$1.9B Federal Loan Backs NextEra’s Duane Arnold Nuclear Plant Restart

Nuclear Power $1.9B Federal Loan Backs NextEra’s Duane Arnold Nuclear Plant Restart Energy Dept. closes financing for Iowa project moving through US agency review and already supported by Google deal to power AI build The U.S. Energy Dept. closed a loan of up to $1.9 billion Sept. 8 to help finance developer NextEra Energy's planned restart of Duane Arnold Energy Center in Iowa, adding federal backing for a nuclear recommissioning effort already well underway. DOE's Office of Energy Dominance Financing announced the loan as a combined conditional commitment and financial close. NextEra said it is targeting restart of the 615-MW plant in Linn County, near Cedar Rapids, no later than the first quarter of 2029, pending regulatory approvals. Federal financing consideration had been underway for months. An April 3 DOE environmental review, referring to earlier Feb. 26 correspondence, said the agency was considering financial assistance for work including site preparation, facility modernization, equipment maintenance and upgrades and refueling. What the loan changes financially remains unclear. NextEra had indicated in late 2024 an intent to halt decommissioning, formally announcing plant restart in October 2025 with a 25-year Google power purchase agreement that the developer said "enables the investment to restart the plant and covers costs for the production of energy." Google plans to use the power for its Iowa cloud and artificial intelligence infrastructure. The project also had a substantial construction program in place before today's closing. An October 2025 economic analysis based on detailed cost estimates supplied by NextEra projected at least $1 billion in direct construction investment. Looking for quick answers on construction and engineering topics? Try Ask ENR, our new smart AI search tool. Ask ENR → The study described spending on engineering, design and installation, along with refurbishment of existing piping, wiring and equipment. Duane Arnold ceased operation in 2020. ENR has tracked Duane Arnold alongside the Palisades nuclear plant in Michigan and the Crane Clean Energy center in Pennsylvania— formerly the undamaged unit of the Three Mile Island plant—as three shuttered U.S. facilities being returned to service. DOE granted Holtec International a $1.52-billion loan for the Michigan plant in 2024 and closed a $1-billion loan last November for Constellation Energy's Crane restart. The administration "is pursuing a comprehensive nuclear strategy, restarting existing reactors, increasing the output of our nuclear fleet and accelerating new construction," Deputy Energy Secretary James Danly said in a statement. A May 2025 executive order directed DOE's loan office to prioritize financing for restarting closed nuclear plants, among other nuclear-energy investments. U.S. Nuclear Regulatory Commission reviews remain ongoing. The commission said in March that NextEra had submitted several licensing actions required to resume power operations and anticipated final decisions by January 2028, subject to changes in review scope or requests for additional information. RELATED Tasks Delay Restart of Palisades Nuclear Site Until Possibly Late March DOE and NextEra did not immediately respond to ENR questions about the timing of the financing announcement and whether the federal loan is necessary for Duane Arnold restart to proceed or if it primarily lowers NextEra project finance costs.