OKLO: Small Modular Reactor Innovator – Growth and Stock Outlook

This site is a great place for me (@mifsee(2) has been working on company and stock analysis while learning privately.

This is only a record of my personal analysis and the contents may contain errors or information that differs from the actual situation. Please understand in advance when viewing this site.

Introduction.

As demand for AI grows rapidly, the problem of power supply is becoming more serious.

Data center operations require enormous amounts of electricity, and it is difficult to meet this demand with current clean energy alone.

In particular, it has been pointed out that there is an urgent need for a stable, large-volume supply of electricity, and that modern renewable energy sources are insufficient to compensate for this need.

Against this background,Small modular reactor (SMR)is expected to be a new solution.
OpenAI CEO Sam Altman's investment in OKLO (OKLO) is a company that is focused on clean and sustainable energy supply.

This article delves into the details of Oklo's business, its unique strengths, and its future prospects.

RELATED:Next-Gen Clean Energy: Small Modular Reactor (SMR) Stocks (US & Japan)

Next-Gen Clean Energy: Small Modular Reactor (SMR) Stocks (US & Japan)

As the rapid development of AI highlights the challenges of power supply, small modular reactors (SMRs) are expected to be the next-generation solution SMRs have the potential to provide the clean and stable power needed for the AI industry, and we will delve into related stocks.

mifsee.com

What is OKLO (OKLO) and what kind of business does it do?

Oklo Inc. is a U.S.-based energy company,Developed small modular reactor (SMR)The company is doing so.

SMR is a technology that aims to provide energy in a smaller, safer, and more cost-effective manner than conventional large reactors.

Okuro sect (of Shin Buddhism)Under the trademark "Aurora," the company offers innovative micro fast reactors that are designed to achieve sustainable clean energy.

What are the characteristics of Okuro?The point that nuclear fuel recycling technology is utilized to generate new fuel from spent nuclear fuel and provide a nuclear reactor that can operate for a long period of time without fuel replacement.The first is.
It is particularly suited to supply energy to remote areas or areas with low demand for electricity.

Oklo also works with the U.S. Department of Energy (DOE) and plays an important role in the clean energy market, including fuel production at the Idaho National Laboratory.

Furthermore, Oklo plans to go public through the SPAC merger in 2024, raising expectations for its future in the clean energy market.
In the global trend toward energy decarbonization, Oklo continues to be a market leader with its unique technology.

Oklo's corporate information is below.

• Company Name:: Oklo Inc.
• Year Established: 2013
• Head Office LocationCalifornia, U.S.A.
• Name of Representative:Jacob DeWitte : Jacob DeWitte
• Official Site: https://www.oklo.com/
• Main Businesses: Development of small modular reactors (SMRs) and provision of nuclear fuel recycling technology

What is the background of the establishment of OKLO?

Oklo Inc. was founded in 2013 by Jacob DeWitte and Caroline Cochran. The vision behind the company's founding was to provide more sustainable and cleaner energy solutions through innovation in nuclear energy technology.

The founders of Oklo saw the potential in developing a safe and efficient small modular reactor (SMR) as an alternative to large conventional nuclear power plants.
They believed that while advances in nuclear technology were being made, there was a lack of means to properly apply it to society and supply energy in an environmentally friendly manner.

In particular, there was a need for innovative solutions to address difficult energy supply areas and small-scale electricity demand.

Oklo is committed to meeting that need,Focusing on the development of nuclear fuel recycling technology and micro reactors utilizing fast reactor technology, the company is attracting attention as a company that will usher in a new era of nuclear energy.

Since its establishment, the company has also collaborated with the U.S. Department of Energy (DOE), the Idaho National Laboratory (INL), and other organizations to promote technology development.

What are the features of small modular reactor (SMR) technology?

Small modular reactor (SMR) technology is an innovative technology that allows for a smaller, more flexible and safer energy supply than conventional large nuclear power plants.
Below are the main features of SMR technology.

Improved safety

SMR uses a "passive safety design" that utilizes the physical laws of nature. This design allows the SMR to autonomously return to a safe state in the event of loss of external power or cooling water. This greatly reduces the risk of large-scale radiation leakage, as in the case of the Fukushima Daiichi nuclear power plant accident.

Flexibility through modular design

SMRs feature a modularized design, allowing multiple small reactor units to be combined as needed. This allows the scale of the facility to be scaled up incrementally in response to power demand, eliminating the need for large initial investments.

