Advanced reactor developer Oklo Inc. plans to go public through a merger with AltC Acquisition Corp., the company said July 11.
The transaction is expected to provide up to $500 million in gross capital from cash held in AltC's trust account, with net proceeds to be used to accelerate Oklo's business plan and fund the first deployment of the Aurora powerhouse, its planned commercial liquid metal fast reactor designed to produce up to 15 MW on both fresh and recycled nuclear fuel. The 15-MW design is expected to cost less than $60 million, officials said.
The transaction values Oklo at a pre-money equity value of $850 million, "roughly half the value of comparable clean energy go-public transactions," according to the company's announcement.
"The two most important inputs to a great future are abundant intelligence and abundant energy," said Sam Altman, co-founder and CEO of special purpose acquisition company AltC, as well as an investor and chairman at Oklo. "I have long been interested in the potential that nuclear energy offers to provide clean, reliable and affordable energy at great scale."
Under a special purpose acquisition company transaction, a blank-check company raises money before listing as a public company to merge with a private company and take it public. Interest in SPACs has waned as these companies have faced increased scrutiny from regulators and investors, although a pending $23 billion deal announced in May between Black Spade Acquisition Co. and electric-vehicle maker VinFast Auto Pte. Ltd. marks one of the biggest M&A deals in 2023 so far.
The Oklo transaction is expected to close in late 2023 or early 2024 and is subject to approval by shareholders of both companies. Upon closing, the combined company will operate as Oklo and the company expects to have up to $516 million in cash on its balance sheet, including existing cash and expected proceeds from AltC's trust account.
Oklo is the "best-positioned player to pursue commercialization of advanced fission energy solutions," Altman said.
Oklo has a site and fuel secured for its first plant, Altman said on a July 11 investor call to discuss the transaction. The first plant is expected to be online in 2026 or 2027, officials said.
Oklo management said the company's advanced fission technology has a history of successful operation first demonstrated by the experimental Breeder Reactor II, which sold and supplied power to the grid and provided waste recycling capabilities for more than 30 years. The reactor was operated by the Argonne National Laboratory.
"Our long-term goal is to build a wide range of advanced fission power plants, including small and large designs and designs that are economically competitive," Oklo co-founder and CEO Jacob DeWitte said. "We have advanced our technology, regulatory engagement and business model to a critical inflection point, and the substantial capital that we have the opportunity to raise from this transaction will be crucial in positioning Oklo for continued success."
Oklo has secured a site use permit from the US Energy Department for its reactor and a fuel award from the Idaho National Laboratory for a commercial-scale advanced fission power plant in Idaho.
The company has a significant pipeline of potential customers across several industries and has signed nonbinding indications of interest that could lead to sales of more than 700 MW, which executives said July 11 shows the market interest in the design's scalable size range and business model.
Oklo's design requires less land than traditional nuclear reactors and is expected to run for at least 10 years on recycled or fresh fuel before requiring refueling, which could make it an ideal option for data centers, utilities, defense facilities, communities, factories and industrial sites, officials said.
In May, Oklo announced plans to build two small commercial nuclear power plants in Ohio. The plants are expected to provide up to 30 MW of electric power and more than 50 MW of heating, with opportunities to expand.
Oklo's application for a 1.5-MW Aurora microreactor was rejected as incomplete by the US Nuclear Regulatory Commission in early 2022, but officials said in May that the company planned to submit a licensing application for a larger version of the design, potentially by the end of the year.
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