Oct 17 (Reuters) - Nuclear technology firm Oklo ( OKLO )

said on Friday it has signed an agreement with Europe-based

newcleo to develop advanced fuel fabrication and manufacturing

infrastructure in the U.S.

Under the agreement, nuclear reactor developer newcleo plans

to invest up to $2 billion. Sweden's advanced nuclear technology

developer Blykalla is also considering co-investing in the same

projects and procuring fuel-related services from them.

Shares of Sam Altman-backed Oklo ( OKLO ) were up 1.7% in premarket

trading.

Nuclear power in the U.S. has been gaining traction after

decades of stagnation, fueled by surging electricity demand from

energy-hungry data centers and the electrification of

transportation and manufacturing industries.

The investments announced on Friday, which will include

multiple projects, will be regulated by the U.S. to promote

transatlantic cooperation and enhance energy security, with

further details on specific projects to be disclosed in upcoming

agreements.

In September, the U.S. energy department had selected Oklo ( OKLO ),

along with three other companies for its pilot program to build

advanced nuclear fuel lines as part of Trump administration's

efforts to strengthen domestic supply chains.

Oklo ( OKLO ) CEO Jacob DeWitte said fissioning surplus plutonium is

the best way to eliminate a legacy liability while creating an

abundant near-term fuel source.

"It can accelerate the deployment of multiple gigawatts of

advanced reactors and serve as a bridge fuel until uranium

enrichment and recycling scale up," DeWitte said.

(Reporting by Pooja Menon in Bengaluru; Editing by Shilpi

Majumdar and Mrigank Dhaniwala)