Oklo Signs LOI to Supply 50 Megawatts of Power to Diamondback Energy
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Insights
The agreement between Oklo and Diamondback Energy represents a noteworthy shift in the energy landscape, particularly within the oil and gas industry. By choosing to power its operations with Oklo's Aurora powerhouses, Diamondback is signaling a commitment to sustainability and emission reduction. This move may set a precedent for other companies in the sector, potentially leading to increased demand for clean energy solutions in oil and gas operations.
From an energy sector perspective, the integration of nuclear technology into traditional fossil fuel operations could be seen as a hedge against regulatory risks associated with carbon emissions. The 20-year term of the Power Purchase Agreement indicates a long-term strategy for Diamondback, which could provide cost stability against the volatility of traditional energy markets. Additionally, the option to renew and extend the PPA suggests confidence in the reliability and performance of Oklo's technology.
The collaboration between Oklo and Diamondback Energy could be interpreted as a proactive approach to meet increasingly stringent environmental regulations. Diamondback's initiative to adopt emission-free electricity sources for its operations in the Permian Basin could potentially improve its standing with stakeholders who are concerned about environmental impact. This move may also influence public policy by demonstrating the viability of clean energy in large-scale energy production environments.
Furthermore, the partnership aligns with broader national goals of energy security and emissions reductions. By ensuring a domestic supply of clean energy for critical infrastructure, such as oil and gas operations, the U.S. could reduce its dependency on foreign energy sources and lower its overall carbon footprint. The long-term nature of the agreement underscores the importance of sustainable practices in the face of climate change and the transition towards a greener economy.
For investors in Diamondback Energy, the announcement of the LOI with Oklo could be interpreted as a strategic move to lock in energy costs and potentially reduce operating expenses over the long term. The use of nuclear energy to power operations may offer a more predictable cost structure compared to traditional fossil fuels, which are subject to market fluctuations. This could lead to improved margins and financial performance for Diamondback.
However, it is important to note that the agreement is currently non-binding and the financial implications will remain unclear until the final terms of the PPA are disclosed. Investors should monitor the progress of this agreement, as the capital costs associated with the construction and operation of the powerhouses, as well as the terms of electricity pricing, will be key factors in determining the financial impact on Diamondback's bottom line.
- Oklo and Diamondback Energy signed a non-binding letter of intent (the “LOI”) to collaborate on a 20-year Power Purchase Agreement.
- Diamondback aims to use Oklo’s Aurora powerhouses to power its operations in the Permian Basin.
Oklo's Aurora powerhouse (Image: Gensler)
The LOI signed by Diamondback outlines its intent to enter into a 20-year PPA with Oklo. The proposed agreement focuses on engaging Oklo’s Aurora powerhouses to supply reliable and emission-free electricity to Diamondback’s operations in the Permian Basin. According to the terms of the LOI, Oklo intends to license, build, and operate powerhouses capable of generating 50 MW of electric power to Diamondback E&P LLC, a wholly owned subsidiary of Diamondback near
The LOI outlines options to renew and extend the potential PPA for an additional 20-year term. Oklo’s powerhouse designs are intended to be able to operate for 40 years, and because of Oklo’s design-build-own-operate business model, potential customers like Diamondback are expected to be able to purchase power without complex ownership issues or other capital requirements.
“By developing and providing a low-cost, high-reliability, and emission-free energy source, Oklo is poised to help meet the growing energy requirements of operators like Diamondback,” added DeWitte. The collaboration between Oklo and Diamondback represents a significant step towards emissions reductions and supporting national energy security by providing reliable access to electricity to power domestic energy operations.
About Oklo Inc.: Oklo is developing fast fission power plants to provide clean, reliable, and affordable energy at scale. Oklo received a site use permit from the
On July 11, 2023, Oklo and AltC Acquisition Corp. (“AltC”) (NYSE: ALCC) announced that they have entered into a definitive business combination agreement that upon closing would result in the combined company to be listed on the New York Stock Exchange under the ticker symbol “OKLO.”
About AltC Acquisition Corp.: AltC was formed for the purpose of effecting a merger, capital stock exchange, asset acquisition, stock purchase, reorganization or similar business combination with one or more businesses.
Forward-Looking Statements
This communication includes “forward-looking statements” within the meaning of the “safe harbor” provisions of the United States Private Securities Litigation Reform Act of 1995. Forward-looking statements may be identified by the use of words such as “estimate,” “goal,” “plan,” “project,” “forecast,” “intend,” “will,” “expect,” “anticipate,” “believe,” “seek,” “target,” “continue,” “could,” “may,” “might,” “possible,” “potential,” “predict” or other similar expressions that predict or indicate future events or trends or that are not statements of historical matters. These forward-looking statements include, but are not limited to, statements regarding the partnership between Oklo and Diamondback, including Diamondback’s intent to enter into a 20-year PPA; the expected market opportunity for Oklo and the consummation of the proposed business combination between Oklo and AltC (the “proposed business combination”). These forward-looking statements are based on information available to us as of the date of this news release and represent management’s current views and assumptions. Forward-looking statements are not guarantees of future performance, events or results and involve known and unknown risks, uncertainties and other factors, which may be beyond our control.
