Oklo Inc. Oklo is rethinking how energy is generated, and the center of its strategy is fuel recycling. Unlike conventional reactors that use only 5% energy content of nuclear fuel, Oklo's special “fast reactor” is intended to take advantage of the other 95% that are usually thrown away. This means the company can turn foods that are often considered hazardous nuclear waste into valuable sources of clean, reliable energy. This is a clever solution to solve a big junk problem while powering homes and businesses.
Oklo's approach brings it a major advantage. By building its own fuel supply chain and developing its own recycling technology, the company hopes to keep its long-term costs down and stay ahead of the pack. The U.S. Department of Energy seems confident in this direction to choose OKLO for four recycling-related projects, totaling more than $15 million. These initiatives are designed to advance waste technology that may support the company’s long-term fuel strategy and drive meaningful innovations in the industry.
The meaning is shocking. According to Oklo, all used nuclear fuels that the United States has stored contain enough energy to provide the country with more than 150 years of energy. By leveraging this dormant supply, Oklo not only needs to start a new type of power plant, but also can completely redefine the future of nuclear energy.
Break down fuel strategies for nuclear competitors
Entergy Corporation ETR is advancing its exploration of next-generation nuclear technology to further reduce emissions. Entergy has obtained a license for a potential new reactor site in Mississippi and is trying to interact with industrial customers and technology companies, especially technology companies in the AI and data sectors, to deploy potential partnerships for small modular reactors (SMRs). Entergy's collaboration aims to jointly address the financial and regulatory challenges of next-generation nuclear projects.
Domination of energy D is also actively investing in the future of nuclear energy, especially through the exploration of small modular reactor (SMR) technologies. In October 2024, Dominion signed a Memorandum of Understanding (MOU) with Amazon to assess the feasibility of deploying SMR at its North Anna facility in Virginia. As AI-powered data centers rapidly increase power consumption, Dominion’s nuclear power assets offer scalable, all-weather zero-carbon solutions to support this surge in demand.
Zacks' summary on Oklo
Oklo's share price has soared 260% so far this year.
From a valuation perspective, Oklo's price is 12 months (P/B) ratio compared to the industry average.
See how Zacks has made a consensus estimate of OKLO's earnings over the past 60 days.
The stock currently carries Zacks Ranking 4 (sell).
You can see A complete list of today's Zacks Ranking No. 1 (Strong Buy) stocks.
This article was originally published on Zacks Investment Research (Zacks.com).
Zacks Investment Research