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Biden To Offer $1.5 Billion Loan To Restart Michigan Nuclear Power Plant (yahoo.com) 275

The Biden administration is poised to lend $1.5 billion for what what would be the first restart of a shuttered US nuclear reactor, the latest sign of strengthening federal government support for the atomic industry. Bloomberg: The funding, which is set to get conditional backing from the US Energy Department, will be offered as soon as next month to closely held Holtec International to restart its Palisades nuclear plant in Michigan, according to people familiar with the matter. Holtec has said a restart of the reactor is contingent on a federal loan. Without such support, the company has said it would decommission the site.

The financing comes as the Biden administration prioritizes maintaining the nation's fleet of nuclear plants to help meet its ambitious climate goals -- including a plan to decarbonize the electricity grid by 2035. More than a dozen reactors have closed since 2013 amid competition from cheaper power from natural gas and renewables, and the Energy Department has warned that as many of half of the nation's nuclear reactors are at risk of closing due to economic factors.

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Biden To Offer $1.5 Billion Loan To Restart Michigan Nuclear Power Plant

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  • Great! (Score:5, Insightful)

    by Talon0ne ( 10115958 ) on Thursday February 01, 2024 @11:43AM (#64206038)

    Nuclear is by far the most logical method of generating energy. Now if we could get some modern designs green lit we can take care of the bulk of the waste problem. New designs can use up most of the material.

    • by CEC-P ( 10248912 )
      Electric excavators. Electric centrifuges. I mean, people were saying that it feeds itself but in relation to getting tritium from sea water for fusion but it's basically the same systems as Uranium, just different material and source. But it's the same transport methods basically.

      Let's look at the alternatives that complete morons came up with like 100 people drive their cars in to work, build a pipeline, run vacuum pumps and pressurizers to pump CO2 underground? Now that's some net sum positive bullshi
    • Re:Great! (Score:4, Interesting)

      by Opportunist ( 166417 ) on Thursday February 01, 2024 @01:31PM (#64206314)

      I'm no fan of nuclear power. It has a problem with the waste, it has a problem with safety during its lifetime.

      At the same time it's our only chance right now to keep our living standard while not trashing the planet for good.

      But we should use that time nuclear power buys us to move on.

      • it has a problem with safety during its lifetime

        What safety problems? Don't mention anything outside of the USA because drunken Soviets breaking all the rules and having the result blow up in their face has nothing to do with how the USA runs nuclear power plants.

  • Why did it close? (Score:5, Interesting)

    by Geoffrey.landis ( 926948 ) on Thursday February 01, 2024 @11:47AM (#64206044) Homepage

    Would be useful to have a better idea of why it closed in the first place.

    The article says "Entergy Corp. closed it due to financial reasons." Wait, what? This is an already-built plant. It can't compete on cost even though the construction cost was already paid??

    • by saloomy ( 2817221 ) on Thursday February 01, 2024 @11:59AM (#64206072)
      Insurance and regulatory requirements are the most expensive line item in operating a nuclear plant. The amount of money they pay for premiums vs the cost of the 3-Mile Island incident is outrageous, but mandated by the Fed.
      • by Geoffrey.landis ( 926948 ) on Thursday February 01, 2024 @12:06PM (#64206092) Homepage

        Insurance and regulatory requirements are the most expensive line item in operating a nuclear plant. The amount of money they pay for premiums vs the cost of the 3-Mile Island incident is outrageous, but mandated by the Fed.

        Numbers, please.

        • by saloomy ( 2817221 ) on Thursday February 01, 2024 @12:50PM (#64206218)
          Absolutely. So this is very recent (Jan 1, 2024), NRC-2023-130, Page 71988 to 71990 (not making those numbers up), 88 FT 71988 amends the required amount of primary nuclear liability insurance to $500m per reactor over 100MW in production capacity. The premiums of such a policy vary widely based on location, state and local laws, whether spent fuel is stored on or off site (off site requires another kind of insurance and transportation costs), and how many generators are co-located. Citation. [federalregister.gov]

          NRC Fees to certify the design of a reactor range from $50-$75m of light water reactors. Citation. [world-nuclear.org]

          Three Mile Island, the only major incident involving large scale payments costs insurers $140m (max for two reactors, $70m each at the time) for a class action lawsuit and $300m for the operator as property insurance. That is $1,895,000,000 in todays dollars from 1979. Citation. [iii.org]
          • I'm not big on the Feds stepping in to do things like this in general, but insuring reactors seems like something maybe the government could do. (Yes, I know this would involve passing legislation, and that we're not keen on doing that anymore.) Especially as the outcome of a utility actually making a claim in the event of a catastrophic disaster (say, $2B in the case of a four-reactor plant) is reasonably likely to be "insurer fails and the US government is left holding the bag."

