425: Oklo and AltC Discuss Nuclear-Powered Data Centers Ahead of Proposed Business Combination

Oklo executives discuss their business, nuclear technology, and the proposed business combination with AltC Acquisition Corp. in a podcast interview.

Summary

• Caroline Cochran, Co-Founder and COO of Oklo, and Brian Gitt, Head of Business Development at Oklo, discussed Oklo's business and nuclear technology in an interview.
• Oklo is an advanced fission technology company that is planning to go public via a SPAC called AltC.
• Cochran and Jacob DeWitte founded Oklo in 2013 and joined Y Combinator in 2014.
• Oklo's Aurora plant is named after a natural nuclear reactor that existed billions of years ago.
• Oklo is focused on micro-fission reactors, which differ from small modular reactors (SMRs).
• Oklo's reactor design is based on the EBR-II, a 20-megawatt sodium fast reactor that operated for 30 years at Idaho National Lab.
• This reactor design can recycle nuclear waste and is 'walk away safe,' meaning it is self-cooling and self-regulating.
• Oklo's business model involves offering power purchase agreements (PPAs) to customers, rather than selling reactors to utilities.
• The total capital cost for an Oklo plant is in the tens of millions of dollars, excluding fuel.
• Oklo is partnering with Siemens for power generation equipment.
• Oklo is working with Idaho National Lab to fabricate fuel recycled from EBR-II for its first plant.
• The company aims to have its first plant online and operating in 2026 or 2027.
• Oklo is also planning to build a full-scale recycling facility and is working with multiple enrichment providers to secure fuel supply.
• The company is targeting the data center industry as a key market for its clean and reliable energy solutions.
• Oklo is working with the Nuclear Regulatory Commission (NRC) to obtain a license to operate its plants.
• Oklo submitted its application in March 2020, but it was rejected and is planning to resubmit this year.
• The company expects the NRC review to take between 30 and 36 months.
• Oklo is also working on scaling up its supply chain and building a mega factory for recycling nuclear fuel.

Sentiment

Score: 7

Explanation: The document presents a positive outlook for Oklo's technology and business model, highlighting its potential to address the growing demand for clean and reliable energy. However, the regulatory challenges and supply chain constraints introduce some uncertainty.

Positives

• Oklo's reactor design is based on proven technology with over 400 reactor years of operation globally.
• The reactor is 'walk away safe,' reducing the risk of accidents.
• Oklo's reactor can recycle nuclear waste, addressing a key concern about nuclear power.
• The company's business model offers a PPA, simplifying the process for customers.
• Oklo is partnering with established companies like Siemens for power generation equipment.
• The company is targeting a growing market in the data center industry.
• Oklo is working with the NRC to obtain a license, demonstrating a commitment to regulatory compliance.
• The company is planning to build a full-scale recycling facility and is working with multiple enrichment providers to secure fuel supply.

Negatives

• The NRC rejected Oklo's initial application, requiring the company to resubmit.
• The NRC review process is expected to take 30-36 months, delaying the timeline for the first plant.
• There are limitations on the availability of enriched fuel material until Oklo's recycling facility is operational.
• The company faces challenges in scaling up its supply chain and building a mega factory for recycling nuclear fuel.

Risks

• Regulatory approval from the NRC is not guaranteed and could be delayed.
• Scaling up the supply chain and building a recycling facility may face unforeseen challenges.
• Competition from other energy sources and nuclear technology developers could impact Oklo's market share.
• Public perception of nuclear power could hinder adoption of Oklo's technology.
• The availability of enriched fuel material is limited and could impact Oklo's ability to build plants.
• The business combination with AltC may not be successfully consummated.

Future Outlook

Oklo aims to have its first plant online and operating in 2026 or 2027. The company is also planning to build a full-scale recycling facility and is working with multiple enrichment providers to secure fuel supply. They anticipate deploying plants with real rapidity once the initial licensing is complete, focusing on supply chain and scaling up recycling capabilities.

Management Comments

• 'It takes a long time. We were quiet for a long time. And then it's crazy how things speed up once you kind of nailed down some really key areas.' Caroline Cochran
• 'We wanted the right kind of arrangement, the simple one, one without a lot of games... It's really about financing the company to get through to building our first plant.' Caroline Cochran
• 'Oklo is doing something very similar to what Elon Musk did with SpaceX... There's no reason nuclear energy should be the cheapest form of energy.' Brian Gitt
• 'We're aggressively pursuing both paths at once. So we're already engaging with NRC on planning to build a full scale recycling facility.' Brian Gitt

Industry Context

The announcement comes amid growing interest in nuclear energy as a clean and reliable power source, particularly for energy-intensive industries like data centers. Several countries have pledged to triple their nuclear capacity by 2050. The data center industry is facing increasing pressure to decarbonize and secure reliable power sources, making advanced nuclear solutions like Oklo's increasingly attractive.

Comparison to Industry Standards

• Oklo's approach differs from traditional large-scale nuclear projects, which often face significant cost overruns and delays, such as the Vogtle Electric Generating Plant in Georgia.
• Unlike NuScale, which is developing small modular reactors (SMRs) with multiple reactors within a single plant, Oklo focuses on single, small reactors.
• Oklo's use of proven technology, like the EBR-II reactor design, contrasts with other advanced reactor developers who are pursuing novel designs that require extensive testing and regulatory approvals.
• The company's business model, offering PPAs, is similar to renewable energy projects, making it easier for customers to adopt nuclear power.
• Oklo's focus on recycling nuclear waste aligns with sustainability goals and could provide a cost advantage over traditional nuclear fuel sources.
• The company's partnership with Siemens Energy AG leverages existing power generation equipment, reducing development costs and timelines.

Stakeholder Impact

• Shareholders: The business combination with AltC could provide significant returns for shareholders.
• Employees: Oklo's growth could create new job opportunities.
• Customers: Data centers and other energy-intensive industries could benefit from access to clean and reliable power.
• Suppliers: Oklo's expansion could create new business opportunities for suppliers of nuclear fuel and other components.
• Creditors: Oklo's financial stability could improve as it secures contracts and begins generating revenue.

Next Steps

• Resubmit application to the NRC.
• Continue working with the NRC to obtain a license to operate its plants.
• Continue supply chain work.
• Continue working with Idaho National Lab to fabricate fuel recycled from EBR-II for its first plant.
• Continue to develop advanced fuel recycling technologies in collaboration with the U.S. Department of Energy and U.S. National Laboratories.
• Continue to build a full-scale recycling facility.
• Continue to work with multiple enrichment providers to secure fuel supply.
• Continue to target the data center industry as a key market for its clean and reliable energy solutions.
• Complete the business combination with AltC Acquisition Corp.

Key Dates