French specialist in seamless tubes, Vallourec, announced a potential contract worth $800 million over five years to support American company Fervo Energy in deploying geothermal energy in the United States, specifically for data centers.
Vallourec primarily produces for the oil industry but can leverage its expertise for other applications, such as geothermal energy, which generates electricity from underground heat, explained CEO Philippe Guillemot. Data centers, requiring a large amount of constant electricity to operate their servers, are particularly interested.
Fervo Energy’s “next-generation” geothermal technology aims to produce large quantities of carbon-free base electricity by harnessing heat from the earth’s rocks. Vallourec, in exclusive partnership with Fervo Energy for five years through its subsidiary Sooner Inc, will establish a supply chain based entirely in the United States for geothermal well infrastructure.
Anticipating a potential revenue of up to $800 million over the contract duration, Vallourec is focusing on expanding its geothermal product orders, aiming to allocate 10-15% of its EBITDA to new energy sources by 2030, including geothermal, hydrogen, biomass, and CCUS.
