US-based Oklo has signed a letter of intent (LOI) to acquire Atomic Alchemy, a US-based company specialising in the production of radioisotopes. Oklo’s planned fast reactor and fuel recycling technologies will produce valuable coproducts, such as radioisotopes, through their respective processes.
Oklo proposes to acquire Atomic Alchemy for $25m in an all-stock transaction (subject to customer adjustments). All Oklo shares issued to existing shareholders of Atomic Alchemy in connection with the transaction are expected to be subject to multi-year lock-ups. Upon closing, the proposed transaction is expected to have minimal immediate impact on Oklo’s operating cost structure, and the proposed transaction is not expected to impact Oklo’s previously announced 2024 outlook.
The proposed acquisition builds upon a strategic partnership announced between Oklo and Atomic Alchemy earlier this year. This looked to the opportunity to combine Oklo’s planned power generation and fuel recycling capabilities with Atomic Alchemy’s radioisotope production expertise to accelerate fuel production for Oklo’s powerhouses, and to create new revenue streams from radioisotopes.
According to the British Institute of Radiology, as the need for radioisotopes continues to rise, supply has struggled to keep pace due to ageing reactor infrastructure and a fragmented global supply chain, which at present is dominated by Russia. Oklo says it aims to address this gap through reliable, US-based radioisotope production facilities that leverage its core clean energy and fuel recycling technologies.
“The proposed acquisition is expected to enable Oklo to significantly broaden its impact, as our fast reactor and fuel recycling technologies allow us to produce radioisotopes as a coproduct,” said Jacob DeWitte, co-founder and CEO of Oklo. “By incorporating radioisotope production into our fuel recycling process, Oklo is establishing a complementary revenue stream and contributing to a more resilient radioisotope supply chain.”
Oklo is developing the Aurora microreactor, which uses heat pipes to transport heat from the reactor core to a supercritical carbon dioxide power conversion system to generate electricity. It will use high-assay low-enriched uranium (HALEU) fuel. Oklo says the reactor builds on the Experimental Breeder Reactor-II (EBR-II) and space reactor legacy. EBR-II features a hexagonal fuel element with a sealed heat pipe and a passive air-cooling system. Oklo initially marketed a 1.5 MWe microreactor version of the Aurora, but has now expanded its capacity offerings from 15 MWe to 100 MWe.
Oklo received a site permit in 2019 from DOE to build its first Aurora facility at INL. In 2020, Oklo submitted a combined licence application to the Nuclear Regulatory Commission (NRC) to build and operate the facility. However, NRC denied the application, citing the company’s failure to provide sufficient design information. A revised application was submitted in September 2022.
Atomic Alchemy’s technologies also include capabilities to perform Neutron Transmutation Doping of silicon (NTD). This is considered a “gold-standard” process using neutrons produced in a nuclear reactor to convert some of the silicon atoms into phosphorus through nuclear transmutation. Oklo believes NTD offers a superior method for semiconductor doping because an entire ingot can be doped prior to wafering. Given the current high level of demand for state-of-the-art semiconductors, NTD capabilities may be transformative to the semiconductor industry.
Key highlights of the proposed acquisition include:
- Leveraging Complementary Technology to Scale and Accelerate Fuel Availability: Radioisotopes can enhance the economics of nuclear fuel recycling and accelerate fuel availability for Oklo’s powerhouses through the sales of high-value radioisotopes.
- Expanding into an Attractive Market: This proposed acquisition diversifies Oklo’s business and market reach into new sectors such as biotech, pharmaceuticals, space, defence, and semiconductors.
- Establishing Domestic Radioisotope Production: Oklo and Atomic Alchemy intend to develop specialised radioisotope production capabilities with Oklo’s fast reactor technologies and Atomic Alchemy’s versatile irradiation reactor technologies to address urgent supply shortages in life-saving medical radioisotopes and advanced industrial applications.
- Accelerating and Diversifying Oklo’s Revenue Streams: Oklo expects to begin generating revenue from radioisotope production following the proposed acquisition, with initial revenues anticipated prior to completing the first radioisotope production reactors. This potential additional revenue stream is expected to diversify Oklo’s income sources.
With this proposed acquisition, Oklo says it “intends to reinforce its position as a leader in advanced nuclear technology, combining energy production and critical material supplies into a unified, high-value creation approach”.
