The U.S. Department of Energy (DOE) has selected Oklo Inc. (OKLO) and four other nuclear companies for advanced negotiations under the Surplus Plutonium Utilization Program. The program aims to convert surplus plutonium into fuel for next-generation reactors, creating a bridge fuel option that can accelerate deployment while new domestic enrichment and fabrication capacity comes online. This development highlights a new fuel pathway for advanced reactor developers and the important role of established operators at government-owned plutonium facilities.
Key Takeaways
- The DOE selected Oklo and four other companies to work on converting surplus plutonium into usable fuel for next-generation reactors.
- Companies that operate government-owned plutonium processing and handling facilities are well positioned to support these utilization programs.
- Many nuclear strategies are tilted to uranium mining and have only modest weightings to companies seeing opportunities around plutonium.
Plutonium is a radioactive element historically produced for defense programs and stored by the government as a legacy of the Cold War. Rather than treating these surplus stockpiles as a long-term storage obligation, the DOE is now pursuing a ‘disposition-through-use’ approach. This converts the surplus material into fuel for next-generation reactors, effectively turning a long-standing liability into a practical, near-term fuel source.
The VettaFi Nuclear Renaissance Index (NUKZX) includes reactor developers, facility operators, and supply chain companies positioned to benefit from these plutonium utilization developments. NUKZX serves as the underlying index for the Range Nuclear Renaissance Index ETF (NUKZ).
Oklo & 4 Peers Selected for Plutonium-to-Fuel Pathways
The Surplus Plutonium Utilization Program will provide up to 20 metric tons of surplus plutonium from past defense programs. Instead of treating the material as a long-term storage obligation, the DOE is making it available for conversion into reactor fuel, under strict security, safeguards, and accountability requirements. This disposition-through-use approach provides a practical near-term fuel bridge for advanced reactor designs that can utilize plutonium-based fuels.
Oklo was selected alongside Exodys Energy, SHINE Technologies, Standard Nuclear, and Flibe Energy. Oklo will leverage its partnership with European advanced reactor developer Newcleo. Under the partnership, Oklo will lead utilization efforts while Newcleo contributes fuel expertise and potential project capital, subject to final agreements.
Fluor & Amentum Positioned Through Existing Facility Operations
Successful execution of these plutonium-to-fuel efforts will rely on companies already operating key government-owned facilities that process and handle plutonium. At the Savannah River Site in South Carolina, Fluor (FLR) leads Savannah River Nuclear Solutions. This is the management and operations contractor responsible for safe oversight of nuclear materials and defense programs, including plutonium-related work and construction of the Savannah River Plutonium Processing Facility.
Amentum (AMTM) participates through the Savannah River Mission Completion consortium, contributing to nuclear materials management, remediation, and mission execution at the site. These established operational roles give Fluor and Amentum direct experience with the secure handling infrastructure that can support expanded plutonium utilization programs.
NUKZX vs. Uranium-Heavy Approaches
The program creates opportunities across engineering, site operations, component supply, and fuel-related services, rather than concentrating benefits solely in primary uranium production. Many nuclear indexes maintain heavy allocations to uranium mining companies that stand to benefit less directly if surplus plutonium becomes a scalable fuel source.
In contrast, NUKZX includes a broader mix of reactor developers such as Oklo, engineering and construction firms like Fluor, service providers including Amentum, and component manufacturers such as BWX Technologies (BWXT) and Curtiss-Wright (CW). This diversified composition positions NUKZX to capture value from both fuel pathways and the supporting infrastructure required to execute them.
To learn more about the merits of a diversified approach to nuclear and global tailwinds for nuclear power, watch the replay of our recent webcast, Investing as Nuclear Moves from Chalkboards to Construction Sites.
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