Vallourec and Fervo Energy have announced a landmark five-year supply agreement to accelerate the deployment of next-generation geothermal energy across the United States. The contract, which could generate up to $800 million in revenue for Vallourec, establishes a fully domestic supply chain for critical well infrastructure.
Under the terms of the deal, Vallourec will serve as the exclusive provider of US-manufactured tubular solutions and VAM® connections for Fervo’s projects. This partnership supports Fervo’s “GeoBlock” strategy—standardised 50 MW units designed to scale geothermal power rapidly. By securing a long-term domestic supply, Fervo aims to mitigate supply chain risks and ensure cost certainty as it expands operations at its Cape Station site and beyond.
The agreement highlights the rapid acceleration of the geothermal sector, with industry investment increasing fivefold since 2022. This growth is largely driven by the urgent demand for reliable, carbon-free baseload power to support the expansion of data centres and national electrification.
“This record contract for our New Energies segment demonstrates the full relevance of our strategy initiated in 2022,” said Philippe Guillemot, Chairman and CEO of Vallourec. “Our model of low-carbon, vertically-integrated production hubs located close to our markets makes Vallourec a key strategic partner for customers like Fervo.”
Tim Latimer, CEO of Fervo Energy, emphasised the importance of domestic reliability. “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,” Latimer stated.
