KEY POINTS
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Holtec plans to deploy two small modular nuclear reactors at the Palisades Energy Center in Covert Township, Michigan.
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A U.S. Nuclear Regulatory Commission exemption authorizes early excavation support and site work, not full plant construction.
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Holtec says the units are expected to support deployment of 680 megawatts. The exemption could support and accelerate later plant construction following regulatory approval.
Holtec is planning to deploy two of its SMR-300 small modular reactors — Pioneer Units 1 and 2 — at the Palisades Energy Center in Covert Township, Michigan.
In a Sept. 15, 2026, news release, Holtec International said the U.S. Nuclear Regulatory Commission granted an exemption on Aug. 28 to allow early excavation support and site work.
Nuclear Renaissance Taking Shape
The Holtec project is part of what has been called a nuclear renaissance, that is tied to the broader electrification movement. Power infrastructure is expected to grow in order to support rising demand for electricity from artificial intelligence and cloud computing.
The International Energy Agency (IEA) anticipates that through 2030, on average, 50% more electricity demand each year than the previous decade.
Nonresidential construction projects have been announced or started for large-scale reactors, small modular reactors like Holtec's, and new energy infrastructure like power storage.
In the Autumn 2026 Construction Starts Forecast, ConstructConnect Chief Economist Michael Guckes indicated that Power Infrastructure "...remains a policy priority and is projected to grow by 7.8%, with funding shifting from green initiatives to other Power Infrastructure."
Nuclear development is one mode of power being pursued to provide reliable, low-carbon power for AI data centers, electrification, and manufacturing growth. Global nuclear generation is set to reach an all‑time high, supported by nearly 420 operating reactors and 63 under construction, according to 2025 data from International Energy Agency.
Deploying Small Nuclear Reactors
The company is the owner and developer of the SMR-300, an advanced small modular reactor (SMR) with passive safety systems and currently expects to deploy its first two units at its Palisades site in Michigan. [Read: What is a small modular reactor (SMR)?, below]
Holtec describes the SMR-300 as an advanced design featuring passive safety systems. In its release, Holtec says the approval marks another step toward deploying 680 megawatts of clean, reliable energy through the two units.
However, the latest regulatory approval is limited to early site construction activities.
A site rendering issued by Holtec shows the Palisades Energy Center in Covert Township, Michigan, prior to early construction, at left, and anticipated future construction, on the right. Image: Holtec
What Is Being Built Now?
Holtec’s statement describes early site construction activities intended to prepare the site for later plant construction. The exemption covers permanent support-of-excavation and cutoff-wall systems.
The release separately states that the exemption does not constitute a commitment to issue an LWA or construction permit.
Holtec said the authorized systems include diaphragm walls, soldier-pile soil-mix walls and perimeter cutoff walls, with tiebacks or struts used as needed. The systems are intended to stabilize excavations, protect adjacent structures and utilities, manage groundwater pressures and support safe construction.
The approval also allows Holtec to proceed with support-of-excavation and cutoff-wall installation, excavation, dewatering and required ground-improvement activities for the planned Nuclear Island, Turbine Island and Balance of Plant structures.
Holtec said the support-of-excavation walls will be retired in place. The space between the walls and permanent structures will then be backfilled to grade.
Why the Early Work Matters
The early activities are intended to establish stable excavation and foundation conditions for subsequent construction. Holtec said the work could support and accelerate later plant construction following LWA approval.
Holtec submitted its exemption request on Dec. 31, 2025, as part of Part 1 of a phased Construction Permit Application. The submission included an LWA R0 application and an Environmental Report, according to the company.
What is a Small Modular Reactor (SMR)?
A small modular reactor (SMR) is a compact nuclear reactor designed to produce a steady supply of clean energy from the heat generated by nuclear fission.
In Holtec’s SMR-300 design, that heat boils water into steam. The steam drives a turbine to generate electricity through a conventional Rankine power cycle. The Rankine cycle explains how many power plants use heat to make electricity. The heat can come from coal, natural gas, oil, nuclear energy, plant materials, sunlight, or heat from inside Earth.
The SMR-300, according to Holtec, is designed with passive safety features that help protect the reactor without requiring operator intervention. Its reactor core is located deep underground inside a reinforced steel-and-concrete containment enclosure, helping shield critical systems from natural disasters and man-made threats.
Key safety features, according to Holtec, include:
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The reactor is designed to be “walk-away safe,” meaning it requires no operator action during natural disasters, security threats, or other conditions addressed by U.S. regulations.
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Safety-critical equipment is housed deep within protected areas of the plant.
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Passive safety systems reduce the need for powered equipment and other active mechanisms.
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A large supply of water keeps the reactor core deeply submerged, helping provide continuous cooling.
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Spent fuel is stored using Holtec’s HI-STORM UMAX dry storage system, which places fuel in an underground, vertically ventilated module.
Holtec stated that these features are intended to simplify plant operations while providing multiple layers of protection for the reactor, workers, and surrounding communities.
What Did the NRC Find?
The NRC issued an Environmental Assessment and Finding of No Significant Impact on Aug. 25, according to Holtec’s release. The agency concluded that the authorized activities would not significantly affect the human environment or historic properties and would not require a separate environmental impact statement for the exemption.
Holtec reported that, under 10 CFR 50.12, the NRC determined the exemption was authorized by law, would not create undue risk to public health and safety, was consistent with the common defense and security, and was supported by special circumstances.
The NRC also found reasonable assurance that installing and retiring the support-of-excavation walls would not adversely affect the safe design or siting of Pioneer Units 1 and 2, Holtec said.
During excavation, Holtec will perform geologic mapping and data collection, notify the NRC when the excavation is open for inspection and account for the retired walls in soil-structure interaction analyses.
What Does the Exemption Not Authorize?
The early work exemption is narrow. Holtec’s release states that it authorizes the specified early support-of-excavation work but does not constitute a commitment to issue an LWA or a construction permit.
In other words, the release describes authorization for specified early site work, not a commitment to the next licensing approvals. The release does not announce an LWA or construction permit for Pioneer Units 1 and 2.
Holtec cautioned that statements about planned construction activities and anticipated deployment are forward-looking and subject to risks and uncertainties.
Holtec is also working to recommission the Palisades nuclear power plant and is the NRC-authorized operator of the facility. Holtec says the restart would be the first U.S. commercial nuclear reactor to be repowered after permanent shutdown.
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