Oklo shares rise 11% after DOE picks firm for plutonium fuel

Shares of Oklo Inc. rose sharply on Tuesday after the nuclear technology company announced it had been selected by the U.S. Department of Energy for advanced negotiations under a program to repurpose surplus plutonium into reactor fuel. The stock climbed as much as 11 percent during the trading session.

The Department of Energy's Surplus Plutonium Utilization Program aims to convert approximately 20 metric tons of weapons-grade plutonium, a Cold War-era legacy material, into fuel suitable for advanced nuclear reactors. Oklo was one of five companies chosen to enter into detailed negotiations for the initiative. The selection moves the company into a negotiation phase, which is a preliminary step and does not constitute a final contract award.

Oklo plans to partner with the European advanced reactor developer newcleo on the effort. The two firms announced a strategic partnership last October, which included a potential investment of up to $2 billion from a newcleo-affiliated vehicle for advanced fuel fabrication infrastructure in the United States. Under the proposed arrangement, Oklo would lead U.S. utilization of the surplus material while newcleo would contribute fuel...