Oklo, a company specialising in advanced nuclear technology, has announced plans to establish a fuel recycling facility in Tennessee.

This initiative is the first phase of an advanced fuel centre with investments potentially reaching $1.68bn.

The project is expected to create over 800 jobs and focus on converting used nuclear fuel into a valuable resource for advanced reactors, such as Oklo’s Aurora powerhouse.

According to Oklo, the initiative involves recovering usable material from spent nuclear fuel and fabricating it into fuel for advanced reactors, thus reducing waste volumes and offering more efficient disposal options.

The planned facility aims to utilise over 94,000 metric tons of stored used nuclear fuel nationwide, which contains energy reserves equivalent to about 1.3 trillion barrels of oil.

Oklo co-founder and CEO Jacob DeWitte said: “Fuel is the most important factor in bringing advanced nuclear energy to market.

“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. Tennessee is showing the nation that recycling can be done to support new nuclear development and growth.”

Oklo’s collaboration prospects include working with the Tennessee Valley Authority (TVA). Under this, the parties will explore recycling TVA’s used fuel at the new site and evaluating potential power sales from future Oklo powerhouses in the region.

If successful, this partnership would mark the first instance of a US utility converting used nuclear fuel into clean electricity via modern electrochemical methods. This would transform a former liability into a resource and establish a secure future fuel supply.

Oklo has completed a licensing project plan for the proposed facility with the US Nuclear Regulatory Commission and is engaged in pre-application discussions with the regulator.

The company anticipates initiating production of metal fuel for its Aurora powerhouses by the early 2030s, subject to regulatory approvals.

Tennessee Governor Bill Lee said: “Tennessee is well positioned to lead America’s energy independence, which is why we created the Nuclear Energy Fund to support and expand our state’s nuclear ecosystem.

“We’re proud to partner with Oklo to innovate for the future, while bringing continued opportunity and prosperity to Tennessee families.”

Last month, Oklo and its subsidiary Atomic Alchemy were selected for participation in three projects under the US Department of Energy’s Reactor Pilot Program. This programme aims to demonstrate reactor criticality by 4 July 2026.

The selections are intended to accelerate deployment timelines and provide insights that will aid long-term commercial licensing readiness.