Sam Altman’s Oklo starts work to bring nuclear microreactor online by 2027

Oklo, the nuclear energy company backed by Sam Altman, will begin preparatory work on a site in Idaho, where it could set up its first reactor as early as 2027. The Department of Energy (DOE) granted Oklo access to its preferred site at Idaho Falls in a recently announced Memorandum of Agreement (MOA).

The recent surge of artificial intelligence (AI) powered products in the tech industry has been accompanied by a demand for new data centers. Capable of processing large amounts of information, these data centers also consume large amounts of energy.

In a bid to avoid fossil fuels, tech companies have turned to renewable energy sources to meet their energy demands. However, with energy requirements expected to surge even further as the competition in AI space intensifies, companies are also keen on using nuclear fission instead.

Last week, Microsoft announced that its data centers would be powered by a previously shut-down nuclear fission facility at Three Mile Island. Sam Altman-backed Oklo has slightly different plans.

Power of small modular reactors

Instead of a full-scale nuclear fission plant, Oklo’s vision is to set up small modular reactors (SMR) or microreactors that can produce energy in the range of 15 – 100 megawatts (MW). In comparison, an average fission reactor produces 1,000 MW of output.

At its scale, Oklo’s technology will not be powering households or large factories via the grid. Instead, it will supply energy directly to facilities, such as data centers. A smaller output reactor will also shrink land usage. Oklo expects its power plants to occupy no more than two acres or 10,000 square yards of land.

Oklo’s reactors also do not use water to cool down the reactor, allowing them to be set up even in remote locations. Oklo is also working on recycling its spent nuclear fuel to maximize energy generation potential.

What happens next?

The MOA grants Oklo access to its preferred site and allows it to carry out investigations such as geotechnical assessments, environmental surveys, and infrastructure planning.

“Signing this MOA reflects our commitment to timely deployment and operational readiness while also helping to manage costs and maintain our project schedule,” said Jacob DeWitte, Co-Founder and CEO of Oklo, in a statement.

Oklo plans to break ground in 2026 and have the first advanced fission reactor in the US by 2027. However, approval from the Nuclear Regulatory Commission (NRC) is a major stumbling block that needs to be overcome first.

2022, the NRC rejected Oklo’s application to build and operate a reactor. Speaking to CNBC , the company CEO attributed this to disruptions caused by the COVID-19 pandemic since its application was filed in 2020.

The company now hopes to submit its application by 2025 and receive approval by 2027. The recently enacted ADVANCE Act could help speed up the NRC’s decision timeline and pave the way for the first advanced nuclear fission reactor in the US.

Oklo , which went public, last year, will not generate any revenue till it begins generating power. The company is, however, looking at long-term power purchase agreements directly with customers to bring in revenue for horizons of 20 years and beyond.