US picks potential partners for using Cold War-era plutonium as fuel

The U.S. said on Tuesday it had chosen five companies, including Oklo, to enter advanced talks over potentially using its Cold War-era plutonium as a nuclear reactor fuel.

Reuters reported last year that the Trump administration plans to make about 20 metric tons of plutonium from dismantled nuclear warheads available to U.S. power companies.

President Donald Trump last May ordered the halt of much of a program to dilute and dispose of surplus plutonium, and instead provide it as a fuel for advanced nuclear technologies.

The Energy Department holds surplus U.S. plutonium, which has a half-life of 24,000 years and must be handled with protective gear, at heavily guarded weapons facilities in states including South Carolina, Texas and New Mexico. 

Oklo, whose stock price was up more than 5.5% to $69.51 per share, said it plans to develop the fuel with newcleo, a European company that aims to build high-tech nuclear reactors.

The other companies are privately held Exodys Energy, SHINE Technologies, Standard Nuclear and Flibe Energy, the U.S. Energy Department said in a statement.

Oklo said in a statement that newcleo would bring fuel experience and potential project capital, subject to agreements, approvals and U.S. security and safeguards requirements.

"This program creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner," said Oklo co-founder and CEO Jacob DeWitte. "Material that has been set aside for disposal can instead be converted into fuel to produce electricity."

Stefano Buono, newcleo CEO and founder, said using the plutonium as fuel would reduce U.S. nuclear liabilities.

Democratic lawmakers have urged Trump to cancel his surplus plutonium plan, saying it represents a proliferation risk and involves enough plutonium to make 2,000 atomic bombs.

U.S. Energy Secretary Chris Wright was on Oklo's board of directors before joining Trump's cabinet. 

The department said the Surplus Plutonium Utilization Program should help companies secure private funding. It did not immediately respond to a request for comment about how the program would ensure the materials are handled safely.