The reactor meant to showcase nuclear’s comeback keeps hitting problems

Restarting a nuclear plant now costs more than predicted.

US regulators have issued a warning to Holtec International concerning safety and workplace culture issues at the Palisades nuclear power plant in Michigan. A contractor fell into the reactor cavity, and a bundle of fuel rods nearly tipped over during refuelling operations. The Nuclear Regulatory Commission (NRC) noted a "chilled work environment" that discourages employees from raising safety concerns without fear of retaliation. Additionally, nine of fifteen reactor operators failed their initial license examinations. Holtec, which has received approximately $2.2 billion in government funding to reopen the shuttered reactor, has never operated a nuclear plant before. The company faces a March 2027 deadline to begin supplying power. The NRC has requested a corrective action plan within 30 days to address these issues, though it stated that current plant safety has not been compromised.

The warning highlights a potential conflict between government mandates to accelerate nuclear power's comeback, especially for AI energy demands, and the stringent safety protocols required for nuclear operations. Critics fear that political and financial pressures to demonstrate nuclear resurgence may be compromising safety standards, leading to increased accident risks and potentially undermining public trust in nuclear energy's viability. The "move fast and break things" culture, if applied to nuclear power, could have severe consequences, contrasting sharply with the deliberate, slow, and careful approach historically essential for nuclear safety.

This situation signals a critical juncture for Holtec International, which aims to transition from a component supplier to a plant operator. The company's struggle to maintain safety standards and operational competence, coupled with previous governance issues and employee concerns, raises questions about its readiness to manage a nuclear facility. The fading investor interest in the nuclear sector, with significant value wiped off major companies, further complicates Holtec's ambitious plans, including its postponed IPO, and suggests a market less convinced of nuclear's immediate economic comeback than the government might be.