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OKLO's Aurora Reactor: New Design, Proven Nuclear Principles
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Key Takeaways
OKLO is building Aurora on fast-reactor technology with more than 400 reactor-years of operating experience.
EBR-II tests showed the reactor could naturally reduce power and stabilize after coolant pumps were shut off.
OKLO plans recycled EBR-II fuel for Aurora-INL, targeting operations in late 2027 to early 2028.
Oklo Inc.’s (OKLO - Free Report) Aurora Powerhouse is based on a type of nuclear reactor that has already been tested and operated for decades. Fast reactors, which use liquid metal such as sodium to carry away heat, have more than 400 reactor-years of operating experience worldwide. One important example is the Experimental Breeder Reactor-II, or EBR-II. It operated for about 30 years and generated roughly 20 megawatts of electricity, giving OKLO a proven technical base for developing Aurora.
EBR-II is especially important because it showed how this type of reactor can protect itself during serious problems. In safety tests, operators intentionally switched off coolant pumps and stopped normal shutdown systems from working. Even so, the reactor naturally reduced its power and stabilized. Aurora uses similar principles. If electricity or pumps fail, hot sodium can continue moving naturally to remove heat. As the reactor gets hotter, its metal fuel expands, which automatically slows the nuclear reaction and prevents overheating.
OKLO is also applying lessons from EBR-II to its fuel strategy. The company plans to use recycled EBR-II fuel in the first Aurora-INL reactor, and equipment for its fuel-fabrication facility is already being manufactured. Aurora-INL has also received an important Department of Energy safety approval that allows final design and construction work to move ahead. Oklo currently targets operations in late 2027 to early 2028. Aurora itself is new, but much of the technology behind it has already been demonstrated in real reactors.
Peer Comparison
NuScale Power (SMR - Free Report) bases its approach on a light-water small modular reactor that uses conventional low-enriched uranium fuel available from established suppliers. NuScale Power remains the only small modular reactor developer with NRC design certification, while critical-path component design is substantially complete and supplier agreements cover more than half its network. NuScale Power is also advancing potential deployments with TVA through ENTRA1 and the six-module RoPower project in Romania.
NextEra Energy (NEE - Free Report) , the name the combined company will retain after its merger with Dominion Energy, would bring together an established nuclear operating base rather than a new reactor design. NextEra Energy expects the combined business to own the second-largest nuclear fleet in the United States, backed by its wider utility operations. Subject to approvals, NextEra Energy and Dominion expect the merger to close in the second half of 2027.
The Zacks Rundown on OKLO
Shares of Oklo have lost more than 38% so far this year, underperforming the industry's marginal growth.
Image Source: Zacks Investment Research
OKLO currently has an average brokerage recommendation of 1.96 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past month.
Image Source: Zacks Investment Research
The stock currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
OKLO's Aurora Reactor: New Design, Proven Nuclear Principles
Key Takeaways
Oklo Inc.’s (OKLO - Free Report) Aurora Powerhouse is based on a type of nuclear reactor that has already been tested and operated for decades. Fast reactors, which use liquid metal such as sodium to carry away heat, have more than 400 reactor-years of operating experience worldwide. One important example is the Experimental Breeder Reactor-II, or EBR-II. It operated for about 30 years and generated roughly 20 megawatts of electricity, giving OKLO a proven technical base for developing Aurora.
EBR-II is especially important because it showed how this type of reactor can protect itself during serious problems. In safety tests, operators intentionally switched off coolant pumps and stopped normal shutdown systems from working. Even so, the reactor naturally reduced its power and stabilized. Aurora uses similar principles. If electricity or pumps fail, hot sodium can continue moving naturally to remove heat. As the reactor gets hotter, its metal fuel expands, which automatically slows the nuclear reaction and prevents overheating.
OKLO is also applying lessons from EBR-II to its fuel strategy. The company plans to use recycled EBR-II fuel in the first Aurora-INL reactor, and equipment for its fuel-fabrication facility is already being manufactured. Aurora-INL has also received an important Department of Energy safety approval that allows final design and construction work to move ahead. Oklo currently targets operations in late 2027 to early 2028. Aurora itself is new, but much of the technology behind it has already been demonstrated in real reactors.
Peer Comparison
NuScale Power (SMR - Free Report) bases its approach on a light-water small modular reactor that uses conventional low-enriched uranium fuel available from established suppliers. NuScale Power remains the only small modular reactor developer with NRC design certification, while critical-path component design is substantially complete and supplier agreements cover more than half its network. NuScale Power is also advancing potential deployments with TVA through ENTRA1 and the six-module RoPower project in Romania.
NextEra Energy (NEE - Free Report) , the name the combined company will retain after its merger with Dominion Energy, would bring together an established nuclear operating base rather than a new reactor design. NextEra Energy expects the combined business to own the second-largest nuclear fleet in the United States, backed by its wider utility operations. Subject to approvals, NextEra Energy and Dominion expect the merger to close in the second half of 2027.
The Zacks Rundown on OKLO
Shares of Oklo have lost more than 38% so far this year, underperforming the industry's marginal growth.
OKLO currently has an average brokerage recommendation of 1.96 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 23 brokerage firms.
See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past month.
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.