Idaho microreactor site work to begin with Sam Altman-backed nuclear startup Oklo.

• Oklo has been given the go-ahead to begin site investigation work for its planned microreactor in Idaho.
• The start date for Oklo's reactor may be delayed due to regulatory review, though the company aims for it to become operational in 2027.
• Jacob DeWitte, CEO, stated that the nuclear industry has experienced a "radical" decline in market interest.
• To change the paradigm, disruption was necessary, he stated.

Jacob DeWitte, CEO of the nuclear startup, revealed to CNBC in an interview that the company is getting closer to beginning construction of its first commercial microreactor.

On Wednesday, Oklo announced that it has received approval from the Department of Energy to carry out site investigations for the planned reactor at Idaho National Laboratory in Idaho Falls.

The investigations on the site will concentrate on infrastructure planning, environmental surveys, and geotechnical evaluations.

"This lays the foundation for carrying out the initial site preparation and construction activities," DeWitte stated. He anticipates Oklo to commence construction at the Idaho site in 2026, with the aim of having the reactor operational by the following year.

The Nuclear Regulatory Commission still needs to approve Oklo's construction and operation of the plant, as their first application was rejected in 2022. The CEO acknowledged that the 2027 start date may be delayed if the NRC review takes longer.

Oklo, a company that aims to provide power directly to customers through long-term contracts, went public in May through a merger with SPAC AltC Acquisition Corp., founded by OpenAI CEO Sam Altman. Altman now serves as Oklo's chairman.

The surge in electric demand is due to the tech sector's expansion of data centers for AI computations and the growth of domestic manufacturing, leading to increased electrification of the economy.

The Aurora microreactors, offered by the company, are designed to be smaller and simpler, with sizes ranging from 15 megawatts to 100 megawatts or more. In comparison, the average nuclear reactor in the current U.S. fleet is approximately 1,000 megawatts, as stated by the Department of Energy.

'Industry has radically fallen short'

Oko's stock has increased by approximately 26% since it announced plans to restart the Three Mile Island nuclear plant on Friday. Despite this, its shares have decreased by 54% since its initial listing on the NYSE.

DeWitte stated that the Three Mile Island restart serves as a "proof" of the tech industry's view on the importance of securing energy supplies as the demand for it continues to rise.

DeWitte stated that hyperscalers are attempting to secure the largest capacity from existing plants as much as possible, which makes sense because some of it can be the nearest-term power delivery.

The industry has failed to meet market demand due to its poor product offerings, business model, and execution, according to DeWitte.

""To change the paradigm, disruption has been necessary around certain elements, and that's where we have taken a different approach," he stated."

NRC review crucial

Despite its own challenges, Oklo has faced rejection from the NRC for its first license application due to incomplete safety information. It plans to resubmit its application in 2025, according to DeWitte. Currently, Oklo is undergoing a pre-application review process.

The denial of Oklo's first application was due to disruptions caused by the Covid-19 pandemic, which prevented in-person audits. Oklo submitted its application on March 11, 2020, the day the World Health Organization declared a pandemic.

The pandemic significantly altered the review process, according to DeWitte, due to communication difficulties that led to a lack of necessary information.

The CEO acknowledged that the NRC review could delay the 2027 start date for the Idaho microreactor, stating, "There's definitely risk. We can't control the NRC review timeline."

The recently enacted ADVANCE Act could provide Oklo with a tailwind by directing the NRC to expedite decisions on license applications for reactor construction and operation.

Future business

According to DeWitte, Oklo's business is not dependent on the timeline of the Idaho plant's online launch. The company has received 1,350 megawatts of interest through letters of intent from potential customers, which represents a 93% increase from the 700 megawatts of interest in July 2023, as stated in Oklo's recent earnings presentation.

The CEO stated that Oklo plans to launch plants online in "multiples per year" starting from 2028 to 2029. After that, the focus will be on scaling up the supply chain.

Oklo's microreactors are suitable for data centers, which are typically constructed in individual halls with energy requirements of less than 50 megawatts, similar to the size of the company's plants, according to the speaker.

DeWitte stated that they construct their modules in a similar manner to what they power, with the intention of building up with them.

The ban on uranium imports from Russia, which accounted for about 35% of the U.S. nuclear fuel imports, has been a significant challenge for Oklo, according to DeWitte. In May, the U.S. imposed a ban on uranium imports from Russia, which has had a significant impact on the U.S. nuclear fuel supply. To address this issue, the Biden administration has allocated $2.7 billion to support the development of domestic uranium production.

Oklo has a partnership with Centrus, a U.S.-based nuclear fuel supplier. Centrus started enrichment operations in Piketon, Ohio, last October, but the domestic supply chain is not producing at the scale required today, according to DeWitte. Nevertheless, Oklo has secured the fuel it needs for the Idaho plant.

The company's rectors will be able to recycle fuel, which will help diversify its supply chain, according to DeWitte. However, recycled fuel may not be available in significant quantities until 2029 or later, he said.

Oklo reported a net loss of $53 million for the six months ending June 30, as it has yet to generate any revenue. The company's first power plant will generate revenue when it becomes operational.

"When we activate the revenue operation, you'll typically be committed to a 20-year power purchase agreement, with the possibility of extending it even further," the CEO stated. "You'll receive revenues for the next 20 years and then continue to grow from there."