(Reuters) -Nuclear technology firm Oklo said on Friday it has signed an agreement with Europe-based newcleo to develop advanced fuel fabrication and manufacturing infrastructure in the U.S.
Under the agreement, nuclear reactor developer newcleo plans to invest up to $2 billion. Sweden’s advanced nuclear technology developer Blykalla is also considering co-investing in the same projects and procuring fuel-related services from them.
Shares of Sam Altman-backed Oklo were up 1.7% in premarket trading.
Nuclear power in the U.S. has been gaining traction after decades of stagnation, fueled by surging electricity demand from energy-hungry data centers and the electrification of transportation and manufacturing industries.
The investments announced on Friday, which will include multiple projects, will be regulated by the U.S. to promote transatlantic cooperation and enhance energy security, with further details on specific projects to be disclosed in upcoming agreements.
In September, the U.S. energy department had selected Oklo, along with three other companies for its pilot program to build advanced nuclear fuel lines as part of Trump administration’s efforts to strengthen domestic supply chains.
Oklo CEO Jacob DeWitte said fissioning surplus plutonium is the best way to eliminate a legacy liability while creating an abundant near-term fuel source.
“It can accelerate the deployment of multiple gigawatts of advanced reactors and serve as a bridge fuel until uranium enrichment and recycling scale up,” DeWitte said.
(Reporting by Pooja Menon in Bengaluru; Editing by Shilpi Majumdar and Mrigank Dhaniwala)
