US small modular reactor (SMR) company Oklo has partnered with European advanced nuclear reactor firm Newcleo to develop advanced fuel fabrication and manufacturing infrastructure in the US.

The agreement, which is subject to customary approvals, will see Newcleo invest up to $2 billion through an affiliated investment vehicle into the infrastructure. The investments are likely to span several projects with a focus on creating a robust and resilient fuel ecosystem.

The partnership aims to foster co-investment into, and colocation of, fuel fabrication facilities and could include repurposing surplus plutonium consistent with established US safety and security requirements.

“Fissioning surplus plutonium is the best way to eliminate a legacy liability while creating an abundant near-term fuel source. It can accelerate the deployment of multiple gigawatts of advanced reactors and serve as a bridge fuel until uranium enrichment and recycling scale up,” said Jacob DeWitte, co-founder and CEO of Oklo.

In addition, Swedish SMR developer Blykalla has announced that it is currently considering co-investing and procuring fuel-related services from the projects. Earlier this month, the company signed a non-binding Memorandum of Understanding (MoU) with Evroc and Studsvik to explore the development of an SMR-powered data center in Nyköping, Sweden.

“This strategic partnership proves that energy independence relies on advanced fuels and promotes an integrated closed-loop fuel cycle. Newcleo and its partners are ready to add value to the transatlantic cooperation in providing clean, safe, and secure energy. The agreement proves that the US and Europe can lead in this sector,” said Stefano Buono, founder and CEO of Newcleo.

Within the SMR space, Oklo has been by far the most active in deal count. The majority of its deals have been signed with data center firms, boasting a pipeline of more than 14GW, most of which are non-binding. Notable deals include a non-binding Master Power Agreement signed last December with US data center developer Switch to supply up to 12GW of power through 2044, a 500MW deal with Equinix, and a 100MW Letter of Intent with Prometheus Hyperscale.

The company is currently developing a 75MW modular reactor dubbed the Aurora Powerhouse. It aims to deliver its first reactor by 2027. In August, it was announced as one of 11 advanced nuclear companies to be selected to take part in the US Department of Energy’s (DOE) Nuclear Reactor Pilot Program. It was also selected as part of the DOE’s Advanced Nuclear Fuel Pilot Project earlier this month.

Newcleo, which was founded in 2021, is currently developing a lead-cooled fast reactor with a planned capacity of around 200MW. The company was initially based in the UK; however, following a review of its global operations, it decided to concentrate its resources in the European and US markets. It is now headquartered in Paris.