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$400 Million DOE Bailout for “SMRs” at Palisades

Holtec’s inexperience exacerbates these synergistic old and new reactor risks. Holtec still has no NRC-approved SMR-300 design certification, has never built a reactor, nor operated one, nor repaired and restarted one, let alone a reactor as perpetually problem-plagued as the 60-year old Palisades zombie. 

DECEMBER 3, 2025, by Kevin Kamps

regarding the announcement by the U.S. Department of Energy, Holtec International, and Michigan Governor Gretchen Whitmer of a $400 million federal bailout for “Small Modular Reactor” deployments at the Palisades nuclear power plant in Covert Township, Van Buren County, southwest Michigan.

Holtec’s uncertified and untested so-called ‘Small Modular Reactor’ design, the SMR-300, is not small. At 300 megawatts-electric (MW-e) each, the additional 600 MW-e would nearly double the nuclear megawattage at Palisades, given the unprecedented zombie restart of the 800 MW-e, six decade old reactor there. The zombie reactor was designed in the mid-1960s, and ground was broken on construction in 1967, with the learn-as-we-go dangerous design and fabrication flaws at the nuclear lemon baked in, still putting us in peril to the present day.

Just look at the harm smaller infamous 67 MW-e Michigan reactors have caused in the past. At Fermi Unit 1 on the Lake Erie shore in Monroe County, “we almost lost Detroit” when the plutonium breeder reactor had a partial core meltdown on October 5, 1966. John G. Fuller wrote an iconic book about it by that title in 1975. And Gil Scott-Heron wrote a haunting song about it in 1977, two years before he joined Musicians United for Safe Energy (MUSE) in response to the 1979 Three Mile Island Unit 2 meltdown, the worst reactor disaster in U.S. history — thus far anyway.

And at Big Rock Point — Palisades’ sibling reactor — near Charlevoix on the northwest Lower Peninsula’s Lake Michigan shore, the 67 MW-e experimental reactor shockingly released more than 3 million Curies of hazardous ionizing radioactivity into the environment, from supposedly ‘routine operations’ from 1962 to 1997. In the 1970s, local family practitioner, medical doctor Gerald Drake, and University of Michigan trained statistician Martha Drake, documented statistically significant spina bifida in the immediate area downwind. There is also anecdotal evidence of widespread thyroid pathology as well. This is similar to Palisades, where 50 cases of diagnosed thyroid cancer have been alleged by part-time residents of the small, 120-year old Palisades Park Country Club resort community, where there should not be a single such case of this exceedingly rare disease made infamous by Chornobyl and Fukushima.

Given the damage done by 67 MW-e reactors in Michigan in the past, just imagine what havoc could be wreaked by two 300 MW-e reactors — each 4.5 times larger — at Palisades going forward.

Increased breakdown phase risks at the 60-year old zombie reactor, and break-in phase risks at the two SMR-300 new builds, are a recipe for disaster at Palisades.

Palisades has a long list of breakdown phase risks. From the worst neutron-embrittled reactor pressure vessel in the country or perhaps even the entire world, to severely degraded steam generator tubes, a reactor lid that needed replacement two decades ago, lack of fire protection, calcium silicate containment insulation that would dissolve into sludge with the viscosity of Elmer’s Glue blocking emergency core cooling water flow, the worst operating experience in industry with control rod drive mechanism seal leaks from 1972 to 2022, etc., the Palisades zombie reactor has multiple pathways to reactor core meltdown, which would unleash catastrophic amounts of hazardous ionizing radioactivity into the environment, on the beach of Lake Michigan, drinking water supply for 16 million people along its shores, and more than 40 million people downstream and downwind, up the food chain, and down the generations throughout the Great Lakes region.

Chornobyl in Ukraine in 1986, and Three Mile Island-2 in Pennsylvania in 1979, are examples of brand new reactors causing catastrophes. Through design and construction flaws, and operator inexperience, Holtec’s SMR-300s will introduce increased break-in phase risks at the Palisades nuclear power plant, located on the Great Lakes shoreline. The Great Lakes comprise 21% of the planet’s, 84% of North America’s, and 95% of the United States’ surface fresh water.

Multiple reactors on the tiny 432-acre site also introduce the risk of domino-effect multiple meltdowns, as happened at Fukushima Daiichi, Japan in March 2011.

A 1982 U.S. Nuclear Regulatory Commission (NRC) study the agency unsuccessfully tried to suppress reported that a Palisades meltdown would cause a thousand acute radiation poisoning deaths, 7,000 radiation injuries, 10,000 latent cancer fatalities, and $52 billion in property damage. Adjusting for inflation alone, property damage would now exceed $168 billion. And since populations have increased around Palisades in the past 43 years, casualty figures would be significantly worse, as more people now live in harm’s way.

Holtec’s inexperience exacerbates these synergistic old and new reactor risks. Holtec still has no NRC-approved SMR-300 design certification, has never built a reactor, nor operated one, nor repaired and restarted one, let alone a reactor as perpetually problem-plagued as the 60-year old Palisades zombie. Holtec’s incompetence and corruption has been on full display in just the past several weeks, including a leak of large amounts of ultra-toxic hydrazine into Lake Michigan, the unprecedented fall by a worker into the radioactive reactor cavity, and evidence of potential alcohol consumption and/or drug impairment, including in the protected area, and by a supervisor. Despite all this, NRC has rubber stamped weakened work hour limitations, meaning overworked employees will be more fatigued, as Holtec races to restart the zombie reactor, in order to hold its announced Initial Public Offering, hoping to raise another $10 billion in private investment, for SMR-300 deployment across the country and around the world, with Palisades as the dangerously dubious prototype to be followed.

Speaking of money, Holtec has, thus far, been awarded $3.52 billion (with a B!) in public funding at Palisades alone. But it has requested another $12 billion (with a B!) more. These bailouts significantly impact the pocketbooks of hard working Americans — state and federal taxpayers, as well as electric ratepayers. Palisades represents a wealth redistribution scheme, from the American people to Holtec, compliments of Governor Whitmer, the Michigan state legislature, Congress, President Biden, and now President Trump. Abe Lincoln described the ideal of government as “of, by, and for the people.” At Palisades, government seems to be of, by, and for an inexperienced, incompetent, careless, corrupt and greed-driven corporation, playing radioactive Russian roulette, carrying out a large-scale nuclear experiment, with Great Lakes residents as the unwitting Guinea pigs.”

December 6, 2025 - Posted by Christina Macpherson | safety, Small Modular Nuclear Reactors, USA