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OKLO and Surplus Plutonium: A New Catalyst for Nuclear Growth

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Key Takeaways

  • OKLO is repurposing surplus plutonium as fuel for advanced fast-spectrum nuclear reactors.
  • Federal support and early safety approval enabled OKLO to begin building its fuel fabrication facility.
  • Criticality tests with Los Alamos showed plutonium fuel is safe and compatible with other reactor fuels.

Nuclear start-up Oklo Inc. ((OKLO - Free Report) ) sits at the center of a policy shift that is transforming surplus plutonium from a Cold War liability into a potential energy asset. Federal direction now favors repurposing material once destined for long-term disposal into advanced reactor fuel, addressing chronic domestic fuel shortages. Fast-spectrum reactors play a key role because they can use plutonium as fuel to produce electricity, reducing storage needs while helping bring next-generation nuclear power online sooner.

Fast reactors make this possible because they can safely use plutonium as fuel and are designed to automatically reduce reactions if conditions change, improving safety. This allows surplus plutonium to serve as a temporary fuel source while new uranium and recycling supplies scale up. OKLO moved this plan forward after receiving federal approval for early safety work on its fuel fabrication facility, allowing construction to begin and helping align fuel production with reactor development.

OKLO turned policy support into practical progress by running fast-spectrum plutonium criticality tests with Los Alamos National Laboratory at a national research facility. These experiments produced updated safety data needed to approve surplus plutonium for commercial reactors. The results showed that the fuel can be used safely and work alongside other fuel types, strengthening OKLO’s flexibility and helping speed up advanced nuclear development.

How Nuclear Peers Are Shaping Their Fuel Strategies

Entergy Corporation ((ETR - Free Report) ) is pushing ahead with next-generation nuclear technology to cut emissions and support cleaner energy goals. The company has obtained a permit in Mississippi for a potential reactor site and is engaging with industrial and tech clients — especially in AI and data — to explore partnerships for deploying small modular reactors (SMRs). These collaborations aim to tackle the financial and regulatory hurdles tied to developing next-generation nuclear projects.

Dominion Energy ((D - Free Report) ) is also taking major steps toward advancing nuclear power, particularly through SMR technology. In October 2024, Dominion signed an MOU with Amazon to study the possibility of installing SMRs at its North Anna facility in Virginia. As AI data centers drive up electricity demand, Dominion’s nuclear assets could provide a reliable, carbon-free energy source to meet this growing need.

The Zacks Rundown on OKLO

Shares of Oklo Inc. have surged more than 250% so far this year, breezing past the industry's growth.

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OKLO currently has an average brokerage recommendation (ABR) of 2.05 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 19 brokerage firms.

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See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past 30 days.

Zacks Investment Research Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.


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