            Yes the Feds would then also be in charge of assessing and managing risk but that's already in the purview of the NRC.

            • You'll get folks screaming 'soclialize the risks, privatize the profit' and it'll be BOTH the right and left screaming about that. That'd be kind of interesting to hear, but I guarantee they will.
              • It's only socializing the risk if the operator doesn't pay for the insurance.

                There's no reason the government couldn't require premium payments just the same as a private insurance company does, and until there's a problem that money can sit there and be managed by the Treasury Department, growing interest, because the government isn't going to have the overhead and shareholder greed of a private insurer.

          • by AmiMoJo ( 196126 )

            Construction was started in 1967, so it's a very old design and a very old reactor. It appears to have had some updates over the years, but nothing to change the fundamental design.

            For reference, Fukushima is around $500 billion, but many of the former residents got screwed and would doubtless get a lot more money in the US.

      • Re:Why did it close? (Score:5, Interesting)

        by Zekolas ( 1029166 ) on Thursday February 01, 2024 @01:30PM (#64206310)
        I cannot find but years ago there was an article that had a heading like "How much does it cost to change a lightbulb" and it went over a normal thing that plagues nuclear engineers . Any changes must undergo extreme testing and certifications . The lightbulbs they used were old and out dated , for years they paid absurd prices to the vendor to keep making the same type of lightbulb like 10k per bulb. Finally the vendor said they could not longer get the parts to make them, they could not make the light bulb anymore and the plant would have to start using a different type. So it took years of testing just to approve or certify using a new type of lightbulb in the plant, he estimated the change cost well over 5 million dollars just to get the new light bulbs certified
        • by gweihir ( 88907 )

          Sure. But the reason for that is that with this tech, it is _neccessary_. In fact, the safety requirements are a lot lower than on any other form of energy generation as soon as you take the actual risks into account.

      • So instead of the Fed simply working to modify or waive certain financial burdens imposed by themselves, we taxpayers are going to instead watch a few billion (this is only round one) get handed over to a company arrogantly coming with a ”Fuck You Pay Me” attitude, with the Fed being bought/pressured/guilted into funding their start-back-up costs, while no one questions a damn thing?

        Yes. It’s worth finding out WHY they closed. Parent is right. Ask the damn questions, or never complain a

        • by sfcat ( 872532 )
          Perhaps because the plant was connected to a utility company's grid. And if that utility doesn't want the power nor is willing to carry it to a energy market, then no matter how cheap the plant is to run, it isn't financial viable.
    • by Tailhook ( 98486 )

      Why did it close?

      Because it's a market and every form of power generation that isn't "green" is getting out-subsidized.

      Wait, what? This is an already-built plant.

      Reactors have to be refueled, waste has to be handled, plant has to be maintained, etc. It's not free just because it's built. Also, it's a small, 52 year old reactor site that has always operated on the margin of profitability.

      • by Ksevio ( 865461 )

        Right, because there definitely aren't any subsidies on fossil fuels (the main competition).

    • by gweihir ( 88907 )

      Indeed. The problem with nuclear power is that it is so excessively expensive that even keeping a built and running plant is not cost-effective to keep running. Unless you get a lot of hidden subsidies that is. The same is happening in other places. For example, the a Swiss operator did shut down a plant a while back they still had operations permission for several more years because it was simply not cost-effective at all and they would have lost a lot of money if they hat kept it running.

      The dirty secret

      • Re: (Score:2, Insightful)

        by iggymanz ( 596061 )

        False assertion, smarter countries like China and S. Korea see costs a third of what USA. does. USA only has a stupidity problem, nuclear can be very cost effective.

