Oklo(OKLO) announced last week its plans for a $1.68-billion facility in Tennessee that will convert nuclear waste into fuel, which is a first-of-its-kind operation in the U.S.
The small modular reactor (SMR) startup is launching the first phase of the project – a recycling center that will convert the used nuclear fuel into fuel for fast reactors – in the city of Oak Ridge.
“Fuel is the most important factor in bringing advanced nuclear energy to market,” said Oklo founder and CEO Jacob DeWitte.
“By recycling used fuel at scale, we are turning waste into gigawatts, reducing costs, and establishing a secure U.S. supply chain that will support the deployment of clean, reliable, and affordable power.”
Oklo, like many of the other nuclear startups that have sprung up in recent years, uses a type of uranium fuel to power its SMR that is not widely available at the moment.
And with the Trump administration’s policies to ramp up the production of domestic nuclear energy leading to the planned launch of many new reactors, recycling centers like the one Oklo is building will be necessary to handle the growth in nuclear waste.
The company said that it is also exploring opportunities with the Tennessee Valley Authority (TVA) to recycle the energy company’s used fuel at the new facility and then evaluate potential power sales from future Oklo powerhouses in the region back to TVA.
TVA, which is the largest public energy provider in the U.S., also entered into a landmark partnership last week with NuScale Power Corporation (SMR) and ENTRA1 Energy to deliver 6 gigawatts of SMR power across the Tennessee region.
It will be the largest SMR deployment in U.S. history. The rollout will cover TVA’s seven-state service territory and provide enough power for 4.5 million homes or roughly 60 new data centers.
“The next generation of nuclear technologies are being built and developed right here in our own backyard,” said TVA President and CEO Don Moul. “Our partnership with Oklo represents yet another step forward in shaping the future of nuclear energy and ensuring a secure energy future for the Valley and beyond."
Investors grow bullish on Oklo’s place in nuclear renaissance
Meanwhile, Oklo said that it has completed a licensing project plan for the fuel recycling facility with the U.S. Nuclear Regulatory Commission (NRC) and is currently in pre-application engagement with the regulator’s staff.
President Trump signed a sweeping set of executive orders in May aimed at accelerating the deployment of nuclear energy as AI data centers demand massive energy loads, including one directive for “total and complete reform” of the NRC.
Under the new mandate, the NRC must issue reactor license decisions within 18 months and generally speed up the process of granting approvals across the board.
Oklo’s planned facility in Tennessee is expected to begin producing metal fuel for its Aurora powerhouses by the early 2030s, pending regulatory review and approvals.
The company is seen by many as likely being a major player as the U.S. ramps up nuclear power production – and its stock reflects this optimism, surging 228.7% YTD.
Oklo earlier this summer announced a “strategic alliance” with Liberty Energy (LBRT) to deliver integrated power solutions for some of the world’s thirstiest energy consumers: data centers, industrial facilities, and utility-scale sites.
The plan is to pair Liberty’s natural gas power and load-balancing tech with Oklo’s nuclear microreactors to create a hybrid, turnkey energy solution.
In the short term, Liberty’s Forte natural gas tech will handle immediate demand and grid management. Once Oklo’s Aurora reactors come online — currently pushed from late 2027 to early 2028 — nuclear power will kick in to deliver low-cost, zero-carbon baseload capacity.
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