The U.S. government has more surplus plutonium than it knows what to do with. As a result, the Department of Energy is working on a plan to turn that extra material into fuel for advanced nuclear reactors.

The government chose Oklo Inc. and four other nuclear companies to start advanced negotiations for this project. To make it happen, Oklo is teaming up with a European company called newcleo. Together, they want to take material that was set aside for disposal and use it to generate reliable electricity.

Turning Waste Into Nuclear Fuel

Getting fuel for advanced reactors is a major challenge. Right now, domestic fuel infrastructure is still scaling up, so companies need creative ways to find fuel. This new program helps solve that problem by using what is already available.

“Fuel supply constraints are a key throttle to advanced reactor development,” said co-founder and CEO Jacob DeWitte. “This program creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner. Material that has been set aside for disposal can instead be converted into fuel to produce electricity through fission.”

The whole process will have to follow strict U.S. security, safeguards, and material tracking rules. If everything goes according to plan, it will turn a long-term waste management issue into a useful source of domestic energy.

A $2 Billion Partnership

This project is part of a larger plan between Oklo and newcleo. In October 2025, the two companies teamed up to design and build fuel manufacturing factories in the U.S. Additionally, the partnership includes a potential investment of up to $2 billion.

While Oklo is leading the plutonium project, newcleo is bringing its own fuel experience and money to the table. In February 2026, newcleo started talking with the U.S. Nuclear Regulatory Commission about designs for both a fuel facility and a new reactor.

“We are proud of this transatlantic partnership with Oklo to deliver on our promise of reducing nuclear liabilities through our fuel and reactor technologies,” said newcleo CEO and founder Stefano Buono. “The U.S. is taking a visionary approach to the fuel cycle, and we look forward to contributing to it.”

While this is a great plan, there are still final agreements and official approvals left to clear.