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OKLO's Fast Reactor Promise: Safe, Clean and Fuel Recycling

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Key Takeaways

  • Oklo is developing the Aurora powerhouse, a liquid-metal-cooled, fast reactor design.
  • The system is passively safe, stabilizing temperatures without human control or power.
  • Oklo's reactor can recycle used nuclear fuel, reducing waste and boosting sustainability.

Oklo Inc. ((OKLO - Free Report) ) is working on a next-generation nuclear design called the Aurora powerhouse. At its core is a liquid-metal-cooled, metal-fueled fast reactor, a technology that has already been tested for decades around the world. In fact, this type of system has logged more than 400 years of combined operating experience. What makes it stand out is its natural ability to regulate itself. Unlike conventional reactors, it does not need constant human control to stay safe, as its design is self-stabilizing and passively safe.

This inherent safety is a key feature of the design. The reactor is cooled by natural forces and has been shown to be "walk-away safe," with its temperature automatically stabilizing even during a complete loss of power and coolant flow. This was demonstrated at the Experimental Breeder Reactor-II, which was used to prove the passive safety characteristics of this design. The system is designed to prevent accidents before they can happen. By relying on natural physical processes for cooling and control, the design eliminates many of the risks tied to traditional nuclear plants.

Beyond safety, Oklo's technology is also capable of recycling used nuclear fuel. This unique capability allows the Aurora powerhouse to take what is typically considered waste and convert it into a valuable energy source. By utilizing this otherwise discarded fuel, the company aims to reduce nuclear waste and create a more sustainable and cost-effective fuel cycle. This focus on recycling is a major point of differentiation in the nuclear energy space.

Peer Comparison

NuScale Power’s ((SMR - Free Report) ) innovation centers on its Power Module, a small modular reactor (or ‘SMR’). This NuScale design is the first of its kind to receive approval from the U.S. Nuclear Regulatory Commission. The NuScale module, which uses proven pressurized water technology, is designed to be manufactured in a factory and shipped to the plant site for easy installation.

Meanwhile, Dominion Energy ((D - Free Report) ) operates seven nuclear reactors across multiple states, providing carbon-free electricity. Dominion Energy is also focused on the future of nuclear power and is actively exploring SMR technology. To this end, Dominion Energy issued a request for proposals for an SMR, as it evaluates its options for meeting future customer energy needs.

The Zacks Rundown on OKLO

Shares of Oklo have surged nearly 247% so far this year.

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From a valuation perspective — in terms of the trailing 12-month price-to-book (P/B) ratio — Oklo is trading at a significant premium compared to the industry average.

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See how the Zacks Consensus Estimate for Oklo’s earnings has been revised over the past 60 days.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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