French pipe manufacturer Vallourec has announced it has signed a five-year supply agreement with US geothermal company Fervo Energy to support large-scale deployment of geothermal energy across the US. Under the agreement, Vallourec will supply tubular solutions to Fervo Energy for five years, with potential contract revenue of up to $800 million.
As part of the agreement, Vallourec will serve as the exclusive supplier of American-made tubular solutions and VAM® connections for high temperature geothermal environments through its distribution partner Sooner, Inc. All products will be developed, manufactured and tested in the USA, creating a fully domestic supply chain for geothermal well infrastructure.
Supporting the Deployment of Standardized Geothermal Plants
The collaboration will support Fervo Energy's strategy to deploy standardized geothermal plants, known as GeoBlocks, each with a capacity of 50 MW.
Ensuring long-term Access to drilling components is expected to:
- Reduce supply chain risks
- Improve project schedules
- Provide cost certainty at scale of operations.
The companies will also collaborate on design, field expertise and risk mitigation with the support of a research and development center Vallurek in Houston
Strategic importance for the energy transition
The partnership reflects growing momentum in geothermal
