Palisades restart enters final checks in U.S. first

Holtec International reported that work at the Palisades nuclear plant in Covert, Michigan, has moved from major restart activities into final maintenance, testing and inspections required before startup. The single 805-megawatt boiling water reactor shut down in May 2022 after more than 40 years of commercial operation and later entered the decommissioning process.

Holtec described the project as a “watershed moment,” and said large-scale restart tasks are largely complete. The company said remaining work focuses on routine maintenance, equipment testing, inspections and operational readiness. Regulatory approvals are required before the unit can resume commercial operation.

Other U.S. projects are pursuing returns of existing nuclear capacity. Constellation Energy is working to restart the retired pressurized water reactor at the Crane Clean Energy Center in Pennsylvania and has a 20-year power purchase agreement with Microsoft that targets a return by 2027. NextEra Energy is pursuing a restart of the Duane Arnold Energy Center in Iowa under a 25-year agreement with Google, with the project targeting around 2029 to provide more than 600 megawatts. The Nuclear Regulatory Commission has approved renewed licenses for the Diablo Canyon plant in California that could permit operation into the 2040s if state authorities authorize extended operation.

Restart projects recover existing assets and draw on established operating records. Many include long-term offtake agreements that provide revenue visibility for utilities and operators. The VettaFi Nuclear Renaissance Index, which underlies the Range Nuclear Renaissance Index ETF (NUKZ), includes utilities such as Constellation Energy and PG&E tied to these efforts.

Work to return plants to service creates demand across the nuclear supply chain. Engineering assessments, component replacements, instrumentation upgrades, regulatory licensing support, inspections and specialized maintenance generate contracts for construction and services firms before any new reactor reaches commercial operation.

Regulatory, economic and customer factors determine which retired or idled plants are viable candidates for restart. Projects typically require an economic case supported by utilities or large customers, technical inspections to confirm plant integrity, and regulatory approvals. Power purchase agreements with major technology companies have been used to help finance restart plans at Crane and Duane Arnold by linking predictable electricity demand to revived nuclear capacity.

A successful restart at Palisades would be the first U.S. instance of reversing a decommissioning process and restoring a previously retired reactor to commercial service. The work involves technical repairs, inspections and regulatory steps before the unit can begin producing electricity again.