Oklo and UK Nuclear Firm to Invest $2 Billion in Fuel Plants

(Bloomberg) -- Newcleo Ltd., a struggling UK nuclear startup, has agreed to invest as much as $2 billion to develop uranium fuel facilities in the US with American reactor developer Oklo Inc., a move aimed at expanding the supply chain for the fledgling small-reactor sector.

The UK company and Oklo plan to develop multiple projects to promote domestic fuel fabrication and manufacturing infrastructure, Newcleo said in a statement Friday. Newcleo has been paring back its operations in the UK and cutting staff, and the statement didn’t say where it would get the funding for this US effort. Blykalla AB, a Swedish nuclear company that’s collaborating with Oklo, is also considering participating in the project. 

Oklo shares were down 1.3% at 9:45 a.m. in New York on Friday. 

Developers of next-generation reactors boast support from the Trump administration, but so far no small reactors have been built in the US — and only three traditional reactors have been built this century. A US Department of Energy program aims to have at least three reactors “achieve criticality” by mid-2026, which is raising questions about the availability of fuel.          

“Energy independence relies on advanced fuels,” Newcleo Chief Executive Officer Stefano Buono said in the statement. “The agreement proves that the US and Europe can lead in this sector.” 

The deal follows Newcleo’s decision in July to wind down its UK business to focus on the US and Europe. Still, it’s unclear exactly what projects will be pursued under this agreement. 

(Story updates with shares in third paragraph.)

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