US Oklo has signed a non-binding letter of intent (LOI) with oil and gas producer Diamondback Energy to enter into a 20-year power purchase agreement (PPA). The proposed agreement focuses on engaging Oklo’s Aurora powerhouses to supply electricity to Diamondback’s operations in the Permian Basin. According to the terms of the LOI, Oklo intends to license, build, and operate powerhouses capable of generating 50 MW of electric power to Diamondback E&P, a wholly owned subsidiary of Diamondback near Midland, Texas.
Oklo is developing the Aurora microreactor, which uses heat pipes to transport heat from the reactor core to a supercritical carbon dioxide power conversion system to generate electricity. It will use HALEU fuel. Oklo says the reactor builds on the Experimental Breeder Reactor-II (EBR-II) and space reactor legacy. EBR-II features a hexagonal fuel element with a sealed heat pipe and a passive air-cooling system. Oklo initially marketed a 1.5 MWe microreactor version of the Aurora, but has now expanded its capacity offerings from 15 MWe to 100 MWe.
Oklo received a site permit in 2019 from the US Department of Energy (DOE) to build its first Aurora facility at Idaho National Laboratory (INL). In 2020, Oklo submitted a combined licence application to the Nuclear Regulatory Commission (NRC) to build and operate the Aurora microreactor at INL. However, NRC denied the application, citing the company’s failure to provide sufficient design information. A revised application was submitted in September 2022.
The LOI outlines options to renew and extend the potential PPA for an additional 20-year term. Oklo’s powerhouse designs are intended to be able to operate for 40 years, and because of Oklo’s design-build-own-operate business model, potential customers such as Diamondback are expected to be able to purchase power without complex ownership issues or other capital requirements. “By developing and providing a low-cost, high-reliability, and emission-free energy source, Oklo is poised to help meet the growing energy requirements of operators like Diamondback,” said Oklo CEO Jacob DeWitte.
