The effort to revive the Palisades nuclear plant in southwest Michigan, shut down since May 2022, may face significant delays and additional costs due to a recently discovered issue with the plant’s steam generators. According to a document released by the U.S. Nuclear Regulatory Commission (NRC), a large number of steam generator tubes at the plant have been found to have potential defects that need further analysis and possible repair.
Steam generators are crucial components of a nuclear plant, acting as heat exchangers that transfer heat from the reactor vessel to the steam systems. As one of the most expensive parts of a plant, any defects could severely impact the timeline and cost of the project. The Palisades plant, currently owned by Holtec International, is set to be the first in history to attempt restarting after entering the decommissioning phase.
The recent inspection, conducted in August with NRC oversight, revealed “indications” in the steam generator tubes that require additional maintenance. These indications, typically cracks or flaws in metal, raise concerns about the integrity of the tubes and may lead to costly repairs. Despite the findings, Holtec remains optimistic about the plant’s planned restart in late 2025.
Nick Culp, senior manager of government affairs and communications at Holtec Palisades, emphasized the importance of early inspections, which have allowed the company to identify potential issues and plan refurbishments in advance. “Holtec remains on track to restart the plant by late 2025,” Culp said, assuring that all maintenance would be completed before the plant returns to operation.
However, nuclear industry veteran Alan Blind, a former executive at Palisades, believes the discovery could add $500 million to the project and delay the restart by two to three years. Blind, who worked as engineering director at Palisades from 2006 to 2013, expressed doubts about how well the plant’s steam generators were maintained after the 2022 shutdown, noting that without proper procedures, corrosion could begin in as little as 24 hours.
Blind also referenced his experience at Indian Point nuclear plant in New York, where a similar issue led to the eventual replacement of steam generators instead of repairing existing ones. He suspects Palisades may face the same situation, which would involve significant delays since new steam generators take years to manufacture and are extremely costly.
The NRC has stated that further analysis of the steam generator tubes is necessary, and it will monitor Holtec’s corrective actions closely to ensure safety standards are met. The agency also acknowledged the high public and media interest surrounding Palisades’ potential restart.
Holtec, which was initially hired to decommission the plant before purchasing it for the restart project, has secured $1.52 billion in funding from the U.S. Department of Energy and additional support from the state of Michigan. The restart is seen as a potential breakthrough for reducing carbon emissions and reviving high-paying jobs in the region.
Despite the challenges, Culp reaffirmed Holtec’s commitment to completing the project with “industry-proven solutions” and meeting the highest safety standards before bringing the plant back online.