Flexibility of installation location

Compared to conventional nuclear power plants, SMRs can be installed on a much smaller site area and can be used in remote areas or in areas without adequate power infrastructure. This flexibility makes SMRs a suitable energy solution for remote areas and islands where energy supply is a challenge.

Low-cost operation

SMRs are small in size and cost significantly less to construct and operate than conventional nuclear power plants. The modular design allows for mass production in factories, which is expected to reduce costs.
Some types do not require fuel changes during the operational period, which also reduces maintenance costs over the long term.

Reduction of environmental impact

SMR has very low carbon dioxide (CO2) emissions and contributes to the supply of sustainable clean energy. In addition, Okuro's technology can reuse spent nuclear fuel and significantly reduce radioactive waste.

Due to these features, SMR is considered a technology that will play an important role in the energy revolution and contribute significantly to the spread of clean energy in the future.

RELATED:Next-Gen Clean Energy: Small Modular Reactor (SMR) Stocks (US & Japan)

Why is SMR rapidly gaining attention?

In addition to the technical and economic advantages, the reason why small modular reactors (SMRs) are rapidly gaining attention is the growing demand for decarbonization in the energy industry as a whole.

Conversion to clean energy

With climate change countermeasures gaining importance around the world, nuclear power generation, which does not emit greenhouse gases, is once again attracting attention.
SMRs have nearly zero carbon emissions and can serve as a complement to renewable energy sources such as wind and solar.
It is also expected to be a base-load power source that compensates for the volatility of renewable energy sources because of its ability to provide a stable energy supply.

Cost Reduction and Efficiency 

SMRs are less expensive to build and operate than conventional large reactors, and their modular design allows them to be mass-produced in factories.This will facilitate the building of energy infrastructure and expansion into emerging markets.
The design also reinforces the economic benefits of the system, which is designed to operate over a long period of time with little maintenance.

safety 

A key feature of SMRs is that they have safety functions that require no external intervention due to their passive safety design.
As safety concerns about nuclear power have increased since the Fukushima Daiichi nuclear power plant accident, the advanced safety features of SMRs have increased their reliability.

Background of the new focus: A succession of big tech companies entering the market.

Recently, well-known big tech companies have announced investments in SMR technology to meet AI's huge power demands and reduce greenhouse gas emissions.

SMR (small modular reactor) technology is attracting the attention of many companies because it provides a clean and stable energy supply.

The following are examples of companies that have announced their participation in SMR technology.

• Microsoft [MSFT]:.Microsoft is moving forward with SMR technology through a partnership with TerraPower. TerraPower is a nuclear company founded by Bill Gates that focuses primarily on the development of Sodium-Cooled Fast Reactors and SMR technology. Microsoft is pursuing a strategy to leverage this technology to meet the power needs of its data centers and meet the company's carbon neutrality goals.
• Google 【GOOG]:: [1].Google is a startup working on nuclear energy technology in October 2024,Kairos Power(Kairos Power). The two companies plan to deploy a fleet of SMRs that will generate a total of 500 megawatts of electricity by 2035. Kairos Power has developed a proprietary technology called the Fluoride Salt-Cooled High-Temperature Reactor (KP-FHR), which is said to be safer and more efficient than conventional light water reactors.
• Amazon [AMZN]:.In October 2024, Amazon announced plans to invest more than $500 million in the development of SMR technology. Amazon intends to deploy SMR technology to provide clean and stable power for the enormous energy consumption of its data centers. By doing so, the company seeks to achieve a sustainable energy supply while reducing its impact on the environment.

What is Oklo's "Aurora" project?

Oklo's "Aurora" project refers to the innovative Aurora Microreactor, a micro-module reactor being developed by the company.

The project aims to create a new type of reactor, different from conventional large reactors, that can supply power in a smaller and more efficient manner.

Project Summary

The "Aurora" project is based on the Small Modular Reactor (SMR) technology developed by Oklo, which is specifically designed for remote areas and regions with small power needs.
The reactor design is very compact, with a small electrical output of approximately 1.5 megawatts, but features the ability to operate without fuel changes for extended periods of time (over 20 years), greatly reducing the need for refueling and shutdowns, thereby reducing operating costs.

Technical Features

The "Aurora" micro fast reactor is,Designed to minimize environmental impact by employing nuclear fuel recycling technology to reuse spent nuclear fuelThe first two are the following.

Further,It uses highly enriched low-uranium fuel (HALEU), which is more fuel efficient than conventional reactors.
By this fuel technology,It enables long-term operation without fuel replacement, ensuring the stability of energy supply.

