WASHINGTON, June 11 (Reuters) - Oklo ( OKLO ), a U.S.

company hoping to build micro nuclear power plants, said on

Wednesday the energy logistics agency of the Defense Department

has issued a notice of intent to award a power purchase

agreement for a pilot reactor.

WHY IT'S IMPORTANT

Nuclear power companies are seeking U.S. military contracts

after President Donald Trump signed executive orders last month

on boosting nuclear power.

In his first administration Trump also directed agencies to

develop small nuclear reactors on military bases but that did

not result in plants coming on line.

Oklo's ( OKLO ) project for the Air Force would produce up to 75

megawatts of electricity and usable heat. That's tiny compared

to today's 1,000 MW on average reactors, but developers hope the

smaller unit can be replicated easily in factories.

IS THE AGREEMENT FINAL?

No, but under the terms of the notice, Oklo ( OKLO ) would design,

construct, own, and operate the power plant, delivering

electricity and heat at Eielson Air Force Base in Alaska, under

a long-term agreement.

The value of the deal was not disclosed.

The U.S. Nuclear Regulatory Commission denied Oklo ( OKLO ) an

operating license in 2022. Oklo ( OKLO ) plans to reapply late in 2025

and hopes to receive one in 2027. Last month, Trump directed the

NRC to issue licenses within 18 months.

WHAT HAPPENED THE FIRST TIME?

In 2023, the U.S. military made an initial agreement for

Oklo ( OKLO ) to build a microreactor at Eielson by the end of 2027. But

later that year the military withdrew the intent to award Oklo ( OKLO ) a

more than $100 million contract.

PROLIFERATION CONCERNS

Some non-proliferation experts worry because Oklo's ( OKLO ) project

would extract energy from plutonium which can be used in a

nuclear weapon. Oklo ( OKLO ) says the plutonium would be wrapped up in

other highly-radioactive substances which would make it nearly

impossible use as fissile material.