NextEra Energy Duane Arnold, LLC (NextEra) is seeking a federal loan or loan guarantee from the U.S. Department of Energy (DOE) Office of Energy Dominance Financing (EDF) to restart the Duane Arnold Energy Center in Palo, Iowa. The project involves restoring, maintaining, and resuming power generation at the 615-MW boiling water nuclear reactor, which was previously shut down. The DOE is currently initiating an environmental review to evaluate NextEra's application for federal financial assistance under Title XVII of the Energy Policy Act of 2005.
NextEra aims to bring the plant back online by early 2029, or possibly by the fourth quarter of 2028. A key driver for this restart is a 25-year power purchase agreement with Google, which will acquire the majority of the plant's output to power its cloud and AI infrastructure in Iowa. Central Iowa Power Cooperative (CIPCO) will purchase the remaining estimated 50 megawatts, and NextEra is acquiring CIPCO and Corn Belt Power Cooperative's combined 30% interest, bringing NextEra's ownership to 100%.
The recommissioning of the Duane Arnold Energy Center is projected to create substantial economic benefits for Iowa. This includes over 1,600 direct, indirect, and induced jobs during construction and approximately 400 direct, full-time jobs during operations in Linn County. The project is also expected to generate more than $340 million in annual economic output during operations and over $9 billion in total economic benefits for Iowa. Importantly, energy customers in Iowa will not bear costs associated with the power Google purchases from the facility.
