Vallourec, supplier of premium tubular solutions for the energy industry, and Fervo Energy, the global pioneer of next-generation geothermal energy, have signed a five-year supply agreement worth up to US$800mn whereby Vallourec will act as Fervo’s exclusive supplier of U.S. manufactured tubular solutions and VAM connections through its distribution partner Sooner, Inc.
Vallourec will provide a wide range of premium tubular solutions engineered for the temperature conditions of next-generation geothermal wells, including its VAM high-torque semi-flush connections – originally developed for shale applications and now proven in geothermal environments.
The deal illustrates the potential for transferring and adapting technology and expertise from the oil and gas sector, also characterised by extreme high temperature environments, to the fast-growing geothermal sector. Ensuring long-term geothermal well integrity at high temperatures is a key challenge for geothermal developers.
The collaboration will establish a fully domestic supply chain for critical geothermal well infrastructure at a time when investment in next-generation geothermal has accelerated rapidly, driven by a rising demand for baseload, carbon-free power to support electrification and data centre expansion. Vallourec has in fact seen an increase in demand for its geothermal products increase more than three-fold.
The deal supports Fervo’s strategy to deploy repeatable GeoBlocks – standardised 50 MW units of geothermal energy, as it scales its operations. It follows Fervo’s signature of a supply deal with Turboden America for the supply of ORC turbines for up to 35 GeoBlocks, also designed to strengthen the US supply chain for geothermal development.
Philippe Guillemot, chairman of the Board of Directors and chief executive officer of Vallourec, commented, “Our model of low-carbon, vertically-integrated production hubs located close to our markets is paired with our strong focus on innovation and tailor-made technological solutions in making Vallourec a key strategic partner for customers like Fervo. We look forward to supporting the development of next-generation geothermal energy needed to power the rising electricity demands, in particular due to the hypergrowth of data centres in the United States of America.
Tim Latimer, chief executive officer of Fervo Energy added, “Delivering next-generation geothermal at scale requires precision, reliability, and strong collaboration across the supply chain. Vallourec brings deep expertise in manufacturing low-carbon, high-performance tubular solutions that will play a critical role in enabling the rapid buildout of GeoBlocks at Cape Station and beyond."