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Why OKLO's Reactor Design Is Built on Proven Nuclear Systems

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Key Takeaways

  • OKLO's reactor is based on liquid-metal-cooled, metal-fueled fast reactor technology.
  • The design builds on EBR-II, a reactor that ran for 30 years and provided passive safety features.
  • OKLO's approach supports recycling nuclear waste into fuel, lowering risk and boosting credibility.

Oklo Inc.’s (OKLO - Free Report) reactor concept is rooted in fast reactor technology that has been built, operated and validated over decades. Its design draws directly from liquid-metal-cooled and metal-fueled fast reactors, which collectively account for more than 400 reactor years of operating experience worldwide. This category of reactors includes the first nuclear power plant to generate electricity and offers inherent safety characteristics and the unique ability to use nuclear waste as fuel. OKLO deliberately selected this technology base to minimize technical uncertainty and rely on systems with demonstrated performance rather than untested concepts.

A key example behind Oklo’s design is the Experimental Breeder Reactor-II or EBR-II, which operated for about 30 years and generated roughly 20 megawatts of power. Tests showed the reactor could safely stabilize itself during severe conditions, without human action or emergency systems. Temperatures rose briefly, then settled naturally, proving “walk-away” safety works in practice.

Experimental Breeder Reactor-II also showed that used nuclear fuel could be recycled on site, turning waste into usable energy. This directly supports OKLO’s goal of reducing waste and improving fuel use. Building on a well-tested reactor type ensures lower risk for OKLO and stronger credibility than newer designs without real-world proof.

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 more than 200% over the past 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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Dominion Energy Inc. (D) - free report >>

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Oklo Inc. (OKLO) - free report >>

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