(NEWSnet/AP) — The federal government will provide a $1.5 billion loan to restart Palisades nuclear power plant in southwestern Michigan, officials announced Wednesday.

Holtec International acquired the 800-megawatt plant in 2022 with a plan to dismantle it. But now the emphasis is on restarting it by late 2025, following support from the state of Michigan and the Biden administration.

Gov. Gretchen Whitmer said it would be the first nuclear power plant to be reopened in the U.S. The plan still faces inspection, testing and approved from U.S. Nuclear Regulatory Commission.

The Palisades plant is along Lake Michigan, about two hours from Chicago. A Michigan utility, CMS Energy, owned it from 1971 until the plant was sold to Louisiana-based utility Entergy in 2007. It was closed in 2022.

Holtec said it has long-term commitments so far from two electric cooperatives to buy power from the plant.

A coalition opposed to restarting what it calls a “zombie reactor” has requested a hearing at NRC.

Holtec spokesman Patrick O’Brien said it will require four to five months to finalize the financial deal with the government.

“It is a loan we have to pay back,” he said.

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