SANTA CLARA, Calif. - Oklo Inc. (NYSE: OKLO), a company specializing in clean power technology and nuclear fuel recycling, has announced a Preferred Supplier Agreement with Siemens Energy for the power conversion system of its Aurora powerhouse. This move is aimed at advancing the commercialization of Oklo's cost-efficient advanced fission technology.
Siemens Energy, known for its steam turbine and generator technology, will provide power conversion and supporting systems that are part of the conventional island in nuclear generation plants. The partnership is expected to yield cost savings in manufacturing, construction, operations, and maintenance for Oklo by standardizing equipment across its powerhouses. Moreover, shared spare parts are anticipated to reduce maintenance downtime and enhance the reliability and performance of the powerhouses.
Oklo's co-founder and CEO, Jacob DeWitte, emphasized the company's focus on cost in engineering to maximize the advantages of fast fission technology. Oklo's approach uses liquid metal as a coolant, which allows for operation at high temperatures without pressurization, simplifying design and reducing costs by leveraging existing supply chains for commonly available materials.
The collaboration with Siemens Energy comes as Oklo has garnered significant market interest, with over 1,300 megawatts in non-binding letters of intent. Alex Renner, Oklo's Chief Product Officer, expressed the company's commitment to providing innovative and economically viable advanced fission clean energy solutions.
Oklo has previously received a site use permit from the U.S. Department of Energy, obtained fuel material from Idaho National Laboratory, submitted the first advanced fission custom combined license application to the Nuclear Regulatory Commission, and is developing advanced fuel recycling technologies.
The press release also contains forward-looking statements regarding the partnership's expected timing, goals, and benefits. However, these statements are subject to various risks and uncertainties, including those related to the deployment of Oklo's powerhouses, the emerging market for advanced fission technology, regulatory uncertainties, and the need for financing.
Investors and interested parties should note that the information provided is based on a press release statement from Oklo Inc.
In other recent news, Oklo Inc. has made significant strides in nuclear fuel recycling technology. The company has successfully demonstrated its advanced fuel recycling process, a development that is crucial in Oklo's plans to establish a commercial-scale recycling facility.
This project, backed by a $5 million cost-share award from the U.S. Department of Energy's Advanced Research Projects Agency-Energy, is expected to reduce high-level nuclear waste and promote safe, domestic fuel sources. Oklo's technology aims to recover over 90% of the energy remaining in used nuclear fuel, which can then be repurposed to generate clean energy.
On the financial front, Oklo anticipates up to an 80% reduction in fuel costs through the adoption of its recycling operations. This is expected to result from improved fuel efficiency, the creation of alternative fuel sources, and a decrease in the volume of high-level waste needing permanent disposal. Citi has reaffirmed its neutral stance on Oklo, maintaining a price target of $11.00, focusing on the potential of Small Modular Reactors, particularly given the rising demand from data centers.
Lastly, Oklo has filed a registration statement with the U.S. Securities and Exchange Commission for 62,440,080 shares of common stock, which are not newly issued but were previously unregistered for resale. This filing is a procedural step following the company's initial business combination and does not immediately create freely tradable shares. All are subject to either lock-up restrictions or performance vesting requirements.
InvestingPro Insights
As Oklo Inc. (NYSE: OKLO) solidifies its partnership with Siemens Energy, aiming to streamline the commercialization of its advanced fission technology, investors are closely monitoring the company's financial health and stock performance. According to InvestingPro data, Oklo's market cap stands at a notable $860.78 million. Despite the company's innovative strides in clean power technology, analysts hold a cautious stance as reflected in the P/E ratio, which is currently negative at -0.67, indicating that Oklo is not currently generating profits relative to its share price.
InvestingPro Tips reveal that Oklo's stock has experienced significant volatility, with a price total return of -33.68% over the past six months, and it is trading near its 52-week low. This high price volatility is a critical factor for investors to consider, especially those with a lower risk tolerance.
Moreover, analysts do not expect Oklo to turn profitable this year, which aligns with the company's negative operating income of -$22.67 million over the last twelve months as of Q1 2024. Nevertheless, it's worth noting that Oklo's liquid assets surpass its short-term obligations, providing some financial flexibility in the near term.
For investors seeking a deeper dive into Oklo's financials and stock performance, there are additional InvestingPro Tips available, offering a comprehensive analysis to inform investment decisions. The platform currently lists 12 more tips for Oklo Inc., which can be accessed through InvestingPro's dedicated page for the company at https://www.investing.com/pro/OKLO.
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