The United States Air Force is preparing to deploy a next-generation nuclear reactor at a remote base in Alaska, selecting startup Oklo Inc. for the job — a decision that could signal a new era for small-scale nuclear energy in military operations.
In a notice of intent published Tuesday, the Defense Logistics Agency (DLA) announced its plan to award a long-term power purchase agreement to Oklo, whose Aurora reactor would supply both electricity and heat to Eielson Air Force Base, located just outside Fairbanks, Alaska.
The decision marks one of the clearest signs to date that the Department of Defense is moving forward with its Microreactor Pilot Program, designed to test the feasibility of portable, resilient nuclear power sources for national security applications.
If finalized, the agreement would allow Oklo to build, own, and operate the reactor while selling power back to the Air Force.
“We’re pleased to be selected for a project that aligns with our core mission: reliable clean power where it’s needed most,” Oklo CEO Jacob DeWitte said in a statement.
The Aurora system, which uses a liquid-metal fast reactor design, is capable of operating for up to a decade without refueling, according to the company.
Its compact footprint and autonomous operation make it particularly suited for hard-to-reach environments like Alaska, where traditional fuel supply chains are vulnerable to disruption.
The Department of Defense, which is one of the world’s largest institutional energy consumers, has identified resilient, carbon-free energy sources as a strategic priority in recent years.
Eielson’s microreactor is expected to serve as a proof-of-concept for future deployments at other bases.
Stock market reacts swiftly
Shares of Oklo Inc. (NYSE: OKLO) surged following the announcement. The company’s stock rose more than 26 percent in intraday trading Tuesday, closing at $68.75, a record high.
Volume surged as investors weighed the potential revenue implications and the credibility lent by a federal partnership.
Oklo’s year-to-date gains have now exceeded 200 percent, and the company’s valuation has grown rapidly since its public debut via a SPAC merger earlier this year.
Analysts noted that the project, though still subject to regulatory approval and final contract terms, could mark a turning point for Oklo after a rocky licensing attempt in 2022.
Regulatory and operational hurdles remain
While the DLA’s intent to award the contract is a milestone, Oklo still faces substantial hurdles.
The reactor will require a combined license from the Nuclear Regulatory Commission, which previously rejected an earlier application from the company, citing lack of sufficient technical information.
Oklo has stated it intends to resubmit its application later this year.
If approved, construction could begin in the next two years, with a potential operational date of 2027, according to people familiar with the matter.
The company would also need to secure infrastructure access, grid integration, and environmental compliance under the National Environmental Policy Act.
The reactor is expected to generate up to 75 megawatts of thermal and electric energy combined — a fraction of the output of traditional nuclear plants but sufficient to power base operations in the region.
A broader push for small nuclear
The Air Force project is part of a broader wave of interest in small modular and microreactors, which supporters say can help reduce reliance on fossil fuels and improve energy resilience.
Several private firms — including NuScale, BWX Technologies, and X-energy — are competing to bring commercial small reactors to market, though none have yet begun full-scale deployment.
Critics, however, have warned of unresolved questions around waste management, security risks, and economic viability.
Still, for Oklo, the Air Force’s announcement represents a critical endorsement. The company has long positioned itself as a disruptor in a field dominated by legacy operators and has attracted support from investors including OpenAI’s Sam Altman.
If the Aurora reactor at Eielson proves successful, it could serve as a model for off-grid power in military, industrial, and even remote civilian settings — a potential breakthrough for advanced nuclear in the United States.
Also Read
U.S. Inflation Slows in May as Energy Prices Fall, but Food and Rent Costs Stay High
Google Expands Voluntary Buyouts Amid Strategic Shift Toward AI and Efficiency