Progress and Outlook

Oklo to promote this project,A partnership with the Idaho National Laboratory (INL) is underway for initial deployment in the United States.
The process is also underway for a construction and operation permit from the U.S. Nuclear Regulatory Commission (NRC) in 2022, but delays related to some applications have been reported.

The "Aurora" project is the core project of Oklo, which aims to provide sustainable clean energy while complementing renewable energy sources, and holds great promise for energy supply, especially in remote areas and those without infrastructure.

What is the relationship between Oklo and Open AI CEO Sam Altman?

The relationship between Oklo and Sam Altman (Sam Altman) stems from Altman's investment in Oklo.

Sam Altman is CEO of Open AI and a widely known investor in technology, but he also has a strong interest in clean energy and innovative nuclear technology.
He made an early investment in Oklo and has supported the company's development of small modular reactor (SMR) technology.

Altman believes that nuclear energy is the future of clean energy and is particularly excited about the SMR technology being developed by companies like Oklo.

This technology is also consistent with his technological vision, as it is supposed to enable a more sustainable and environmentally friendly energy supply.
Altman's support is a key element in advancing Oklo's technological developmentThe first two are the following.

Thus, the relationship between Oklo and Sam Altman is deeply intertwined through their support as investors, while at the same time sharing a common goal of advancing clean energy technologies.

What is the trading market?

Oklo Inc. is listed on the New York Stock Exchange (NYSE) under the ticker symbol OKLO.

The listing is part of the merger through a special purpose acquisition company (SPAC) announced in 2023. With this listing, Oklo is advancing the development and commercialization of small modular reactors (SMRs) through capital market financing.

What are the sectors, industries, and themes to which Oklo (Oklo) belongs?

sector

Energy: Oklo Inc. belongs to the energy sector. Specifically, the company aims to supply clean energy through the use of small modular reactors (SMRs) and is developing technologies related to renewable and nuclear energy.
Oklo's technology is intended to contribute to sustainable energy supply, particularly in the areas of decarbonization and climate change.

type of industry

Nuclear Power Generation: Oklo is a developer and commercializer of nuclear power technology, with a particular focus on small modular reactor (SMR) technology.
This technology is expected to provide a safe and cost-effective power supply and is expected to be a new energy source to replace conventional large nuclear reactors.

Themes belonging to

Clean Energy & Decarbonization: Oklo contributes to the reduction of greenhouse gas emissions through the development of sustainable clean energy technologies.
In particular, energy supply using small modular reactors contributes significantly to the reduction of carbon dioxide emissions. In addition, SMR technology is often used in combination with renewable energy and is attracting attention as a new solution in the energy mix.

Other,Themes include Energy Transition and Innovative Nuclear Technologies.
Oklo is one of the companies innovating in this field, serving as a stable source of electricity that complements renewable energy.

Dividends?

Oklo currently does not pay a dividend.

Who are OKLO's competitors?

Oklo Inc.'s main competitors include companies that are similarly trying to develop and commercialize small modular reactor (SMR) technology, as well as companies working on innovative nuclear technologies.
The following are examples of Oklo's competitors.

• NuScale Power [SMR]:.NuScale Power is a pioneer in the development of SMR technology and was the first company in the U.S. to obtain design approval for SMRs NuScale's technology aims to provide flexible and secure power supply using small, modular reactors. Like Oklo, it is a direct competitor because of its complementary role in renewable energy and its ability to supply power to remote areas.
• TerraPower [undisclosed]:.TerraPower is a nuclear company founded by Bill Gates that focuses specifically on the development of sodium-cooled fast reactor (SFR) technology and modular reactors. The company's technology aims to provide a sustainable and safe power supply and competes with Oklo in the area of SMRs. TerraPower is expanding its business through strong alliances with the U.S. government and other companies.
• Kairos Power [undisclosed]:.Kairos Power, a company developing innovative reactor technology using high-temperature fluoride salt-cooled reactors (KP-FHR), is partnering with Google on a plan to supply 500 megawatts of electricity by 2035, competing with Oklo's small modular reactor (SMR) technology. The company aims to provide an efficient and secure energy supply, and is particularly interested in this technology for remote areas and small-scale demand.
• Westinghouse Electric Company [undisclosed]:: Westinghouse Electric CompanyWestinghouse has long been a leader in the field of nuclear power technology and has recently focused on the development of SMR technology. Like Oklo, Westinghouse is committed to safe and efficient power supply and is increasing its competitiveness in the energy market.
• GE Hitachi Nuclear Energy (GE Hitachi Nuclear Energy) [Not disclosed]:.GE Hitachi is a leading company working on SMR technology and other advanced nuclear technologies and is positioned as a competitor to Oklo GE Hitachi is pursuing the commercialization of nuclear technology with the goal of providing a low-cost, sustainable energy supply.

