WASHINGTON, March 17 (Reuters) - The U.S. Department of

Energy said on Monday it has disbursed $57 million of an up to

$1.52 billion loan guarantee for Holtec's Palisades nuclear

plant in Michigan, which the company hopes will be the first

U.S. commercial reactor to restart after ceasing operations.

The loan guarantee was part of an effort by the

administration of former President Joe Biden to support nuclear

energy, which generates virtually emissions-free power, to curb

climate change and to help satisfy rising electricity demand

from artificial intelligence, electric vehicles and digital

currency.

It was the second disbursement of funds for the conditional

loan guarantee for Palisades that the department's Loan Programs

Office closed last year.

"Today's action is yet another step toward advancing

President (Donald) Trump's commitment to increase domestic

energy production, bolster our security and lower costs for the

American people," Energy Secretary Chris Wright said in a

release.

Power company Entergy ( ETR ) closed the 80- megawatt

Palisades reactor in Michigan in 2022, after the plant generated

electricity for more than 50 years. It shut two weeks ahead of

schedule over a glitch with a control rod, despite a $6 billion

federal program to save nuclear plants suffering from rising

costs.

Holtec wants to reopen the plant late this year, but still

needs permits from the Nuclear Regulatory Commission. Holtec is

repairing steam generators at Palisades as the standard

procedure for maintaining the units was not followed when the

plant went into shutdown.