Oklo's Shares Surge on Thursday
In a significant stride for the nuclear energy sector, Oklo, a company specialising in small nuclear reactors, has completed the U.S. Nuclear Regulatory Commission's (NRC) readiness assessment for Phase 1 of its combined license application (COLA) for the first Aurora powerhouse at Idaho National Laboratory. This milestone positions the company well for submitting the COLA later this year, potentially leading to commercial operations in the mid-2020s.
The news has sent Oklo's stock soaring by 4%, reflecting investor optimism about the company's progress. The NRC's assessment indicates that Oklo is on track to file a COLA application, which, if approved, would allow Oklo to build the Aurora powerhouse. The company's CEO, Jacob DeWitte, has stated that the completion of the pre-application readiness assessment is a positive sign that the NRC thinks Oklo has a decent chance of getting its application approved.
However, the profitability timeline of Oklo remains uncertain. Analysts predict that the company is not expected to turn profitable until 2030. The profitability of Oklo in the future will significantly influence the value of its stock, which currently stands at $10 billion. The business model of Oklo is similar to that of an ordinary electric utility, charging for electricity. The company plans to generate revenue from 2027 onwards, with the first Oklo reactor expected to go online in 2027.
Despite these advancements, Oklo faces challenges such as regulatory delays and securing a reliable HALEU fuel supply, which could impact operational timelines and revenue generation. With Kiewit Nuclear Solutions Co selected to support the design, procurement, and construction of the Aurora-INL, pre-construction is expected to begin later in 2025, with commercial operations targeted for late 2027 to early 2028.
In its long-term plan, Oklo aims to build reactors in-house, place them on customer sites, operate the reactors, and supply power. The "Aurora powerhouse" is intended to be built at Idaho National Laboratory. The potential timeline for Oklo's first small modular reactor to become operational and generate revenue is tied to several factors, including regulatory approvals and construction timelines.
In conclusion, while regulatory progress and partnerships suggest an optimistic timeline, potential bottlenecks and regulatory hurdles could affect the actual operational start and revenue generation timeline. As Oklo moves closer to building its first nuclear powerhouse, investors will be closely watching the company's progress and the impact it could have on the nuclear energy sector.
The CEO, Jacob DeWitte, expressed optimism about Oklo's potential approval of the COLA application, stating that the completion of the pre-application readiness assessment is a positive sign. The company's stock surge by 4% indicates investor optimism about the progress in finance, potentially leading to commercial operations in the mid-2020s. However, the profitability timeline remains uncertain, with analysts predicting that the company might not turn profitable until 2030. This uncertain profitability significantly influences the value of Oklo's stock, currently standing at $10 billion. Investing in technology is crucial for Oklo's long-term plan, aiming to build reactors in-house, supply power, and eventually expand to customer sites.
