Oklo has been selected by the US Department of the Air Force as the preferred awardee to build and operate the first commercial nuclear microreactor at a US military installation. The site is Eielson Air Force Base in Alaska, located roughly 26 miles southeast of Fairbanks — a remote, frigid location that presents serious challenges for conventional power supply.
The envisioned contract is a 30-year, fixed-price agreement executed in partnership with the Defense Logistics Agency Energy. Oklo will build and operate a 5-megawatt electric microreactor at Eielson, retaining ownership of the reactor while the Air Force purchases the electricity generated. The definitive contract will take effect once Oklo secures a license from the Nuclear Regulatory Commission. Pricing negotiations are still ongoing, but the contractor selection followed a thorough competitive evaluation.
Michael Saunders, Acting Assistant Secretary of the Air Force for Energy, Installations and Environment, stated that Oklo was chosen for its commitment to safety and its ability to meet the installation’s operational requirements. The Department is also working with the Nuclear Regulatory Commission to conduct an environmental review of the project. The base is home to the 354th Fighter Wing, which flies fifth-generation F-35A jets that demand a continuous, reliable power supply — even in polar conditions.
Oklo’s Aurora design can run on recycled nuclear waste as fuel and operate for up to ten years without refueling. It uses a fast-spectrum reactor with liquid metal cooling, a combination that delivers greater efficiency than conventional reactor designs. The Department of Energy defines microreactors as factory-assembled systems, transportable in complete form by rail, ship, or truck, and equipped with passive safety features that allow operation without a large team of specialized technicians.
The road to Eielson has been anything but straightforward. Eielson was first identified as a preferred demonstration site for military microreactor technology back in 2018. In 2023, the DLA had already signaled its intent to award the contract to Oklo, only to reverse course following a competitor’s protest. The new selection, announced in June 2025, has effectively reinstated Oklo at the heart of the program. UBS analysts, while maintaining a cautious stance on the stock’s valuation, acknowledge that Oklo is well positioned to benefit from government support for advanced nuclear, and that federal validation opens the door to future deployment opportunities.
If the licensing process concludes on schedule, Eielson will become the real-world proving ground for American military microreactors. A successful outcome could reshape the scale of the market entirely: the United States operates hundreds of military bases around the globe, many of them in remote areas where energy independence carries direct strategic value. Oklo would find itself in a competitive position that would be extremely difficult for any rival to replicate.
