COVERT TOWNSHIP, Mich. (WOOD) — The federal government has announced the approval of a $1.52 billion loan to support the reopening of the Palisades nuclear power plant south of South Haven.

On Monday, the Biden administration said the $1.52 billion loan through the Department of Energy’s Loan Programs Office would finance the restoration of Palisades off Lake Michigan in Covert Township. The funds come from the Inflation Reduction Act’s Energy Infrastructure Reinvestment program, according to a news release.

Now that the loan to the plant’s owner, Holtec, has been secured, the U.S. Nuclear Regulatory Commission will need to approve reopening the nuclear power plant. Earlier in September, commissioners said Holtec must conduct more inspections, tests, and repairs to its steam generator.

The plant operated for 50 years before closing in May 2022. Last year, Holtec pitched bringing it back online. Holtec said it hopes to get a decision from the NRC in May or June of next year and then be allowed to restart in October. The plant would be allowed to operate until at least 2051, the release said.

Mike Bailey, the plant’s site manager, has worked for Palisades for nearly three decades. Like many employees, he didn’t expect it to ever reopen. After all, that has never happened before for any nuclear power plant in the U.S.

“I stayed on as part of the shutdown crew with the plan of working a few more years and moving onto something else in the industry,” he said. “Obviously, we were approached for the start-up option… I was excited because it allowed me to stay in the area and continue to do the job I love. It’s something I have a passion for and I truly believe in nuclear power and what it provides to our energy source. I also recognize the impact this has on the Southwest Michigan community.”

Members of the Biden administration toured the plant Monday afternoon, saying it’s part of the vision to accelerate the transition to clean energy and fuel economic development.

The reopening of the plant is expected to create or retain up to 600 jobs, many of them filled by former longtime employees. The federal loan will also support 1,000 more workers being on site every 18 months for refueling and maintenance, according to the release.

“I brought a lot of those people back,” Bailey told News 8 Monday. “As I go through the interview process, I ask, ‘Why do you want to come to Palisades?’ The No. 1 answer I get is (that) it’s historic what we’re doing. To say you were a part of that historic opportunity, it’s created a lot of excitement within the nuclear community.”