  • by HBI ( 10338492 ) on Thursday February 01, 2024 @11:47AM (#64206046)

    I mean, it's way too late to affect the election, i'd have done this a year ago and gotten the plant restarted and trumpeted the news across the state, but at least they are trying to fight. I think it'll turn off some voters and whether it thrills more than it turns off is open to question.

    It's a Carteresque move - good policy but too late and divorced from a firm political thrust, even though it's localized to a place where Biden is hurting. Objectively, Carter had lots of good policy which was overshadowed by economic and foreign policy considerations.

    • by rsilvergun ( 571051 ) on Thursday February 01, 2024 @12:04PM (#64206086)
      with regards to the election. It won't move the needle much with environmentalists because there's plenty of them that want the money spent on wind/solar instead of nuclear.

      Biden's not doing this for the election, he's doing it because he thinks it's the right thing to do.

      I know, it's weird to think that a politician might think and act that way in 2024, but here we are.
      • by HBI ( 10338492 )

        Regardless of who is responsible for the policy - nothing happens in DC in a vacuum. And if they aren't thinking hard about the fact that Biden is 5-7% behind in the polls in MI, they should think harder.

        Otherwise, why do you think the support for Israel has been muted? They sense the danger here.

      • The good news for Biden is that the environmentalists will eventually figure out that comparing the two presumptive candidates still leaves them with one that actually listens to what they have to say before making decisions that they may not agree with; and the other who spews absolute lies and long-debunked made-up nonsense about literally every single environmental issue while spending 4 years ignoring every pro-environmental opinion while rolling back decades of environmental protections.

        The environment

    • Re: (Score:3, Interesting)

      by blahabl ( 7651114 )

      I mean, it's way too late to affect the election, i'd have done this a year ago and gotten the plant restarted and trumpeted the news across the state, but at least they are trying to fight. I think it'll turn off some voters and whether it thrills more than it turns off is open to question.

      It's a Carteresque move - good policy but too late and divorced from a firm political thrust, even though it's localized to a place where Biden is hurting. Objectively, Carter had lots of good policy which was overshadowed by economic and foreign policy considerations.

      And here I was, naively thinking this sudden outbreak of common sense was about climate, planet, Gaia crying and so on, and not about the elections. But it's quite amazing how sensible leftists can become all of a sudden when faced with the threat of The Other Guy (imperial march playing in backgound) winning. Maybe we should do that more often to them.

    • by skam240 ( 789197 )

      How would this help the election? Nuclear only has value versus other forms of power in the context of fighting global warming (otherwise it is too expensive) and if global warming is a primary concern to a voter then they'll vote Democrat either way as Trump is not at all a supporter of green policies.

    • by godrik ( 1287354 )

      I'd have done this a year ago

      Ideally that would have been better.

      But it is possible that it took them that amount of time to verify that it was feasible and made sense policy wise.

      I work for $LOCALUNIVERSITY and sometimes decision can take time because at the scale of ~50,000 people even a simple decision can have deep consequences.

      Here we are talking billions and nuclear power plant. I would not be surprised if it took them a year to do understand the problem, understand the impact, see a possible solution and do the study by running

  • by aaarrrgggh ( 9205 ) on Thursday February 01, 2024 @12:07PM (#64206094)

    I support nuclear power, but this seems like an odd move. The plant is only 800MW, and IIRC it was shut down due to the lack of firm power purchase agreements. That might have been resolved, but why is this such a capital intensive process? It smells more of an operating subsidy, and at that something in the neighborhood of $40/MWh.

    • Re: (Score:2, Interesting)

      by CEC-P ( 10248912 )
      An emissions problem that can be provably solved by simply throwing money at it? And quickly? I'll take it. Look at the "Carbon credits" bullshit where they gave people in Africa more efficient stoves so they just used the old one and the new one and cooked more, almost doubling emissions. Very few "solutions" you can just throw money at and it actually works. I'll take this one!
      • by skam240 ( 789197 )

        Look at the "Carbon credits" bullshit where they gave people in Africa more efficient stoves so they just used the old one and the new one and cooked more, almost doubling emissions.

        People in Africa started cooking twice as much food because they got a free new stove? Citation please.

