.