In 2024, Oklo, a startup backed by Sam Altman, experienced a significant increase, climbing up by an impressive 101%.
With the growing demand for clean energy, particularly in the tech sector, one company aiming to lead the charge is Oklo (+0.31%). This nuclear technology company has caught the attention of investors, with its stock soaring an impressive 101% in 2024, according to S&P Global Market Intelligence.
The hype surrounding Oklo stems from its innovative small modular reactors (SMRs) that utilize fast neutrons to maintain a self-sustaining fission chain reaction. These SMRs not only offer clean energy solutions but also tap into the vast energy potential of nuclear waste, estimated to provide energy for the next 100 years in the U.S. Given the energy needs of tech giants and their push towards carbon reduction, SMRs have gained traction as a reliable and sustainable energy source.
Oklo's driving force includes notable investors like Sam Altman, co-founder of OpenAI. The company went public in May 2024 through a merger with AltC Acquisition. In November, it secured commitments from two major data center providers, potentially delivering up to 750 megawatts (MW) of energy, significantly expanding its customer pipeline. To top it off, Oklo signed a nonbinding agreement with Switch to deploy 12 gigawatts of power through 2044, marking one of the largest power agreements in history.
But what can we anticipate in the future for Oklo? While SMRs are still years from reaching operational status, Oklo is determined. In the first half of 2025, they plan to submit their Combined License Application (COLA) to the U.S. Nuclear Regulatory Commission, paving the way for future applications. The company also aims to break ground on the Idaho National Laboratory in 2027, deploying a 15-MW reactor. The phased rollout will likely see many experts predicting widespread use of SMRs around the 2030s, but Oklo has its sights set on a sooner timeline.
Investors should be aware that past SMR projects have faced cost escalations and significant delays, such as NuScale Power's Utah project, which led to a termination of its 2015 agreement in late 2023. However, Oklo's unique commitment to minimal capital investment and energy-efficient solutions could set it apart from the competition.
Given the complex regulatory environment, Oklo requires the NRC's approval to move forward. The company's potential partnerships with Lightbridge and RPower could provide crucial fuel reprocessing and deployment support. Despite strength in cash reserves, Oklo may require additional funding to commercial-scale deployment, which could introduce risk to investors.
In summary, Oklo's innovative SMRs and commitment to clean energy have caught the eyes of investors, while partnerships and phased deployment offer hope for commercial success. Although challenges persist in regulation, financing, and market shifts, Oklo's future projects remain promising.
The surge in interest from investors in Oklo can be attributed to its potential to revolutionize the finance landscape of the clean energy sector. With its innovative SMRs providing a sustainable energy solution for tech giants, investing in Oklo could yield significant returns in the long term.
As Oklo continues to secure partnerships and make progress in the regulatory environment, investors may want to consider this as an opportunity to diversify their portfolios in the finance sector, focusing on clean energy and innovative technology.
