AltC Acquisition Corporation (NYSE: ALCC) stock is currently observing a substantial uptick of 5.92% during the pre-market session, with shares valued at $17.00. In the previous trading session, AltC’s stock saw a notable increase of 22.52%, concluding at $16.05. The surge in ALCC shares can be attributed to a significant collaboration deal by its merger sub.
AltC (ALCC) divulged that Oklo, a company in the process of merging with ALCC, has reached an agreement with Diamondback Energy to collaborate on a long-term Power Purchase Agreement (PPA). Diamondback Energy stands as the largest independent producer situated in the shale-oil region.
The official business combination agreement between Oklo and AltC was signed last year. The combined company will be listed on the New York Stock Exchange with the ticker “OKLO.” Diamondback has signed a Letter of plan (LOI) outlining its plan to enter into a 20-year PPA with Oklo.
With the help of Oklo’s Aurora powerhouses, this proposed partnership seeks to supply Diamondback’s activities in the Permian Basin with dependable, emission-free electricity. As per the LOI terms, Oklo plans to license, construct, and operate powerhouses capable of generating 50 MW of electric power for Diamondback E&P LLC, a wholly-owned subsidiary of Diamondback located near Midland, Texas.
The LOI also presents provisions for renewing and extending the potential PPA for an additional 20-year period. Given Oklo’s design of powerhouses intended to operate for 40 years and its business model encompassing design-build-own-operate, prospective clients such as Diamondback are poised to access power seamlessly, devoid of complex ownership issues or other capital requisites.
By furnishing a cost-effective, dependable, and emission-free energy source, Oklo is positioned to cater to the escalating energy demands of entities like Diamondback. The collaboration between Oklo and Diamondback signifies a significant stride towards emission reductions and fortifying national energy security by ensuring dependable access to electricity for domestic energy operations.
