Oklo wins U.S. Air Force microreactor deal for Alaska base under long-term PPA

Oklo Inc. (NYSE: OKLO), the American advanced nuclear technology company based in Santa Clara, California, has received a Notice of Intent to Award (NOITA) from the Defense Logistics Agency Energy, acting on behalf of the U.S. Department of the Air Force and Department of Defense. The NOITA names Oklo as the intended awardee for a long-term contract to build, own, and operate an Aurora microreactor at Eielson Air Force Base in Alaska. This development, confirmed on June 11, 2025, marks a critical advance in the U.S. military’s deployment of resilient clean energy infrastructure and could establish a new commercial revenue stream for Oklo.

The project would make Oklo one of the first companies to deploy a microreactor under a federal defense contract. The proposed Aurora powerhouse will supply both electricity and heat to the remote Arctic base, operating independently from the regional power grid under a firm-fixed-price power purchase agreement. The NOITA reinstates Oklo’s status as the apparent successful bidder after a prior award in 2023 was rescinded due to a bid protest.

What is the Eielson AFB microreactor project?

Eielson Air Force Base, located near Fairbanks, Alaska, is a forward-operating installation supporting the U.S. Air Force’s 354th Fighter Wing and its fleet of F-35A stealth fighters. The site’s remote location, extreme weather, and reliance on fuel imports make it a prime candidate for autonomous, on-site energy generation. The microreactor pilot aims to enhance mission-critical energy security by enabling the base to operate independently from external fuel or grid infrastructure.

Oklo’s Aurora reactor is designed to deliver both electricity and process heat. The combined output is essential for maintaining base operations in Arctic conditions, where heating loads are high and power disruptions could compromise national defense readiness. The project is a centerpiece of the Air Force’s broader effort to integrate advanced nuclear systems across remote installations.

Why did the Defense Logistics Agency select Oklo’s Aurora reactor?

The Aurora design uses a liquid metal–cooled fast reactor, offering passive safety, low maintenance, and multi-year refueling cycles. Oklo’s approach has been shaped for defense applications requiring transportable, autonomous power. The design’s compact footprint and robust safety systems are optimized for locations like Eielson, where fuel logistics and grid instability are constant challenges.

The selection reflects the Department of Defense’s confidence in Oklo’s engineering and regulatory readiness. According to statements from Oklo, the Air Force pilot is structured as a multi-decade, fixed-price agreement contingent on licensing milestones and site-specific clearances. Federal evaluators emphasized the value of Aurora’s grid-independence and dual-mode output—electricity and heat—in mission-critical scenarios.

How has Oklo’s regulatory pathway progressed?

Oklo was the first private developer to secure a site use permit from the U.S. Department of Energy for a commercial advanced reactor. It also submitted the first custom combined license application (COLA) to the U.S. Nuclear Regulatory Commission (NRC). Although the NRC rejected Oklo’s initial license in 2022 citing insufficient detail, the firm plans to resubmit by late 2025 under streamlined procedures.

Regulatory momentum has shifted following federal executive orders mandating faster review timelines for small reactor applications. In 2024, the NRC accepted Oklo’s topical report for reactor operator licensing—an essential step in the pre-licensing audit process. If a new license application is submitted on schedule, Aurora’s commissioning could align with the Air Force’s 2028 operational target.

How has Oklo stock reacted and what do analysts say?

Shares of Oklo surged nearly 24% on June 11, reaching $65.39 in response to the NOITA. The announcement has contributed to a broader year-to-date rally of over 450% for the nuclear startup. Trading volumes soared as institutional interest grew following the clear signal of government-backed revenue potential.

Seaport Research Partners upgraded Oklo to a “Strong Buy” with a $71 price target, citing the contract’s long-term cash flow prospects. Analysts noted that while the company remains pre-revenue and reported a net loss of $0.74 per share in FY24, the firm’s capital-light PPA model and direct access to HALEU fuel offer strategic advantages over other developers.

Some sentiment remains cautious. InvestingPro and TipRanks flagged potential overvaluation risk, given Oklo’s limited operational track record and heavy reliance on licensing success. Nonetheless, consensus across major analyst platforms, including Barron’s and Morningstar, points to Oklo as a frontrunner in the emerging microreactor space, particularly for government and industrial applications.

What does this mean for Oklo’s future revenue streams?

If finalized, the Eielson AFB project would be Oklo’s first commercial revenue contract. The power purchase agreement structure locks in a federal customer over decades, creating recurring revenue and helping de-risk capital investment. It also validates Oklo’s business model, which focuses on building, owning, and operating reactors rather than merely selling hardware.

The Department of Defense has previously indicated that the microreactor project could be valued at more than $100 million. Oklo expects that successful execution at Eielson could unlock additional opportunities at other remote military sites, U.S. territories, and Arctic installations. The deal may also support future applications with NASA, the Department of Energy, and Homeland Security.

What are the risks and challenges ahead?

Key challenges include completing NRC licensing, finalizing the power purchase agreement, and managing long lead-time components such as HALEU fuel. There are also reputational risks related to public scrutiny of nuclear projects and nonproliferation concerns. Although Oklo emphasizes that its plutonium-bearing fuel is not weapons-grade, critics have raised alarms over the use of recycled materials.

Financially, Oklo remains in its early growth phase with no operational revenue. The firm has relied on public market fundraising since its reverse merger with AltC Acquisition Corp. in 2024. Analysts continue to track cash flow, dilution risk, and cost overruns. Timely regulatory approvals will be crucial to maintaining investor confidence and market momentum.

Outlook for Oklo and the microreactor industry

Analysts expect the Eielson project to become a model for future Department of Defense deployments. The intersection of energy security, decarbonization mandates, and Arctic defense priorities positions microreactors as a favored solution for resilient infrastructure. Oklo, along with competitors like BWX Technologies and X-Energy, is well placed to benefit from a wave of federal procurement.

If Oklo meets its 2025–2026 licensing milestones and begins construction by 2027, the reactor could go online before the end of the decade—an aggressive but feasible timeline under current policy support. Long-term, microreactors could serve industrial, mining, and space exploration use cases. For Oklo, this award is more than a contract—it is a validation of the company’s strategy to deliver zero-carbon energy through scalable, autonomous nuclear systems.