All of these companies have developed innovative nuclear technologies and compete in the clean energy market. Oklo will compete with these competitors in technology development and market deployment.

What is the size and growth potential of the industry to which OKLO (OKLO) belongs?

Oklo Inc. belongs toThe nuclear power industry, especially in the area of small modular reactors (SMRs), is an innovative market with significant growth potential.
Below is an indication of the industry's size and growth potential.

Size of the SMR market

The SMR market is currently still in its infancy, though,It is expected to be fully commercialized in the late 2020s and 2030s.
Global SMR market size is projected to reach approximately more than $10 billion by 2030The company has been

This market is growing rapidly due to the growing demand for clean energy and international pressure to decarbonize.
SMR technology is attracting attention as a new option for energy supply because of its lower construction cost and higher safety compared to conventional large nuclear power plants.

growth driver

Growth in the SMR market is primarily driven by the following factors

• Accelerating decarbonization and energy transition: Many countries have greenhouse gas emission reduction targets, and nuclear energy is considered a core technology. SMRs, which play a complementary role to renewable energy, are especially recognized for their value as a stable baseload power source.
• Government support and policy promotion: Many countries, including the U.S., Canada, and the U.K., have provided funding and deregulation for SMR development to support the commercialization of the technology. In the U.S., the Department of Energy (DOE) provides strong support for SMR development, and many companies, including Okuro, have benefited from this support.
• Cost efficiency and flexibility: SMRs use a modular design, which significantly reduces the cost of construction and operation compared to conventional reactors. In addition, they can be adapted to regions with small power demands or remote areas, thus expanding their market.

Growth potential of SMR technology

According to the International Energy Agency (IEA) and the World Nuclear Association (WNA),By 2050, nuclear power will account for a significant share of the global energy mixIn particular, SMR technology is expected to play a central role in this process.
The commercialization of SMR technology is expected to increase the stability of energy supply, reduce energy costs, and contribute to the Sustainable Development Goals (SDGs).

The SMR market, of which Oklo is a part, has the potential for rapid growth over the next few decades, supported by the global trend toward decarbonization and energy security. The market size will reach billions of dollars and will be positioned as an innovative technology in the energy sector.

What are the differentiating factors and advantages of OKLO (OKLO) over its competitors?

Oklo Inc.'s (Oklo) differentiating factors and advantages over its competitors are primarily technological innovation, environmental friendliness, and business model flexibility.
Each of these points is listed below.

1. innovative technical approaches

• Nuclear Fuel Recycling TechnologyOklo is focusing on technologies to recycle spent nuclear fuel. In particular, the company's "Aurora" project is developing technology to recycle spent fuel from closed experimental reactors and provide energy again.
  This is a major differentiator because it allows Oklo to reuse radioactive waste, whereas most of its competitors use new fuel.
• Small modular reactor (SMR) size and long-term operationOklo's "Aurora" SMR is a small 1.5-megawatt reactor that is unique in that it can operate for more than 20 years.
  It can provide a stable power supply even in remote areas or areas with inadequate infrastructure, and has the advantage of flexible operation compared to competing large-scale nuclear reactor technologies.

Contribution to the Environment

• Decarbonization and Sustainability:.Okuro's technology can reduce radioactive waste through nuclear fuel recycling and also provide clean energy with zero CO2 emissions.
  While many competitors have developed SMR technology, Oklo has an advantage as a sustainable clean energy technology, especially in its focus on reducing environmental impact.

Small scale and rapid deployment

• Speed of construction and deployment :Oklo's SMR technology can be deployed quickly due to its compact size and modular design. Compared to conventional large reactors, construction costs are lower and installation can be done in a shorter period of time, allowing for a rapid response to new energy demands.
  It also offers an advantage over the competition in that it requires little initial investment and allows for gradual expansion.

Regulatory developments and support

• Strong partnerships with government agencies:.Oklo has strong alliances with the U.S. Department of Energy (DOE) and the Idaho National Laboratory (INL), among others, and has the potential to clear regulatory hurdles quickly and achieve commercialization ahead of other competitors.

Oklo's competitive advantage is,Adoption of nuclear fuel recycling technologyandLong-term fuel-change-free operation, ,Technology focused on reducing environmental impactandSmall and rapidly deployable business modelin the
In addition, strong partnerships with U.S. government agencies are expected to help the company overcome regulations quickly, which further strengthens its advantage over the competition.

