US to Utilize Surplus Plutonium for Nuclear Energy Expansion

The US government is launching a program to convert surplus plutonium from Cold War nuclear weapons into fuel for advanced reactors. This initiative, part of the Trump administration's efforts to expand nuclear energy, involves several companies, including Oklo Inc. Critics, however, raise concerns about safety and the feasibility of such projects. As demand for electricity grows, especially from AI and data centers, nuclear power is gaining renewed interest. The program aims to enhance domestic fuel supplies and attract private investment, but past failures in similar projects cast doubt on its success.

By Narendra Chaudhary May 27, 2026, 05:49 IST

US Government's Initiative on Surplus Plutonium

The United States is set to repurpose surplus plutonium from its Cold War nuclear arsenal for commercial reactor developers, as part of an initiative by the Trump administration aimed at boosting nuclear energy growth. The Department of Energy has chosen Oklo Inc. along with four other companies to enter advanced discussions under its Surplus Plutonium Utilization Program. This program will make available nearly 20 metric tonnes of weapons-grade plutonium for conversion into fuel suitable for advanced nuclear reactors.

The additional firms involved in these negotiations include Exodys Energy, Shine Technologies, Standard Nuclear, and Flibe Energy Inc. Oklo, headquartered in Santa Clara, believes this initiative could alleviate concerns regarding potential uranium shortages as the industry seeks to innovate a new generation of nuclear reactors. Jacob DeWitte, the CEO of Oklo, stated, “This program creates a pathway to use existing surplus material as bridge fuel for advanced reactors to bring more reactors online sooner.” He emphasized that material earmarked for disposal could be transformed into fuel for electricity generation through fission.

Oklo plans to collaborate with the European nuclear firm Newcleo on this project. Following the announcement, Oklo's shares increased by 4.3%. The Energy Department indicated that the program aims to enhance domestic nuclear fuel supplies, promote innovation in American recycling technologies, and attract private sector investment to support the nation's nuclear revival.

As electricity demand surges, particularly due to artificial intelligence and data centers, nuclear energy is receiving renewed backing from both political and commercial sectors. Many technology firms and governments are turning to nuclear power as a reliable source of carbon-free electricity. However, there are critics who express concerns regarding the use of weapons-grade plutonium, highlighting safety and security issues, as well as the shortcomings of past government-supported initiatives.

Notably, the first Trump administration halted a significant plutonium fuel project in South Carolina in 2018 after the estimated costs for the Mixed Oxide Fuel Fabrication Facility soared to nearly $48 billion, with completion pushed back to the 2040s. Edwin Lyman, who oversees nuclear power safety at the Union of Concerned Scientists, criticized the new strategy, stating, “Given the complexity and expense of converting this material into reactor fuel, it seems impractical for any private entity to undertake such a hazardous project.” He further asserted that the safest method for disposing of this surplus plutonium, which is an extremely hazardous waste, is to bury it deep underground.