US Taps Nuclear Startups to Transform Cold War Plutonium into Clean Energy
Washington, D.C., Wednesday, 27 May 2026.
To solve critical fuel shortages, the US government is partnering with startups like Oklo to transform surplus Cold War-era nuclear weapons plutonium into clean energy for commercial reactors.
The Federal Shift from Disposal to Deployment
On May 26, 2026, the U.S. Department of Energy (DOE) officially shortlisted five companies to enter advanced negotiations under the newly minted Surplus Plutonium Utilization Program [1][2]. The selected entities—Oklo Inc. (NYSE: OKLO), Exodys Energy, SHINE Technologies, Standard Nuclear, and Flibe Energy—are tasked with developing methods to convert surplus weapons-grade plutonium into commercial reactor fuel [2][5]. This initiative seeks to address a severe domestic shortage of conventional uranium-based fuel, which Oklo co-founder and CEO Jacob DeWitte recently identified as one of the primary “choke points” hindering the expansion of advanced nuclear power [1][3].
Oklo and Newcleo’s Transatlantic Strategy
Among the selected companies, California-based Oklo has emerged as a particularly prominent player, bolstered by its strategic partnership with European reactor developer newcleo [1][3]. Initiated in October 2025, this transatlantic collaboration aims to develop advanced fuel fabrication infrastructure in the U.S., supported by a potential investment vehicle of up to $2 billion—or approximately €1.7 billion—affiliated with newcleo [3][4]. Oklo, which counts OpenAI founder Sam Altman as a founding investor, plans to utilize its fast-fission technology to consume the repurposed plutonium as a “bridge fuel” while domestic supply chains for high-assay low-enriched uranium (HALEU) continue to scale [3][4].
Proliferation Risks and Political Pushback
The privatization of weapons-grade plutonium has not proceeded without significant political friction. Since September 2025, Democratic lawmakers have actively lobbied the White House to cancel the surplus plutonium plan, citing severe nuclear proliferation risks [2]. In a formal opposition letter, Senate Democrats warned that the initiative involves enough highly fissile material to manufacture 2,000 atomic bombs [2][5]. Furthermore, the program’s oversight has drawn scrutiny due to the background of current U.S. Energy Secretary Chris Wright, who served on Oklo’s board of directors prior to his cabinet appointment [2].