Next-Generation Geothermal Energy Boosted by Fervo and Vallourec Collaboration
Fervo Energy, which uses technology carried over from oil and gas drilling innovations to generate geothermal-based power, is funded to invest close to $2 billion in upcoming developments across the U.S.
One of those partners in carrying out its geothermal-to-electricity ambition will be French-based global tubing solutions firm Vallourec. Fervo Energy has signed Vallourec to a five-year supply agreement that could reach up to $800 million in contract value.
Vallourec will supply U.S.-made tubing engineered to handle temperature conditions of next-generation geothermal development, using the earth’s core to provide low-carbon, renewable heat and power. Fervo Energy itself has gained more than $1.5 billion in funding to roll out a project pipeline across the U.S.
Fervo’s deal for Vallourec tubing and VAM connections supply deal will run through distributor Sooner Inc., establishing a fully domestic supply chain for critical geothermal well infrastructure. All products will be developed, manufactured, and tested in the U.S. using Vallourec’s domestic industrial footprint.
“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,” Philippe Guillemot, chairman of the board and CEO of Vallourec, said in a statement. “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 States of America.”
Investment in next-generation geothermal technologies has grown almost 10-fold in the past eight years to more than $2 billion annually, according to the International Energy Agency’s January 2026 report. Conventional geothermal investment has topped $5 billion and should expand in the coming decade as new technology makes more geothermal sites feasible.
With their new long-term supply deal, 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.
“Delivering next-generation geothermal at scale requires precision, reliability, and strong collaboration across the supply chain,” Fervo Energy CEO Tim Latimer said. “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.”
Fervo’s Cape Station project in Utah is expected to be operational and deliver 100 MW of baseload power later this year, with the company hoping to expand capacity to 2 GW in the future.
The Cape Station plant will utilize enhanced geothermal production leveraging directional drilling—first utilized in oil and gas exploration and production—to drill horizontally in geothermal reservoirs underground. This should allow the company to drill multiple geothermal wells from a single location, according to reports.
Last month, TIME magazine named Fervo Energy as No. 1 in it and Statisica's list of America's Top Greentech Companies.
About the Author
Rod Walton, EnergyTech Managing Editor
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Rod Walton has spent 17 years covering the energy industry as a newspaper and trade journalist. He formerly was energy writer and business editor at the Tulsa World. Later, he spent six years covering the electricity power sector for Pennwell and Clarion Events. He joined Endeavor and EnergyTech in November 2021.
Walton earned his Bachelors degree in journalism from the University of Oklahoma. His career stops include the Moore American, Bartlesville Examiner-Enterprise, Wagoner Tribune and Tulsa World.
EnergyTech is focused on the mission critical and large-scale energy users and their sustainability and resiliency goals. These include the commercial and industrial sectors, as well as the military, universities, data centers and microgrids. The C&I sectors together account for close to 30 percent of greenhouse gas emissions in the U.S.
He was named Managing Editor for Microgrid Knowledge and EnergyTech starting July 1, 2023
Many large-scale energy users such as Fortune 500 companies, and mission-critical users such as military bases, universities, healthcare facilities, public safety and data centers, shifting their energy priorities to reach net-zero carbon goals within the coming decades. These include plans for renewable energy power purchase agreements, but also on-site resiliency projects such as microgrids, combined heat and power, rooftop solar, energy storage, digitalization and building efficiency upgrades.