Oklo to begin construction of first small modular furnace in 2027

The nuclear power company Oklo, which Sam Altman invests in, is pushing towards the goal of “constructing the first small modular reactor at the Idaho National Laboratory by 2027.”

The company manufactures 15 MWe to 50 MWe nuclear power plants and uses liquid metal furnace technology as a potential solution to the extreme rise in energy demand brought about by artificial intelligence.

Approval and fuel supply are still bottlenecks, but according to the report, Reuters reports that the company “was selected for 4 cost share awards from the Ministry of Energy, and there is a possibility that advanced recycling technology will be commercialized,” and “secured site use permits from DOE and fuel awards from INL.”

Oklo co-founder and CEO Jacob DeWitt commented: “We have designed and approached construction so that it can be built as quickly as reasonably possible.”

Mr. DeWitt further added: “We're excited about the diversity of our customers. That's because it shows that our size and business model clearly align with customer interests.”

“They don't start with equipment that uses that much electricity overnight, but they usually build up to that kind of equipment.

“If we're going to build a 0.3 million kilowatt reactor, we can't do that, but we can do it with what we're doing.”

Oklo's “Aurora Powerhouse” reactor is about 70 million dollars in the 15 MW version, and the LCoE is 80 to 130 dollars/MWh, and Lazard has analyzed that it will be about the same as peak gas-fired power plants and offshore wind farms.

According to a Reuters report, Oklo has signed an agreement with the Southern Ohio Diversification Initiative to build a second and third commercial plant at DOE's Piketon site, and is interested in building 50 or more nuclear reactors with a total capacity exceeding 700 MWe.

In May, Oklo partnered with Atomic Alchemy to produce medical isotopes for cancer treatment and diagnostic imaging from a recycling process. In addition, an LOI was signed with Hyperscale in Wyoming regarding a 20-year PPA to supply 100 MW to the company's data center campus.

In April, an LOI was signed with Diamondback Energy regarding a 20-year PPA aimed at supplying electricity to the shale oil business in Permian Basin.

Oklo is preparing a pre-application preparation evaluation for nuclear reactors to the Nuclear Regulatory Commission (NRC). In 2022, the NRC rejected Oklo's combined construction/operation license (COLA) application. DeWitte pointed out that this pre-screening was a “dress rehearsal” for their application, and expressed optimism despite previous delays due to the pandemic.

The federal ADVANCE Act passed in June aims to speed up licensing, mobilize the fuel supply chain, and profit Okro by reducing fees, shortening schedules, and providing incentives.

It was introduced about a month ago that Oklo has signed an agreement to supply electricity to Wyoming's hyperscale data center.

As I wrote in May, Oklo obtained shareholder approval to list on the New York Stock Exchange on 5/8. The company's mission is “to provide clean, reliable, and affordable energy on a global scale through the design and deployment of next-generation fast reactor technology.”

Supported by prominent investors in the AI revolution such as Jeff Bezos, Bill Gates, and Peter Thiel, nuclear fusion startups are increasing their traction. Sam Altman, who invested in Okro in 2015, believes the company is “in the best position to commercialize advanced nuclear fission energy solutions,” according to a July press release.

For those who missed it, we introduced various investment opportunities to power up America in the “Next AI Trade,” but most of them have dramatically outperformed the market. Next time, since it is inevitable that “buy” evaluations will flood in in a chain over the next month, we plan to add Oklo to that investment target list.