The US government has selected five companies, including nuclear energy firm Oklo, for advanced negotiations on the potential use of Cold War-era plutonium as nuclear reactor fuel.
The Department of Energy made the announcement on Tuesday (May 13). The department currently holds the US stockpile of surplus plutonium — with a half-life of 24,000 years, requiring handling in protective equipment — at heavily guarded weapons facilities in states such as South Carolina, Texas, and New Mexico.
Oklo, whose stock rose more than 5.5% to $69.51 per share, said it plans to develop fuel with Newcleo, a European company that builds high-tech nuclear reactors.
Reuters reported last year that the administration of President Donald Trump planned to supply approximately 20 tons of plutonium from dismantled nuclear warheads to US power companies. In May 2024, Trump ordered a halt to most of a program to dilute and dispose of surplus plutonium, instead providing it as fuel for advanced nuclear technology — a plan opposed by some Democrats.
In a letter dated September 2024, Senator Edward Markey (Massachusetts) along with Representatives Don Beyer (Virginia) and John Garamendi (California) argued that 20 tons of plutonium could be used to build about 2,000 nuclear bombs. They wrote that the move “raises serious proliferation concerns, has little economic rationale, and could adversely affect the nation’s defense posture,” and urged the agency to cancel the plan.
Other selected companies include Exodys Energy, SHINE Technologies, Standard Nuclear, and Flibe Energy, according to the Department of Energy statement.
Oklo said Newcleo would bring fuel expertise and potential project capital, subject to agreements, approvals, and US security and safety requirements. “This program creates a pathway for using existing surplus material as bridge fuel for advanced reactors, helping to bring more reactors into operation sooner,” said Jacob DeWitte, co-founder and CEO of Oklo. “Material once destined for disposal can be converted into fuel to generate electricity.”
Stefano Buono, CEO and founder of Newcleo, said using plutonium as fuel would reduce the US nuclear liability. Energy Secretary Chris Wright served on Oklo’s board before joining the Trump cabinet.
The department said the Surplus Plutonium Utilization Program will help companies raise private capital. The department did not immediately respond to a request for comment on how the program ensures the safe handling of these materials.
