Oklo Inc. (OKLO) saw its stock price surge 5.10% in pre-market trading on Wednesday, following news that the company is moving closer to finalizing a nuclear power agreement with the US Air Force. The advanced nuclear technology company has been selected by the Defense Logistics Agency Energy to provide clean and reliable power to Eielson Air Force Base in Alaska.

Under the anticipated agreement, Oklo will design, construct, own, and operate an Aurora powerhouse at the Eielson Air Force Base. The project, which is part of the Department of the Air Force's microreactor pilot program, aims to enhance energy resilience and reliability for critical national security infrastructure. Oklo's innovative fast reactor technology is expected to deliver both electricity and heat to the base under a long-term power purchase agreement.

While the value of the deal was not disclosed, this development marks a significant step forward for Oklo, which had previously faced setbacks in its licensing process. The company plans to reapply for an operating license with the U.S. Nuclear Regulatory Commission late in 2025, with hopes of receiving approval in 2027. This project aligns with recent executive orders aimed at boosting nuclear power, particularly in military applications, and could potentially open doors for more contracts in the future if successful.