FERVO ENERGY AND VALLOUREC ANNOUNCE LONG-TERM SUPPLY AGREEMENT TO SCALE DOMESTIC GEOTHERMAL INFRASTRUCTURE
Five-year deal represents up to $800 million in potential revenue and establishes a fully domestic supply chain for next-generation geothermal development
Vallourec, a world leader in premium tubular solutions for the energy industry, and Fervo Energy, the global pioneer of next-generation geothermal energy, today announced a five-year supply agreement to support the scaled deployment of geothermal energy across the United States. This deal represents up to $800 million in potential revenue for Vallourec over the life of the contract.
Under the agreement, Vallourec will serve as Fervo’s exclusive supplier of U.S. manufactured tubular solutions and VAM® connections through its distribution partner Sooner, Inc., establishing a fully domestic supply chain for critical geothermal well infrastructure. All products will be developed, manufactured, and tested in the United States using Vallourec’s domestic industrial footprint.
The collaboration directly supports Fervo’s strategy to deploy repeatable GeoBlocks – standardized 50 MW units of geothermal energy. Securing long-term, domestic access to high-performance drilling components reduces supply chain risk, improves project execution timelines, and provides cost certainty as Fervo scales its operations.
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. Fervo and Vallourec’s technical teams will collaborate closely to provide field-based expertise, risk mitigation, and engineering support, backed by Vallourec’s R&D Center in Houston.
The agreement comes as investment in next-generation geothermal has accelerated rapidly – increasing more than fivefold since 2022 according to the IEA – driven by a rising demand for baseload, carbon-free power to support electrification and data center expansion. Vallourec has seen the momentum directly: bookings for geothermal products increased more than threefold in 2025 compared to the prior two-year average.
Philippe Guillemot, Chairman of the Board of Directors and Chief Executive Officer of Vallourec, commented: “This record contract for our New Energies segment demonstrates the full relevance of our strategy initiated in 2022. 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 centers in the United Statesof America.”
Tim Latimer, Chief Executive Officer of Fervo Energy said: “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. By securing U.S.-manufactured materials, this agreement strengthens our domestic supply chain, supports American manufacturing, and ensures critical infrastructure for geothermal is built here in the United States. It also helps ensure we can execute efficiently, with greater cost certainty, as we scale our operations and deliver more reliable, carbon-free geothermal power to the grid.”
