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Can OKLO Turn Used Nuclear Fuel Into a Scalable Business?
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Key Takeaways
OKLO's fuel center could involve $1.68B in investment and create more than 800 jobs.
Licensing, engineering and NRC talks are underway, while Standard Nuclear could become another buyer.
OKLO says recycling could recover up to 95% of fuel energy, but commercial profitability remains unproven.
Oklo Inc. (OKLO - Free Report) is trying to make nuclear fuel recycling an important part of its business, not just a support service. Its planned Advanced Fuel Center in Oak Ridge, TN, would begin with a facility that reuses spent nuclear fuel. OKLO says the broader project could involve up to $1.68 billion of investment and create more than 800 jobs. The goal is to turn used fuel into material that can be used again in advanced reactors, including its Aurora powerhouses, while reducing dependence on outside fuel suppliers over time.
The project is still at an early stage, but OKLO has already started planning and regulatory work. The company says it has completed a licensing project plan and is in discussions with the U.S. Nuclear Regulatory Commission. It is also continuing facility design and engineering work. A June 2026 agreement with Standard Nuclear could create another buyer for recycled material, which may open a business opportunity beyond Oklo’s own reactors. OKLO also had about $3 billion in cash and marketable securities at June 30, providing financial flexibility despite losses.
The long-term opportunity could be meaningful because the United States has nearly 100,000 metric tons of used nuclear fuel in storage. OKLO says its recycling approach could recover up to 95% of the energy still left in that fuel. The process is also designed to reduce the amount of waste needing long-term storage while avoiding a separate stream of pure plutonium. Still, the business case is not proven. OKLO must secure approvals, build the facility, control costs and show that fuel recycling can work profitably at commercial scale.
This strategy differs from the approach taken by larger nuclear utilities, which are generally focused on expanding generation capacity, extending plant lives and securing long-term fuel supplies. Their plans rely more on established utility infrastructure than on building an integrated fuel-recycling business.
Different Paths to Nuclear Growth
Entergy Corporation (ETR - Free Report) is taking a more traditional route to nuclear growth, focusing on its existing fleet and plant upgrades rather than fuel recycling. Entergy is exploring output increases and license extensions across its nuclear sites, while a Louisiana customer agreement includes funding for nuclear-related efforts tied to data-center demand. Entergy also continues investing in gas, renewables and storage, giving it several ways to add dependable power.
NextEra Energy (NEE - Free Report) is following a more conventional nuclear strategy centered on generation and contracted fuel supply rather than recycling. NextEra Energy plans to restart the 615-MW Duane Arnold plant in Iowa by early 2029 and has fuel contracts extending through 2033. The proposed Dominion merger, if completed, would further expand NextEra Energy’s regulated utility footprint, supporting a broader scale-driven approach to meeting rising electricity demand.
The Zacks Rundown on OKLO
Shares of Oklo have lost some 71.2% over the past year, underperforming the industry's modest decline.
Image Source: Zacks Investment Research
OKLO currently has an average brokerage recommendation (ABR) of 1.92 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms.
Image Source: Zacks Investment Research
See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past 90 days.
Image Source: Zacks Investment Research
The company currently carries a Zacks Rank #4 (Sell).
View the Zacks #1 Rank List
Image: Bigstock
Can OKLO Turn Used Nuclear Fuel Into a Scalable Business?
Key Takeaways
Oklo Inc. (OKLO - Free Report) is trying to make nuclear fuel recycling an important part of its business, not just a support service. Its planned Advanced Fuel Center in Oak Ridge, TN, would begin with a facility that reuses spent nuclear fuel. OKLO says the broader project could involve up to $1.68 billion of investment and create more than 800 jobs. The goal is to turn used fuel into material that can be used again in advanced reactors, including its Aurora powerhouses, while reducing dependence on outside fuel suppliers over time.
The project is still at an early stage, but OKLO has already started planning and regulatory work. The company says it has completed a licensing project plan and is in discussions with the U.S. Nuclear Regulatory Commission. It is also continuing facility design and engineering work. A June 2026 agreement with Standard Nuclear could create another buyer for recycled material, which may open a business opportunity beyond Oklo’s own reactors. OKLO also had about $3 billion in cash and marketable securities at June 30, providing financial flexibility despite losses.
The long-term opportunity could be meaningful because the United States has nearly 100,000 metric tons of used nuclear fuel in storage. OKLO says its recycling approach could recover up to 95% of the energy still left in that fuel. The process is also designed to reduce the amount of waste needing long-term storage while avoiding a separate stream of pure plutonium. Still, the business case is not proven. OKLO must secure approvals, build the facility, control costs and show that fuel recycling can work profitably at commercial scale.
This strategy differs from the approach taken by larger nuclear utilities, which are generally focused on expanding generation capacity, extending plant lives and securing long-term fuel supplies. Their plans rely more on established utility infrastructure than on building an integrated fuel-recycling business.
Different Paths to Nuclear Growth
Entergy Corporation (ETR - Free Report) is taking a more traditional route to nuclear growth, focusing on its existing fleet and plant upgrades rather than fuel recycling. Entergy is exploring output increases and license extensions across its nuclear sites, while a Louisiana customer agreement includes funding for nuclear-related efforts tied to data-center demand. Entergy also continues investing in gas, renewables and storage, giving it several ways to add dependable power.
NextEra Energy (NEE - Free Report) is following a more conventional nuclear strategy centered on generation and contracted fuel supply rather than recycling. NextEra Energy plans to restart the 615-MW Duane Arnold plant in Iowa by early 2029 and has fuel contracts extending through 2033. The proposed Dominion merger, if completed, would further expand NextEra Energy’s regulated utility footprint, supporting a broader scale-driven approach to meeting rising electricity demand.
The Zacks Rundown on OKLO
Shares of Oklo have lost some 71.2% over the past year, underperforming the industry's modest decline.
OKLO currently has an average brokerage recommendation (ABR) of 1.92 on a scale of 1 to 5 (Strong Buy to Strong Sell), calculated based on the actual recommendations (Buy, Hold, Sell, etc.) made by 24 brokerage firms.
See how the Zacks Consensus Estimate for OKLO’s earnings has been revised over the past 90 days.
The company currently carries a Zacks Rank #4 (Sell).
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.