Oklo Inc., a company specializing in advanced fission power, experienced a significant surge in its stock value, climbing 10% following the announcement that it received a Notice of Intent to Award (NOITA) from the U.S. Defense Logistics Agency Energy. This agency, acting on behalf of the U.S. Air Force, intends to contract Oklo to deliver clean nuclear energy to Eielson Air Force Base located in Alaska. This development is perceived as a pivotal moment for Oklo and signifies a growing momentum for the deployment of small modular reactors (SMRs), particularly in remote or strategically important areas. If the deal is finalized, it could fundamentally alter how the U.S. military powers its installations.

The proposed project involves Oklo supplying its Aurora microreactor technology to Eielson Air Force Base. The primary objective is to provide a clean, reliable, and resilient power source, with a projected capacity of up to 75 megawatts (MW) of electricity and heat. This initiative aims to enhance the base's energy independence and significantly reduce its reliance on fossil fuels, aligning with broader national energy security goals. The selection of Oklo underscores a federal initiative to integrate SMRs into U.S. military bases to bolster energy security and operational autonomy.

The market's reaction to the news was immediate and robust. Oklo's stock jumped 10% upon the announcement. During intraday trading, shares peaked with a remarkable 28% gain, reaching $67.15 (with an intraday high recorded at $67.58), compared to a previous closing price of approximately $52.02 and an opening price of $53.93. Trading volume was exceptionally high, with over 26.3 million shares exchanged, indicating strong investor interest. This event contributes to Oklo's impressive stock performance in 2025, which has seen an over 217% year-to-date gain and an approximate 561% gain over the past 12 months.

The potential deal with the Air Force is considered highly significant not just for Oklo, but for the wider energy and defense sectors. Eielson Air Force Base, being a remote yet critical military installation, stands to benefit greatly from a dependable, independent energy source. Oklo's Aurora microreactor design is particularly well-suited for such isolated locations due to its compact and transportable nature, offering a viable alternative where traditional power sources might be unreliable or economically prohibitive. This project supports a larger U.S. government strategy to deploy SMRs on military bases to ensure energy resilience.

However, the path to realizing this project involves several crucial steps. The NOITA is an expression of intent, not a finalized contract. Oklo must still navigate the regulatory landscape, primarily by securing a combined construction and operation license from the U.S. Nuclear Regulatory Commission (NRC). An earlier application by Oklo was denied by the NRC in 2022, necessitating a reapplication with an updated design that meets all safety and technical standards. Oklo is reportedly targeting NRC approval by 2027, which suggests that actual energy delivery to the base might commence around 2028 or later.

Market analysts have responded positively to the development. Seaport, for instance, has issued a "Buy" rating for Oklo stock with a price target of $71. Analysts highlight Oklo's vertical integration and its in-house fuel fabrication capabilities as significant competitive advantages. The strong interest in this deal also reflects a broader market trend favoring SMRs for defense applications and remote infrastructure, where energy security and carbon reduction are paramount.

Should the Eielson Air Force Base project proceed successfully, it could serve as a crucial model for future nuclear energy innovation. The Aurora microreactor, being a small, factory-built, and transportable unit, offers a more flexible deployment model compared to traditional large-scale nuclear reactors. Its successful implementation could pave the way for wider adoption across other military bases and potentially extend to remote civilian communities seeking reliable, carbon-free power. This aligns with a global trend towards cleaner and more resilient energy solutions.

For investors, Oklo's current momentum is undeniably strong, fueled by this significant potential government contract, positive market sentiment, and its focus on cutting-edge nuclear technology. Nevertheless, it is important to acknowledge the inherent risks. The finalization of the contract is contingent upon regulatory approvals, successful contract negotiations, and Oklo's ability to execute the project technically. Delays in any of these areas could impact the project's timeline and Oklo's financial projections.

In conclusion, the U.S. Air Force's selection of Oklo for the Eielson Air Force Base project represents a potential landmark achievement for the company and a significant step forward for the advanced nuclear energy sector. If Oklo successfully navigates the upcoming regulatory and contractual hurdles, this project could not only power a critical military base but also catalyze a new era of decentralized, clean nuclear energy in the United States, showcasing the transformative potential of SMR technology.