Iowa's Duane Arnold nuclear plant gets $1.9B
The U.S. Department of Energy finalized a loan of up to $1.9 billion to NextEra Energy to restart the shuttered Duane Arnold Energy Center in Iowa, aiming
The U.S. Department of Energy has closed a loan of up to $1.9 billion to help finance the restart of Iowa's only nuclear power plant. NextEra Energy aims to bring the 615-megawatt Duane Arnold Energy Center back online by early 2029.
The plant shut down six years ago. High repair and relicensing costs, combined with competition from natural gas and low-cost renewables, led to its closure. Now, surging U.S. Electricity demand, driven largely by data centers, is prompting owners to attempt reviving mothballed nuclear facilities.
Federal backing for nuclear restarts
This loan is the third of its kind from the federal government. The financing was finalized by the Department of Energy's Office of Energy Dominance Financing. This office previously provided a $1 billion loan to restart Constellation Energy's Crane plant in Pennsylvania and a $1.52 billion loan for Holtec International's Palisades plant in Michigan.
| Plant | Owner | Federal Loan Amount | Capacity |
|---|---|---|---|
| Duane Arnold Energy Center (IA) | NextEra Energy | Up to $1.9 billion | 615 MW |
| Palisades (MI) | Holtec International | $1.52 billion | 800 MW |
| Crane | Constellation Energy | $1 billion | Not specified |
These decades-old plants all closed in recent years. A successful restart has never been accomplished in the United States.
The path to restart
NextEra Energy is still securing licensing approvals from the U.S. Nuclear Regulatory Commission to return the Iowa plant to service. The company has a significant customer lined up. Last fall, it signed a 25-year agreement with Google to supply electricity from Duane Arnold. This power will help support the tech giant's expanding cloud-computing and AI infrastructure in Iowa.
John Ketchum, president and CEO of Florida-based NextEra Energy, highlighted the project's benefits in a news release. "By bringing new generation online to serve new demand, we can strengthen the grid, create hundreds of good-paying jobs and help ensure Iowa families and businesses are not asked to bear the costs of growth," he said.
A broader nuclear push
Federal loans for nuclear restarts began under the Biden administration. Support for nuclear power has grown bipartisan. In June, the Office of Energy Dominance Financing announced a $17.5 billion loan initiative. This funding is meant to help energy companies buy nuclear equipment and build 10 new large-scale reactors in the coming years.
Several Democratic-led states with past moratoriums on nuclear power have recently walked back their restrictions. They are seeking low-emission electricity sources that can supplement solar and wind and reduce grid strain.
Holtec's Palisades plant in Michigan is poised to become the nation's first nuclear restart, potentially as early as this year. The project has faced delays, missing an original target of early 2026. In July, Holtec completed all major renovations for its 800-MW reactor. Last week, the company began loading nuclear fuel into the reactor vessel. It faces a contractual deadline to complete the restart by March 2027.
Economic impact in Iowa
The reboot of the Duane Arnold plant is expected to supply enough power for nearly 500,000 homes. The project is projected to create nearly 1,500 construction jobs and support over 400 permanent operational positions.
Iowa's Republican Governor Kim Reynolds endorsed the move. "New nuclear development and the restart of Duane Arnold will meet our growing energy demand while also providing hundreds of good-paying jobs throughout the state," she said on Tuesday.
If Holtec successfully returns Palisades to service, it could help establish a viable path for reviving other shuttered reactors across the country.