These statements are based on various assumptions, whether or not identified in this communication, and on the current expectations of Oklo’s management and are not predictions of actual performance. These forward-looking statements are provided for illustrative purposes only and are not intended to serve as and must not be relied on by any investor as, a guarantee, an assurance, a prediction or a definitive statement of fact or probability. Actual events and circumstances are difficult or impossible to predict and will differ from assumptions. Many actual events and circumstances are beyond the control of Oklo. These forward-looking statements are subject to known and unknown risks, uncertainties and assumptions about Oklo that may cause our actual results, levels of activity, performance or achievements to be materially different from any future results, levels of activity, performance or achievements expressed or implied by such forward-looking statements. Such risks and uncertainties, include risks related to the deployment of Oklo’s powerhouses; the risk that Oklo is pursuing an emerging market, with no commercial project operating, regulatory uncertainties; the potential need for financing to construct plants, market, financial, political and legal conditions; the inability of the parties to successfully or timely consummate the proposed business combination, including the risk that the approval of the shareholders of AltC or Oklo is not obtained; the effects of competition; changes in applicable laws or regulations; the outcome of any government and regulatory proceedings, investigations and inquiries; each case, under the heading “Risk Factors,” and other documents filed, or to be filed, with the Securities and Exchange Commission (“SEC”) by AltC. If any of these risks materialize or Oklo’s assumptions prove incorrect, actual results could differ materially from the results implied by the forward-looking statements relating to Oklo. There may be additional risks that Oklo does not presently know or that Oklo currently believes are immaterial that could also cause actual results to differ from those contained in the forward-looking statements. In addition, forward-looking statements reflect Oklo’s expectations, plans or forecasts of future events and views as of the date of this communication. Oklo anticipates that subsequent events and developments will cause Oklo’s assessments to change. However, while Oklo may elect to update these forward-looking statements at some point in the future, Oklo specifically disclaims any obligation to do so. These forward-looking statements should not be relied upon as representing Oklo’s assessments as of any date subsequent to the date of this communication. Accordingly, undue reliance should not be placed upon the forward-looking statements.
Additional Information About the Business Combination and Where to Find It
The proposed business combination will be submitted to shareholders of AltC for their consideration. AltC has filed a registration statement on Form S-4 (as amended, and may be further amended from time to time, the “Registration Statement”) with the SEC, which includes a preliminary proxy statement/prospectus/consent solicitation statement to be distributed to AltC’s shareholders in connection with AltC’s solicitation for proxies for the vote by AltC’s shareholders in connection with the proposed business combination and other matters described in the Registration Statement, as well as the prospectus relating to the offer of the securities to be issued to Oklo’s shareholders in connection with the completion of the proposed business combination. After the Registration Statement has been declared effective, AltC will mail a definitive proxy statement/prospectus/consent solicitation statement and other relevant documents to its shareholders as of the record date established for voting on the proposed business combination. AltC’s shareholders and other interested persons are advised to read the preliminary proxy statement/prospectus/consent solicitation statement and any amendments thereto and, once available, the definitive proxy statement/prospectus/consent solicitation statement, in connection with AltC’s solicitation of proxies for its special meeting of shareholders to be held to approve, among other things, the proposed business combination, as well as other documents filed with the SEC by AltC in connection with the proposed business combination (the “Special Meeting”), as these documents contain and will contain important information about AltC, Oklo and the proposed business combination.
Shareholders may obtain a copy of the preliminary or definitive proxy statement/prospectus/consent solicitation statement, once available, as well as other documents filed by AltC with the SEC, without charge, at the SEC’s website located at www.sec.gov or by directing a written request to AltC Acquisition Corp., 640 Fifth Avenue, 12th Floor,
Participants in the Solicitation
AltC, Oklo and certain of their respective directors, executive officers and other members of management and employees may, under SEC rules, be deemed to be participants in the solicitation of proxies from AltC’s shareholders in connection with the Special Meeting. Information regarding persons such persons who may, under SEC rules, be deemed participants in the solicitation of AltC’s shareholders in connection with the Special Meeting, is set forth in the preliminary proxy statement/prospectus/consent solicitation statement.
Information about the directors and executive officers of Oklo and a description of their direct or indirect interests is set forth in the sections entitled “Certain Relationships and Related Party Transactions – Oklo’s Related Person Transactions” and “Interests of Certain Persons in the Business Combination” included in the Registration Statement.
Information about the directors and executive officers of AltC, a description of their direct or indirect interests and their beneficial ownership of AltC’s capital stock is set forth in the sections entitled “Other Information about AltC – Management, Directors and Executive Officers,” “Certain Relationships and Related Party Transactions – AltC’s Related Person Transactions,” “Interests of Certain Persons in the Business Combination” and “Beneficial Ownership of Securities” included in the Registration Statement. The most recent amendment to the Registration Statement was filed on April 2, 2024, and is available here.
Shareholders, potential investors and other interested persons should read the preliminary proxy statement/prospectus/consent solicitation statement and any amendments thereto carefully before making any voting or investment decisions. You may obtain free copies of these documents from the sources indicated above.
No Offer or Solicitation
This communication does not constitute an offer to sell or the solicitation of an offer to buy any securities, or a solicitation of any vote or approval, nor shall there be any sale of securities in any jurisdiction in which such offer, solicitation or sale would be unlawful prior to registration or qualification under the securities laws of any such jurisdiction. This communication is not, and under no circumstances is to be construed as, a prospectus, an advertisement or a public offering of the securities described herein in
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Media Contact for Oklo:
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ICR, Inc.
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Source: Oklo Inc.
FAQ
What is the collaboration between Oklo and Diamondback Energy about?
What is the purpose of the Power Purchase Agreement?
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