Oklo acquires radioisotope production company Atomic Alchemy

The American company Oklo has signed a letter of intent (LOI) to acquire Atomic Alchemy, a US company specializing in the production of radioisotopes. Oklo’s planned fast reactor and fuel reprocessing technologies will produce valuable byproducts such as radioisotopes through appropriate processes.

Oklo is offering to acquire Atomic Alchemy for $25 million in an all-stock transaction (subject to client adjustments). All Oklo shares issued to existing Atomic Alchemy shareholders in connection with the transaction are expected to be locked up for several years. Once closed, the proposed transaction is expected to have minimal direct impact on Oklo’s operating cost structure and the proposed transaction is not expected to impact Oklo’s previously announced 2024 guidance.

The proposed acquisition builds on the strategic partnership announced between Oklo and Atomic Alchemy earlier this year. This was seen as an opportunity to combine Oklo’s planned power generation and fuel processing capabilities with Atomic Alchemy’s expertise in radioisotope production to accelerate fuel production for Oklo’s power plants and create new radioisotope revenue streams.

As demand for radioisotopes continues to rise, supplies are struggling to keep up due to aging reactor infrastructure and a fragmented global supply chain currently dominated by Russia, according to the British Institute of Radiology. Oklo says it aims to close this gap with robust radioisotope production facilities in the U.S. that leverage its core clean energy and fuel processing technologies.

“The proposed acquisition is expected to enable Oklo to significantly expand its footprint as our fast reactor and fuel processing technologies enable us to produce radioisotopes as a by-product,” said Jacob DeWitt, co-founder and CEO of Oklo. “By incorporating radioisotope production into our fuel refining process, Oklo creates an additional source of revenue and contributes to a more sustainable radioisotope supply chain.”

Oklo is developing the Aurora microreactor, which uses heat pipes to transfer heat from the reactor core to a supercritical carbon dioxide energy conversion system to generate electricity. It will use high grade low enriched uranium (HALEU) fuel. Oklo says the reactor is based on the Experimental Breeder Reactor-II (EBR-II) and the Space Reactor. The EBR-II has a hexagonal fuel cell with a sealed heat pipe and a passive air cooling system. Oklo initially sold a 1.5 MW version of the Aurora microreactor, but has now expanded its power offerings from 15 MW to 100 MW.

In 2019, Oklo received approval from the Department of Energy to build its first Aurora facility at INL. In 2020, Oklo submitted an application to the Nuclear Regulatory Commission (NRC) for a combined license to construct and operate the facility. However, the NRC rejected the application, citing the company’s failure to provide sufficient design information. The revised application was submitted in September 2022.

Atomic Alchemy’s technologies also include silicon neutron transmutation doping (NTD) capabilities. This is considered the “gold standard” process of using neutrons produced in a nuclear reactor to convert some silicon atoms into phosphorus through nuclear transmutation. Oklo believes NTD offers a superior semiconductor doping method because the entire ingot can be doped before fabrication of the wafer. Given the current high level of demand for advanced semiconductors, NTD’s capabilities have the potential to transform the semiconductor industry.

Highlights of the proposed acquisition include:

• Leveraging complementary technologies to scale and accelerate fuel availability. Radioisotopes can improve the economics of nuclear fuel reprocessing and speed up fuel availability for Oklo power plants through the sale of high-value radioisotopes.
• Entering an attractive market. The proposed acquisition diversifies Oklo’s business and market reach into new sectors such as biotechnology, pharmaceuticals, space, defense and semiconductor manufacturing.
• Establishing Domestic Radioisotope Manufacturing: Oklo and Atomic Alchemy intend to develop specialized radioisotope production capabilities using Oklo’s fast reactor technologies and Atomic Alchemy’s versatile irradiation reactor technologies to address critical shortages of 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 expected prior to completion of the first radioisotope production reactors. This potential additional revenue stream is expected to diversify Oklo’s revenue sources.

Oklo says that with this proposed acquisition, it “intends to strengthen its position as a leader in advanced nuclear technologies by integrating power generation and critical materials supply into a single approach to high value creation.”

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