Palisades Nuclear Reactor Fuel Assembly Retrieved Amidst Escalating Restart Plan Criticisms

A damaged nuclear fuel assembly has been successfully retrieved from the Palisades nuclear reactor in Michigan, which is slated for a restart. However, the plan to bring the Holtec International-owned facility back online is facing intensified criticism, with concerns now reaching the halls of Congress.

Holtec International announced on Wednesday that its "technical ingenuity" would enable the continuation of efforts to resume operations at the plant. Fadi Diya, Holtec's chief nuclear officer, stated, "When we encounter a challenge, what matters is how we respond. Our team approached this recovery with the same commitment to safety, technical rigour, and teamwork that has guided our work throughout the restart."

The Palisades reactor, acquired by Holtec after its decommissioning in 2022, has become a focal point in the discussion surrounding a potential US nuclear energy renaissance, driven in part by the substantial energy demands of artificial intelligence data centers. Following its shutdown in 2022, plans are in motion to restart the reactor located in West Michigan.

Efforts to restart the reactor in Covert, Michigan, encountered a setback in August. According to the US Nuclear Regulatory Commission (NRC), a fuel assembly tipped over during the fueling process. The NRC confirmed that no radiation was released.

This incident adds to a history of controversies surrounding the Palisades reactor, which first began operation in 1971. A 2012 NRC report highlighted concerns about the plant's work culture, suggesting that safety issues were frequently disregarded. In 2016, while owned by Entergy, security personnel were suspended for failing to adhere to fire prevention protocols. More recently, in October 2025, a worker at Palisades sustained minor injuries after falling from a refueling bridge into a water pool.

In a recent development, the NRC issued a letter to Holtec following an inspection. While acknowledging an overall safety-conscious work environment at Palisades, the inspection identified a "chilled work environment" within the supply chain and quality assurance departments. The NRC noted, "Employees in these two work departments are hesitant to raise safety concerns using all available avenues without fear of retaliation." Patrick O’Brien, Holtec's director of government affairs and communications, responded last week by stating that Holtec is "taking actions to address these issues and will continue our work to maintain and strengthen a healthy safety-conscious work environment."

Nuclear engineer Arnie Gundersen, an expert adviser for the environmental advocacy group Don't Waste Michigan, has voiced strong criticism regarding the handling of the Palisades restart. "In the last four weeks, Palisades lost control and tipped a nuclear fuel bundle and couldn’t get it out, nine out of 15 licensed reactor operators failed their exam, and more than half of the people in their quality assurance and procurement departments feel they will be fired by management if they bring concerns forward," he stated. He added, "ironically … the NRC just gave them permission to begin loading fuel again!"

Mr. Gundersen has reportedly escalated his concerns about the Palisades nuclear restart to US Democratic Senator Edward Markey, a prominent critic of the nuclear industry. According to Mr. Gundersen's letter to Senator Markey, "The Nuclear Regulatory Commission has either ignored or rebuffed my safety concerns as an expert witness for the last three years. Simply put, restarting the 55-year-old Palisades reactor is unsafe. Holtec is a rookie with no nuclear operating experience and has been entrusted with an incredibly complex, never-before-attempted undertaking."

Despite these criticisms, Michigan's Democratic Governor Gretchen Whitmer has previously expressed support for the Palisades restart efforts and has not indicated a change in her stance. Holtec reiterated its commitment to safety on Wednesday, asserting in a press release, "Palisades will resume operations when all required work is complete and all applicable federal requirements and industry standards are met."