US-based nuclear power and fuel recycling company Oklo plans to design, build, and operate a fuel recycling facility in Tennessee as the first phase of an advanced fuel centre using investment totalling up to $1.68bn. The initial investment will be for the construction of a facility to recycle used nuclear fuel into fuel for fast reactors such as Oklo’s Aurora powerhouse. The new facility will be the first of its kind in the US and is expected to create more than 800 high-quality jobs.

Oklo is also exploring opportunities with the Tennessee Valley Authority (TVA) to recycle the utility’s used fuel at the new facility and to evaluate potential power sales from future Oklo powerhouses in the region to TVA. This collaboration would mark the first time a US utility has explored recycling its used fuel into clean electricity using modern electrochemical processes, turning a legacy liability into a resource while creating a secure fuel supply for the future.

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 high-assay low-enriched uranium (HALEU) fuel. Oklo says the reactor builds on the Experimental Breeder Reactor-II (EBR-II) that operated at Argonne National Laboratory (ANL) from 1964 to 1994. 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.

“Fuel is the most important factor in bringing advanced nuclear energy to market,” said Jacob DeWitte, Oklo co-founder & CEO. “By recycling used fuel at scale, we are turning waste into gigawatts, reducing costs, and establishing a secure US supply chain that will support the deployment of clean, reliable, and affordable power.”

Oklo says the recycling facility will recover usable material from used nuclear fuel and fabricate it into fuel for advanced reactors. This process can reduce waste volumes for more economical, clean, and efficient disposal pathways.

Oklo has completed a licensing project plan for the fuel recycling facility with the US Nuclear Regulatory Commission (NRC) and is currently in pre-application engagement with the NRC staff. In July, Oklo completed pre-application readiness assessment for Phase 1 of the combined licence application for Oklo’s first commercial Aurora powerhouse. The facility in Tennessee is expected to begin producing metal fuel for Aurora powerhouses by the early 2030s, following regulatory review and approvals.

The fuel recycling facility is the first phase of Oklo’s larger advanced fuel centre, a multi-facility campus aimed at supporting recycling and fuel fabrication. By locating in Tennessee, Oklo is helping position the state as an epicentre of America’s advanced nuclear era, targeting solutions for used fuel while attracting high-skilled jobs and over $1bn in private investment.