By Timothy Gardner
In a surprising turn of events, Holtec, the company aiming to reopen the Palisades nuclear reactor in Michigan, has discovered that corrosion cracking in the steam generators far exceeds previous estimates. This revelation was made public by the U.S. nuclear power regulator in a document released on Wednesday.
The Biden administration recently finalized a $1.52 billion conditional loan guarantee for the Palisades plant, as part of its efforts to support nuclear energy. This move is seen as crucial in the fight against climate change and to meet the increasing electricity demand from emerging technologies such as artificial intelligence, electric vehicles, and digital currency.
A spokesperson for the Nuclear Regulatory Commission stated that Holtec must ensure the generators meet NRC requirements before the agency can authorize the reopening of the Palisades plant.
Despite Holtec’s plans to resume operations at the plant by late next year, concerns have been raised about the stress corrosion cracking found in tubes within the steam generators. A staggering 1,163 steam generator tubes showed indications of stress cracking, surpassing previous estimates based on the plant’s operating history. With over 16,000 tubes in total, the extent of the issue is cause for alarm.
Palisades, which ceased operations under its previous owner in 2022, is striving to become the first modern U.S. nuclear power plant to reopen after a full shutdown.
Recent inspections by the U.S. nuclear regulator revealed a significant number of steam generator tubes with indications requiring further analysis and potential repairs. These components are vital to the functioning of a nuclear power plant and demand meticulous maintenance due to their sensitivity and high replacement costs.
This development raises serious questions about the future of the Palisades nuclear reactor and its implications for investors in the energy sector. Stay tuned for more updates as the situation unfolds.