Trump gov’t plans to make about 20 metric tonnes of plutonium from dismantled nuclear warheads available to US power firms

The United States government has chosen five companies, including nuclear energy company Oklo, to enter advanced talks over potentially using its Cold War-era plutonium as a nuclear reactor fuel.

The US Department of Energy made the announcement on Tuesday.

The Energy Department holds surplus US plutonium, which has a half-life of 24,000 years and must be handled with protective gear, at heavily guarded weapons facilities in states including South Carolina, Texas and New Mexico.

Oklo, whose stock price was up more than 5.5 percent to $69.51 per share, said it plans to develop the fuel with newcleo, a European company that aims to build high-tech nuclear reactors.

The Reuters news agency reported last year that the administration of US President Donald Trump plans to make about 20 metric tonnes of plutonium from dismantled nuclear warheads available to US power companies.

Last May, Trump ordered the halt of much of a programme to dilute and dispose of surplus plutonium, and instead provide it as a fuel for advanced nuclear technologies, a plan that some Democrats opposed.

In a letter in September, Senator Edward Markey of Massachusetts and Representatives Don Beyer of Virginia and John Garamendi of California said that 20 metric tonnes of weapons-usable plutonium was enough for approximately 2,000 nuclear bombs. Such a move “raises serious weapons proliferation concerns, makes little economic sense, and may adversely affect the nation’s defense posture”, they wrote, asking the agency to cancel the plan.

The other companies selected are privately held Exodys Energy, SHINE Technologies, Standard Nuclear and Flibe Energy, the US Energy Department said in a statement.

Oklo said in a statement that newcleo would bring fuel experience and potential project capital, subject to agreements, approvals and US security and safeguards requirements.

“This program creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner,” said Oklo cofounder and CEO Jacob DeWitte. “Material that has been set aside for disposal can instead be converted into fuel to produce electricity.”

Stefano Buono, newcleo CEO and founder, said using the plutonium as fuel would reduce US nuclear liabilities.

US Energy Secretary Chris Wright was on Oklo’s board of directors before joining Trump’s cabinet.

The department said the Surplus Plutonium Utilization Program should help companies secure private funding. It did not immediately respond to a request for comment about how the programme would ensure the materials are handled safely.