Oklo (NYSE:OKLO) shares jumped on Tuesday after the company said it has been selected by the US Department of Energy (DOE) for advanced negotiations under the Surplus Plutonium Utilization Program, a federal initiative aimed at converting designated surplus plutonium into fuel for advanced nuclear reactors.
The program is designed to make surplus plutonium available to selected industry participants, subject to US security, safeguards and material accountability requirements, and enable its conversion into reactor fuel as part of broader advanced nuclear development efforts. Oklo was selected alongside four other advanced nuclear companies.
The selection supports Oklo’s broader fuel strategy, which includes multiple pathways to secure fuel supply for its planned advanced reactor deployments while domestic enrichment and nuclear fuel infrastructure continue to scale.
Under the proposed framework, Oklo would work with European advanced nuclear developer newcleo to lead utilization of surplus plutonium, while newcleo would contribute fuel expertise and potential project capital, subject to definitive agreements, customary regulatory approvals, and applicable US security and safeguards requirements.
The companies said the initiative is intended to support a “disposition through use” approach, converting existing surplus material into reactor fuel that can generate electricity while being consumed through fission under strict controls. Oklo has described fuel availability as a key constraint for scaling advanced reactor deployment.
“Fuel supply constraints are a key throttle to advanced reactor development,” Oklo CEO Jacob DeWitte said in a statement. “This program creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner.”
newcleo CEO Stefano Buono said the collaboration reflects efforts to reduce nuclear liabilities through fuel cycle innovation. “We are proud of this transatlantic partnership with Oklo to deliver on our promise of reducing nuclear liabilities through our fuel and reactor technologies,” he said.
Wedbush analysts wrote in a note to clients that the DOE selection adds another potential fuel pathway for Oklo, alongside HALEU enrichment, used fuel recycling, and its A3F fuel fabrication program.
They described the surplus plutonium initiative as incremental optionality rather than a near-term commercial catalyst, noting that key agreements and regulatory approvals are still required.
The analysts added that the selection represents validation of Oklo’s October 2025 partnership with newcleo, which included plans for potential investment and collaboration on fuel fabrication infrastructure.
However, they do not expect the development to materially alter deployment timelines for Oklo’s Aurora-INL commercial operations, currently targeted for late 2027 or early 2028, or its previously stated 2026 criticality milestone.
Wedbush maintained its ‘Outperform’ rating on Oklo shares with a $110 price target.
“With the AI Revolution underway, the industry will need roughly a tenfold increase in computing power by 2030 which takes up a tremendous amount of energy and we believe that OKLO will become a long-term winner in the nuclear energy buildout taking place,” they wrote.
Shares of Oklo added 7% on Tuesday afternoon at about $71.