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Can Oklo's Fuel Recycling Strategy Change Nuclear Power?

By Nilanjan Choudhury | August 05, 2025, 8:18 AM

Oklo Inc. OKLO is rethinking how nuclear energy is produced, and at the center of its strategy is fuel recycling. Unlike conventional reactors that only use about 5% of the energy content from nuclear fuel, Oklo’s special ‘fast reactors’ are built to tap into the other 95% that's normally thrown away. That means the company can take what’s typically considered dangerous nuclear waste and transform it into a valuable source of clean, reliable energy. It’s a clever solution that solves a big waste problem while powering homes and businesses.

Oklo's approach gives it a major advantage. By building its own fuel supply chain and developing its own recycling technology, the company hopes to keep long-term costs down and stay ahead of rivals. The U.S. Department of Energy appears confident in this direction, selecting Oklo for four recycling-related projects totaling over $15 million. These initiatives aim to advance waste-to-energy technologies that could underpin the company’s long-term fuel strategy and drive meaningful innovation in the sector.

The implications are striking. According to Oklo, all the used nuclear fuel already stored in the United States contains enough energy to power the country for over 150 years. By tapping into this dormant supply, Oklo is not only starting a new kind of power plant but also completely redefining the future of nuclear energy.

Breaking Down the Fuel Strategies of Nuclear Rivals

Entergy Corporation ETR is advancing its exploration of next-generation nuclear technologies to further reduce emissions. Entergy has secured a permit in Mississippi for a potential new reactor site and is trying to engage with industrial clients and technology firms, particularly those in the AI and data sectors, on potential partnerships for deploying small modular reactors (SMRs). Entergy’s collaborations are aimed at jointly addressing the financial and regulatory challenges of next-gen nuclear projects.

Dominion Energy D is also actively investing in the future of nuclear energy, particularly through the exploration of Small Modular Reactor (SMR) technology. In October 2024, Dominion signed a memorandum of understanding (MOU) with Amazon to assess the feasibility of deploying SMRs at its North Anna facility in Virginia. As AI-driven data centers rapidly increase electricity consumption, Dominion’s nuclear power assets offer a scalable, around-the-clock, zero-carbon solution to support this surge in demand.

The Zacks Rundown on OKLO

Shares of Oklo have surged 260% so far this year.

Zacks Investment Research
Image Source: Zacks Investment Research

From a valuation perspective — in terms of the trailing 12-month price-to-book (P/B) ratio — Oklo is trading at a significant premium compared to the industry average. 

Zacks Investment Research
Image Source: Zacks Investment Research

See how the Zacks Consensus Estimate for Oklo’s earnings has been revised over the past 60 days.

Zacks Investment Research
Image Source: Zacks Investment Research

The stock currently carries a Zacks Rank #4 (Sell).

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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Entergy Corporation (ETR): Free Stock Analysis Report
 
Dominion Energy Inc. (D): Free Stock Analysis Report
 
Oklo Inc. (OKLO): Free Stock Analysis Report

This article originally published on Zacks Investment Research (zacks.com).

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