Performance of OKLO (OKLO)

Oklo's financial year ends on December 31.
The schedule for the announcement of quarterly financial results is as follows

• First Quarter Results: Around early March
• Second Quarter Financial Results: Around early June
• Third Quarter Results: Around early September
• Fourth Quarter and Full Year Results: Around the end of December

Oklo Inc. is a growing company that has recently gone public and is primarily in the technology development stage, so it is not yet at the profitable stage at this time.

Since Oklo is investing heavily in the development and commercialization of its small modular reactor (SMR) technology, the company's financial performance is more in the investment phase than in the revenue phase due to significant initial capital expenditures and R&D costs.

OKLO Stock Price

View the current real-time stock price chart (TradingView) for Oklo.

The chart shows the Relative Strength Index (RSI). Reference as an indicator of market overheating.

*An overbought indicator when the RSI exceeds 70% to 80%, and conversely, an oversold indicator when the RSI falls below 20% to 30%.

What is the future life and outlook for OKLO (OKLO)?

What is the future and outlook for Oklo Inc,The success of the company's Small Modular Reactor (SMR) technology and the market environment are highly dependent on it.
Below are details on the future and prospects for Oklo.

Possibility of technological innovation

The Aurora project, which is being developed by Oklo, reuses spent nuclear fuel, and its SMR technology, which can operate for more than 20 years without a fuel change, is a major differentiating factor and is highly anticipated as a source of clean energy.
Once commercialized, this technology is likely to grow as a new option for stable and sustainable power supply, especially in remote areas and in regions with limited power demand.

Market growth potential

The overall SMR market is growing rapidly.
Global pressure to decarbonize and policy support from countries seeking to diversify their energy supply will expand the market for SMR over the coming decades.

In particular, the increasing demand for clean energy in the energy mix will drive growth in Oklo.

Government Support and Regulatory Developments

In many countries, including the U.S., strong government support is in place to facilitate the commercialization of SMR technology, and Okuro is accelerating progress in technology development. On the regulatory side, the U.S. Nuclear Regulatory Commission (NRC) permitting process is underway, and future licensing will be an important step in commercialization.

Competitive Comparison and Advantages

Oklo's technology features the reuse of spent nuclear fuel and small-scale operation, which gives it an advantage over its competitors. In addition, its significantly lower installation costs and rapid deployment compared to conventional nuclear power plants also make it competitive in the market.
It has the potential to gain a competitive advantage, especially in supplying electricity to emerging markets and remote areas.

Risks and Challenges

However, regulatory uncertainties and technical hurdles remain.
Nuclear technology requires a high degree of regulation and may take a long time to reach commercialization. In addition, competitors are developing SMR technology as well, and there may be differences in the speed of technological innovation and market launch.

Oklo has a very promising future, but its success or failure depends on successful technological development, regulatory approval, and market acceptance.
Currently in its growth phase, Oklo is expected to benefit from increased demand for clean energy and government support, and is likely to establish itself as an innovative energy supply technology in the long term.

Future Outlook

If Oklo's commercialization project is successful, the company is expected to achieve significant growth as a leader in the SMR market in the 2030s.
The company's presence as a technology that contributes to the decarbonization of the energy market is expected to increase further.

Which brokerage firms can I buy shares of OKLO (OKLO)?

The following is a list of major brokerage firms that offer OKLO shares. At these brokerages, you can choose to invest as a CFD (Contract for Difference) in addition to direct stock trading as a foreign stock.

I myself mainly use SBI Securities, but some stocks they handle may not be available for purchase. In such cases, I sometimes use CFDs at Saxo Bank Securities or IG Securities.

summary

We have delved into the details of Oklo's business, proprietary technologies, and competitive advantages.

Although Oklo is still in the startup phase and is currently in the investment phase, its innovative technology and the attractiveness of its projects make it a company with great potential for future growth.

While it may be early days for equity investments in general, the small modular reactor (SMR) sector is likely to attract more and more attention in the future as more and more big tech companies enter the market.

Although there is risk involved, we would like to closely watch the development of Okuro and determine the right time to invest in order not to miss out on developments in this field.

RELATED:Next-Gen Clean Energy: Small Modular Reactor (SMR) Stocks (US & Japan)

Next-Gen Clean Energy: Small Modular Reactor (SMR) Stocks (US & Japan)

As the rapid development of AI highlights the challenges of power supply, small modular reactors (SMRs) are expected to be the next-generation solution SMRs have the potential to provide the clean and stable power needed for the AI industry, and we will delve into related stocks.

mifsee.com