Shadow cast over US nuclear revival after Palisades reactor incident

An incident at Palisades, a nuclear reactor in Michigan that is set to be restarted, has cast doubt on a perceived nuclear energy resurgence in the United States. The revival has primarily been fueled by the growing demand for energy from data centers supporting artificial intelligence.

The U.S. Nuclear Regulatory Commission (NRC) disclosed to The National that it is currently investigating a "tipped fuel assembly" incident at the facility in Covert, Michigan. Although the reactor was closed in 2022 before being acquired by Holtec International, it is anticipated to resume operation as the AI-driven energy demand puts pressure on the U.S. energy grid.

A Holtec International spokesperson confirmed that there was "no radiological release" and that neither workers nor the general public were affected by the event. However, the NRC emphasized that the incident had "no radiological release" and that no personnel have experienced injury.

The incident has raised concerns among nearby residents regarding the unprecedented restart of a nuclear reactor. Kevin Kamps, a long-standing nuclear energy critic and founder of Don’t Waste Michigan, highlighted the danger associated with the reactor core and nuclear fuel. He noted that the 55-year-old Palisades plant had faced various issues during its final 15 years of operation, before its closure.

Before being acquired by Holtec, a 2012 NRC report raised concerns about the work culture at Palisades, stating that safety concerns were often disregarded. In 2016, security staff at the plant, then owned by Entergy, were placed on leave for failing to adhere to fire-prevention protocol. A year ago, a worker at Palisades fell into a pool of water while refueling the reactor, though they were not seriously injured.

Upon learning of the Palisades incident, Holtec published a "progress report" on its website, stating that the plant personnel assessed the situation and determined that it did not meet the safety reporting criteria set by the NRC. The company also mentioned that the fuel loading was paused while Holtec addressed the affected fuel assembly.

Holtec's public affairs official reiterated that the fuel was intact and there was no radiological release or injury linked to the issue. The company further disclosed that they had no plans to release photographs of the accident at this time.

Palisades has become a symbol of the NRC's support for more nuclear energy projects across the United States, which gained prominence during the tenure of President Donald Trump. As the plant prepares to load fuel into the reactor, NRC inspectors have been present to ensure that safety and security requirements are met, marking a significant milestone for nuclear energy and the NRC.

In September 2026, days after the Palisades fuel incident, the NRC announced that the plant was moving closer to restart. In recent months, the NRC has introduced new policies concerning "microreactors" and "small-modular reactors" (SMRs), which have attracted substantial investment from major tech companies. However, these modular reactors and their developers face controversy.

A recent blog post by Beyond Nuclear, a Maryland-based non-profit safety watchdog, asserted that the "SMR renaissance is more sound and fury, signifying nothing," as no SMRs are currently operational in the United States and SMR companies have experienced a decline in value due to share shorting and diminishing market worth.