Next-generation nuclear power company Oklo (OKLO 10.16%) was active on the stock market Tuesday. Investors flocked to it on news of a major U.S. state potentially expanding its nuclear-generating capacities. The ongoing conflict in the Middle East might also be shaping market sentiment on alt-energy companies.
Ultimately, Oklo's shares closed the day 10% higher, well ahead of the 1.1% increase of the S&P 500 (^GSPC 1.11%).
New York needs nuclear, Hochul claims
Late on Monday, New York Governor Kathy Hochul announced she is directing the New York Power Authority to develop at least one new nuclear power plant. She added this should have 1 gigawatt of electricity-generating potential, at a minimum.
Image source: Getty Images.
In a speech delivered at the state's Niagara County Power Project, a hydroelectric facility located near the Canadian border, Hochul spoke of New York reaching "energy independence" to keep attracting large industrial companies. Numerous regions of upstate New York have been affected by "industrial flight" over the past few decades.
Addressing worries about the safety of nuclear-generating assets, Hochul said that any plant built in the state "will be a model of 21st-century nuclear design with safety at the forefront, automatic safety systems to enhance the containment, and rigorous environmental standards."
Oklo is surely an option
Hochul didn't mention any company that might be a candidate for the project, but Oklo could very well fit the bill. It aims to develop compact nuclear reactors that transform recycled nuclear waste into energy. Oklo watchers should certainly monitor New York's progress with this project, and hold on tight to their shares if the company gets involved in it.
Meanwhile, as of late afternoon Tuesday, the ceasefire in the Iran-Israel conflict seemed to be holding, albeit tentatively. Iran apparently has contingency plans to, in effect, seal off the Strait of Hormuz. This could spike oil prices, depending on how outside producers (such as the OPEC countries) react. Higher oil prices tend to encourage the world to consider alternative energy sources, such as nuclear.
