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Investing.com -- On Wednesday, Oklo Inc (NYSE:OKLO) stock surged 27.5% and Centrus Energy (NYSE:LEU) shares rose 7.1% after the Department of Defense selected Oklo to deploy its Aurora nuclear reactor at Eielson Air Force Base in Alaska.

The Defense Logistics Agency Energy issued a Notice of Intent to Award to Oklo, designating the advanced nuclear technology company as the "apparent successful offeror" following a comprehensive evaluation process. Under the anticipated agreement, Oklo would design, build, own, and operate the power plant, providing both electricity and heat to the Air Force base under a long-term power purchase agreement.

This project serves as the Department of the Air Force’s microreactor pilot program aimed at enhancing energy resilience for critical national security infrastructure. Oklo’s Aurora powerhouse design uses fast reactor technology to provide continuous energy that can operate independently from the grid.

"This Notice of Intent to Award reflects continued confidence in Oklo’s ability to deliver clean and secure energy solutions for mission-critical infrastructure," said Jacob DeWitte, Co-Founder and CEO of Oklo.

Centrus Energy’s gains appear to be related to its existing memorandum of understanding with Oklo to supply High-Assay Low-Enriched Uranium (HALEU) fuel for Aurora reactors. William Blair analyst Jed Dorsheimer noted that Centrus, as the only NRC-licensed HALEU enricher currently, stands to benefit directly from new Oklo reactor deployments. While a HALEU market doesn’t fully exist yet, Dorsheimer estimates prices could reach up to $1,000 per separative work unit, significantly higher than the approximately $170 for traditional low-enriched uranium.

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