Better Energy Stock: Oklo vs. Centrus Energy

Industry Overview - Nuclear energy is regaining favor globally due to its efficiency, reliability, and zero emissions, with a focus on recommissioning old plants and developing new technologies like small modular reactors (SMRs) [1] - The U.S. Department of Energy estimates a need for 200 gigawatts (GW) of new nuclear capacity to meet future power demands and net-zero emission goals, planning to add 35 GW by 2035 and 15 GW per year through 2040 [6] Company Profiles Oklo - Founded in 2013, Oklo is developing advanced fission power plants using metal-fueled fast-reactor technology, with its core product being the Aurora powerhouse [7] - The Aurora powerhouses are designed to produce electricity in compact sizes, initially targeting 15 MWe and 75 MWe, with potential expansion to 100 MWe and higher [7] - Oklo aims to have its first Aurora powerhouse operational by late 2027 or early 2028, but has not yet built any operational units or secured binding customer agreements [9] Centrus Energy - Centrus Energy, operational since 1998 and restructured in 2014, provides nuclear fuel components and enrichment services, primarily generating revenue from selling low-enriched uranium (LEU) [10] - The company currently relies on outside sources for LEU, including an agreement with a Russian entity, but faces a need to replace about 25% of enriched uranium imports from Russia due to an expected import ban by 2028 [11] - Centrus aims to produce LEU and high-assay, low-enriched uranium (HALEU) in-house using advanced centrifuge technology, with plans to expand its enrichment capacity contingent on funding and customer commitments [13] Investment Considerations - Both Oklo and Centrus Energy are positioned to benefit from favorable tailwinds in the nuclear energy sector, but Oklo lacks a commercial product and will take two to three years before its reactor comes online [15] - Centrus Energy is established as a provider of key components used in nuclear plants, generating revenue currently, which gives it an edge in investment considerations [15]