Michigan has allocated another $150 million to the Palisades Nuclear Power Plant, bringing the state’s total investment to $300 million. This funding is part of a larger effort to revive the 800-megawatt facility on Lake Michigan, which closed over two years ago.

The state’s financial commitment is designed to unlock a $1.52 billion federal loan guarantee for Holtec International, the plant’s owner. According to State Representative Joey Andrews, this state funding must be utilized before accessing the federal support, which was approved by the U.S. Department of Energy earlier this year.

Read: Federal Government Loans $1.5 Billion to Revive Palisades Nuclear Plant

The push to repower Palisades aligns with both state and federal clean energy goals, as nuclear power offers a large-scale, low-emission alternative to fossil fuels. If successful, this would mark the first instance in the United States of a decommissioned nuclear plant being brought back online.

The project has garnered support from Governor Gretchen Whitmer’s administration, with her climate advisor describing it as a key component of the state’s climate strategy. Holtec has already made significant progress, hiring over 200 employees this year and planning to reach a full staff of 600 by the time of restart.

The process, however, is not without challenges. The Nuclear Regulatory Commission is conducting environmental reviews and will require extensive inspections and potential upgrades before allowing the plant to reopen. Critics, including environmental justice advocates and some local residents, have expressed concerns about the safety of restarting the aging facility.

Information for this story was found via the sources and companies mentioned. The author has no securities or affiliations related to the organizations discussed. Not a recommendation to buy or sell. Always do additional research and consult a professional before purchasing a security. The author holds no licenses.