U.S. Energy Department Advances Iowa Nuclear Plant Restart With $1.9 Billion Loan

The U.S. Energy Department on Sep. 8 finalized a loan of up to $1.9 billion for NextEra Energy to restart the 615-megawatt Duane Arnold Energy Center in Linn County, Iowa, marking another step in the federal government’s push to expand domestic nuclear generation. Provided through the Office of Energy Dominance Financing, the loan is intended to help return Iowa’s only nuclear power plant to service after it shut down in 2020, adding reliable baseload electricity to meet rising demand across Iowa and the broader Midwest.

The project is expected to generate enough electricity to serve nearly 500,000 homes while strengthening regional grid reliability as power demand grows. The restart is also projected to create nearly 1,500 construction jobs and support more than 450 permanent operating positions once the facility resumes service.

The plant’s return remains contingent on required licensing approvals from the U.S. Nuclear Regulatory Commission before commercial operations can resume. If approved, the facility would become one of a small number of U.S. nuclear plants to restart after previously ceasing operations, underscoring renewed federal support for preserving existing nuclear infrastructure alongside new generation projects.

The Duane Arnold transaction reflects the agency’s broader financing strategy for nuclear projects. With this financial close, the office has now supported three nuclear plant restarts and completed four conditional commitments alongside financial closings under the current administration, signaling an accelerated approach to deploying federal capital for energy infrastructure projects aimed at bringing additional generation online more quickly.