Oklo taps Siemens Energy to help power its nuclear reactor
Oklo Inc. (OKLO) said on Wednesday that it had signed a binding contract with Siemens Energy that calls for Siemens to design and deliver the power conversion system for the nuclear startup's Aurora powerhouse at the Idaho National Laboratory (INL).
Oklo said that the agreement authorizes Siemens to initiate the engineering and design work in order to accelerate procurement of long-lead components and initiate the manufacturing process for the power conversion system.
A nuclear power conversion system converts the heat from a nuclear reaction into electricity, typically by using the heat to create steam that spins a turbine, which then drives a generator.
Siemens manufactures steam turbine and generator systems that are used in developing clean energy.
According to a press release announcing the agreement, Siemens will conduct detailed engineering and layout activities for a condensing SST-600 steam turbine, an SGen-100A industrial generator and other auxiliaries that will be used for Oklo's Aurora powerhouse.
Oklo noted that Siemens' power conversion system "represents one of the major long-lead procurements required to commence power operations of the Aurora powerhouse."
"We offer best-in-class solutions for reliable power supply with the highest efficiency," Tobias Panse, senior vice president for steam turbines and generators at Siemens, said in a statement. "Oklo’s small modular reactor solutions are ideal for companies with large power demand. This agreement brings our partnership to life.”
Other key procurement areas include fuel and the allocation of the site, both of which Oklo already has secured. The contract with Siemens will "de-risk supply chain and production timeline challenges and demonstrates concrete execution capability," Oklo said.
The company will be launching a small modular reactor (SMR) at the Aurora site. SMRs are being touted as key to helping power the proliferation of AI data centers, although there has not been an SMR launched in the US yet.
Oklo is expected to launch its SMR in 2030.
“Aurora’s inherent safety allows us to use proven, commercially available power systems like Siemens Energy’s turbine technology,” Alex Renner, Oklo’s chief product officer, said in a statement. “That design philosophy shortens timelines, lowers costs, and turns advanced nuclear into a deployable product.”
Oklo's stock has been on a tear, soaring 384.5% for the year. It jumped another 6.5% on Wednesday.
Despite the company having yet to generate any revenue and reporting mounting losses in its recent third-quarter earnings, Wall Street remains bullish on its future growth.
Wedbush analyst Dan Ives said in a recent client note that "Oklo is setting the stage for nuclear energy to become widely adopted over the next decade as the AI Revolution data center buildout is driving significant demand for new energy to power these initiatives with necessary computing power expected to grow 10x."