425: Oklo CEO Discusses Nuclear Energy and Business Combination with AltC in UBS Interview

Oklo's CEO, Jacob DeWitte, highlights the company's innovative approach to nuclear energy, focusing on business model modernization, advanced reactor technology, and scalable reactor sizes, during an interview about the proposed business combination with AltC Acquisition Corp.

Summary

• Oklo's CEO, Jacob DeWitte, participated in an interview discussing Oklo's business, nuclear energy, and the proposed business combination with AltC Acquisition Corp.
• DeWitte emphasized the exciting time for nuclear technology, driven by its potential for clean, reliable, and affordable energy.
• Oklo focuses on modernizing the nuclear industry through a different business model, advanced technology, and scalable reactor sizes.
• The company aims to sell power through power purchase agreements, similar to renewable energy models.
• Oklo's technology is based on liquid metal-cooled fast reactors, drawing lineage from the Experimental Breeder Reactor-II (EBR-II) in Idaho.
• The company is offering 15 MW and 50 MW systems, with potential scalability, focusing on pre-fabrication and manufacturing to avoid mega-project construction costs.
• Oklo plans to recycle used nuclear fuel, potentially reducing fuel costs by 80-90% and tapping into a massive energy resource.
• The company has announced four plant projects in Idaho, Ohio, and Alaska, with a focus on the data center market.
• Oklo is working towards submitting a combined license application (COLA) to the NRC, potentially by the end of this year or early next year, with a 24-month review period expected.
• The company is taking a different licensing approach than the rest of the industry because they are an owner-operator model.
• Oklo is partnering with Centrus for fuel supply while scaling up recycling infrastructure.

Sentiment

Score: 8

Explanation: The document conveys a positive outlook on Oklo's technology, business model, and market opportunities. The CEO's enthusiasm and the discussion of potential benefits like fuel cost reduction contribute to the positive sentiment.

Positives

• Oklo's business model aligns with large energy users' preference for procuring power directly.
• Liquid sodium-cooled reactors offer advantages in heat transfer, operating temperatures, and compatibility with common alloys.
• The company's technology allows for the use of existing supply chains, reducing costs and improving scalability.
• Recycling used nuclear fuel offers significant economic and resource utilization benefits.
• Oklo's small reactor size allows for a more manageable capitalization process compared to larger nuclear projects.
• The company's technology has demonstrated inherent and passive safety characteristics.
• There is growing public support for nuclear energy, driven by better access to information and data.
• Federal policy incentives, such as the production tax credits in the IRA, support nuclear energy projects.
• The company has a site use permit from the Department of Energy issued in 2019 for the Idaho plant.
• Oklo was awarded fuel material from Idaho National Laboratory in 2019.

Negatives

• The recycling capacity for nuclear fuel is currently limited, requiring reliance on fresh fuel in the near term.
• The regulatory process can be opaque and lengthy, with a 24-month review period expected for the initial license application.
• The company is still in the process of finalizing the business combination with AltC Acquisition Corp.

Risks

• Regulatory uncertainties and the need for NRC approval pose risks to project timelines.
• The company is pursuing an emerging market with no commercial project operating.
• The potential need for financing to construct plants could be a challenge.
• Competition from other SMR technologies and energy sources exists.
• Changes in applicable laws or regulations could impact the company's operations.
• The outcome of any government and regulatory proceedings, investigations and inquiries could impact the company's operations.

Future Outlook

Oklo anticipates submitting a combined license application to the NRC by late this year or early next year, with a 24-month review period. The company expects efficiency gains for applications submitted in 2026 and beyond.

Management Comments

• Jacob DeWitte: 'It's broadly a very exciting time for nuclear technology.'
• Jacob DeWitte: 'We pursued this in a different way to make it easier by really focusing on selling what they want: power.'
• Jacob DeWitte: 'We're literally working on a technical solution from the reactor side as well as the recycling side... that literally can tap into the known reserves of heavy metals on this planet... and effectively power the entire planet's energy needs for several billion years.'

Industry Context

The announcement comes amid growing interest in small modular reactors (SMRs) as a key technology for the energy transition. The discussion highlights Oklo's unique approach compared to other SMR developers, particularly in its business model and fuel recycling capabilities.

Comparison to Industry Standards

• NuScale is another SMR company that is already listed.
• NuScale accommodates a lot of cool heat reduction with their pool system, but you need water there just because you're transferring heat by the lower temperature, you need more water for that.
• France generates 75% of its power from nuclear energy.

Stakeholder Impact

• Shareholders can expect potential value creation through the business combination and future project development.
• Employees will be involved in the development and deployment of innovative nuclear technology.
• Customers, particularly data centers and industrial users, will benefit from clean, reliable, and affordable energy.
• Suppliers will have opportunities to participate in Oklo's supply chain.
• Creditors may provide financing for Oklo's projects.

Next Steps

• Oklo will finalize the S-4 filing for the business combination with AltC Acquisition Corp.
• The company will submit a combined license application (COLA) to the NRC.
• Oklo will continue to develop and scale up its fuel recycling infrastructure.
• The company will continue to engage with communities and stakeholders regarding its projects.

Key Dates