The Trump administration is planning to provide Cold War-era plutonium from dismantled nuclear warheads to nuclear startups that want to convert it into reactor fuel, arguing it could help address a looming fuel shortage for advanced reactors. Critics warn the idea raises serious nonproliferation, security, cost, and technical concerns. The New York Times reports: The plan has generated debate and some unease among nonproliferation experts. If finalized, it would mark the first time the U.S. government has made weapons-grade plutonium available to private companies. The Energy Department has more than 50 tons of surplus plutonium left over from nuclear weapons programs, and the agency had previously been planning to dilute much of that material and bury it. Some of the nuclear start-ups trying to obtain that plutonium say that transforming the waste into fuel is a better way to dispose of it.

On Tuesday, the Energy Department said that it had selected five companies to enter into "advanced negotiations" to potentially receive some surplus plutonium. That includes Oklo, a California-based nuclear power company, which plans to partner with Newcleo, a European developer of advanced nuclear reactors. Using plutonium for fuel, Oklo and Newcleo said, could solve a looming problem: Energy firms want to build a new wave of nuclear reactors, but the United States can't yet make enough conventional fuel from uranium to supply the plants. Harvesting old plutonium stockpiles could provide a short-term fix. "A lack of fuel is one of the biggest choke points in expanding nuclear power right now," said Jacob DeWitte, the chief executive of Oklo, which is developing a novel type of small reactor intended to run on plutonium. "This will help us get more nuclear power online faster."

[...] The plan is not yet final, and companies will still have to negotiate with the federal government over how to secure and transfer the plutonium. In addition to Oklo, the Energy Department said it had also selected four other companies -- Standard Nuclear, Exodys Energy, SHINE Technologies and Flibe Energy -- to enter into advanced negotiations to receive the material under its Surplus Plutonium Utilization Program, which was established last year. The program "is anticipated to help companies unlock the next level of private funding to broaden domestic nuclear fuel supplies, spur innovation on American recycling technologies, and unlock private sector funding to fuel the nation's nuclear renaissance," said Michael Goff, the principal deputy assistant secretary of nuclear energy, in a statement.

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