The US nuclear regulator, the Nuclear Regulatory Commission, has issued a warning to a flagship nuclear project operated by Holtec International, following multiple safety incidents.

The NRC said in the warning that Holtec must address a “chilled work environment” that has made staff reluctant to raise safety concerns without fear of retaliation.

Holtec is working to reopen the Palisades nuclear power plant in Michigan, which was decommissioned in 2022, ahead of a March 2027 contractual deadline to provide power to customers.

Nuclear power

The plan is part of a broader effort by the US political administration to relaunch nuclear plants to provide power to AI data centres, with the administration providing tens of billions in government funds and promising to do away with a culture of “risk aversion” at the NRC in order to accelerate projects.

Holtec itself, which has never operated a nuclear plant, has received about $2.2bn in government support for the plan, raising concerns that financial and political pressure is causing the company to cut corners.

Two other projects to restart decommissioned nuclear facilities, at Three Mile Island in Pennsylvania and Duane Arnold in Iowa, began after work started at the Palisades site.

Safety incidents

Last month Holtec postponed a planned IPO amid declining AI-related shares.

The Palisades plant, which began operation in 1971, has seen multiple safety incidents in recent months, including one last year in which a worker fell into the reactor cavity and ingested water.

In September, a bundle of nuclear fuel rods tilted from its upright position during a refuelling operation, delaying the reactor’s reopening.

Holtec said it used a specially designed device to lift and transfer the tilted assembly.

Workplace culture

The NRC also noted that nine of the 15 reactor operators at Palisades failed their initial licence examinations in July and August, with six issued licences.

The agency said its concerns about workplace culture must be addressed quickly, and that it would review Holtec’s plan to do so within 30 days.

Holtec said it has a “strong safety-conscious work environment”.

The company has in the past been the target of a whistleblower lawsuit and legal action involving former executives around alleged financial misrepresentation, executive retaliation and fraudulent practices.