The United States announced on Tuesday that it has chosen five companies, including Oklo, for advanced discussions on potentially repurposing its Cold War-era plutonium as nuclear reactor fuel. This initiative follows reports last year that the administration of Donald Trump planned to make approximately 20 metric tons of plutonium from dismantled nuclear warheads available to American power companies.
Background and Context
President Trump had previously ordered a halt in May to a significant program aimed at diluting and disposing of surplus plutonium. Instead, his directive sought to provide this material as fuel for advanced nuclear technologies. The Energy Department currently stores this surplus U.S. plutonium, which has a half-life of 24,000 years and requires protective handling, at heavily guarded weapons facilities in states such as South Carolina, Texas, and New Mexico.
Selected Companies and Market Impact
Oklo, whose stock price rose over 5.5% to $69.51 per share, stated its intention to develop this fuel with newcleo, a European company focused on building high-tech nuclear reactors. The other firms chosen by the U.S. Energy Department include privately held Exodys Energy, SHINE Technologies, Standard Nuclear, and Flibe Energy.
In a statement, Oklo noted that newcleo would contribute fuel experience and potential project capital, subject to agreements, approvals, and U.S. security and safeguards requirements. Jacob DeWitte, Oklo co-founder and CEO, said: "This program creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner. Material that has been set aside for disposal can instead be converted into fuel to produce electricity." Stefano Buono, newcleo CEO and founder, added that using the plutonium as fuel would reduce U.S. nuclear liabilities.
Opposition and Controversy
However, the plan has faced opposition. Democratic lawmakers have urged Donald Trump to cancel his surplus plutonium initiative, warning it poses a proliferation risk and involves enough plutonium to create 2,000 atomic bombs. Notably, U.S. Energy Secretary Chris Wright served on Oklo's board of directors before joining Trump's cabinet.
The department indicated that the Surplus Plutonium Utilization Program aims to help companies secure private funding. It did not immediately respond to a request for comment on how the program would ensure the safe handling of these materials.