        • by CEC-P ( 10248912 )
          https://youtu.be/AW3gaelBypY?t... [youtu.be]
          citations in the description
          • None of the links (1/3 are broken) say anything about Africans cooking more because they received better stoves.

            • by sfcat ( 872532 )
              There is a similar study in India. Its a well known phenomenon that breaks most attempts to reduce 3rd world emissions (which is a silly thing really). Turns out, poor people really want better standards of living instead of whatever the rich folks giving them stuff want. Weird huh.
    • Re: (Score:3, Insightful)

      by WindBourne ( 631190 )
      The reason they were not getting power sold was not due to costs, but because far left fought anybody buying them. Heck, AI, coin mining, etc should be jumping all over nuclear power plants.
  • by toy4two ( 655025 ) on Thursday February 01, 2024 @12:14PM (#64206112)
    Why hasn't Caliofrnia's leadership asked the Biden administration for money to restart Southern Califonia's nuclear plant at San Onofre? If not restarting breaking ground on a replacement next to it. We had clean, safe, amoritized energy for Southern California for decades and then the power company installed leaking steam generator pipes. They decided it was better to be in the transmission business (PROFIT) than generation. As a shareholder in the company I'm happy for my ever increasing returns, as a consumer of their energy rates have gone from .13 Kwh to .33 Kwh. Sure, some of that is rate payers funding wildfire lawsuits payouts the shareholders don't want to pay, but quite a bit of that is due to shutting down the plant. I'd rather know where my pollution is then breathe it in with all the new gas peaker plants we had to build recently.
    • by GFS666 ( 6452674 )
      (San Diego Resident here) I totally agree with you. I honestly thought that the State should have came in and helped pay for the fix so that California would have had carbon free power to help with its mandate to go carbon free.
    • SONGs is too far along. Instead, we need to push ALL states and territories to replace coal, nat gas, and even old shutdown nuclear power plants with new SMRs, along with desalination/clean water, and CO2 removal from cooling water.
    • by taustin ( 171655 )

      I know a guy who was on the board for the Anaheim electric utility when the decision was made. San Onofre needs some serious work done to operate safely, and the cost was prohibitive.

      Now, it would need even more. It might actually be cheaper to build a new one.

      • My recollection was that Toshiba screwed up the replacement generator design which was supposed to be identical to the old design. To compensate, they could have plugged some of the steam generator tubes and stopped the vibrations causing the problems (leaks?), albeit with slightly reduced power output.

        Instead of fixing the problem by holding Toshiba's feet to the fire or patching up the existing unit as above, the engineering difficulties were used as a lever by those against nuclear power (both those a

  • by Anonymous Coward

    “Today, nuclear fuel produced by Russia accounts for more than 20 percent of the fuel used by U.S. reactors."
    https://mcmorris.house.gov/posts/house-passes-mcmorris-rodgers-bill-banning-russian-uranium-imports-to-united-states

    • “Today, nuclear fuel produced by Russia accounts for more than 20 percent of the fuel used by U.S. reactors."

      That is a problem that should be fixed irrespective of this one particular plant under discussion.

  • Call a spade a spade (Score:5, Interesting)

    by necro81 ( 917438 ) on Thursday February 01, 2024 @12:32PM (#64206164) Journal
    Let's call this "loan" what it actually is: a grant, a handout, a carrot, a giveaway, a subsidy. Under what business scenario is this plant - already shuttered due to its age and economic infeasibility - ever going to be able to sell electricity at a rate that would allow them to repay the US taxpayer?

    OK, fine, it's a loan guarantee, not a direct loan. But in the case of failure to repay, it amounts to the same thing. Worse, actually, because the US doesn't even get interest payments on a loan guarantee.
  • Someone is gunna pocket a LOT of cash. I'll bet they're a big campaign contributor or some other political connection.

  • I think the real reason this is happening is nobody wants more China.

    No more Chinese Solar Panels
    No more Chinese batteries

    Especially our ally Japan. Japan REALLY doesn't want anyone supporting China anymore. To the point where Japan is hedging bets for Hydrogen. https://slashdot.org/index2.pl... [slashdot.org] .

    All you need to make Hydrogen is electricity and water. Saltwater is even better.

    Hydrogen also requires no change to our current production lines. Ford/GM can continue producing ICE engines, with just a simple

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