Fervo Energy, a developer of next‑generation geothermal power, and Vallourec, a global supplier of tubular solutions, have entered into a 5‑year supply agreement to support the large‑scale deployment of geothermal energy projects across the US.
The agreement represents up to $800 million in potential revenue for Vallourec over the contract term and establishes a domestic supply chain for key geothermal well components. Under the arrangement, Vallourec will serve as Fervo’s exclusive supplier of US‑manufactured tubular solutions and connections, delivered through Vallourec’s distribution partner, Sooner Inc. All products will be developed, manufactured, and tested within Vallourec’s US footprint.
The collaboration aligns with Fervo’s effort to deploy repeatable GeoBlocks—standardized 50‑MW geothermal units designed to support more consistent and scalable development. Establishing long‑term access to domestically produced drilling and completion components is expected to support more predictable project execution while limiting exposure to supply‑chain constraints.
Vallourec will supply a range of tubular products engineered to withstand the high‑temperature conditions associated with advanced geothermal wells, including its VAM high‑torque semiflush connections with engineering origins in shale drilling, now qualified for geothermal service.
The International Energy Agency’s analyses indicate that global investment activity in next‑generation geothermal has risen by several multiples since 2022 amid increased financing and early commercial deployments. Vallourec reported that its geothermal bookings in 2025 were more than three times higher than the average of the prior 2 years.
In a press release announcing the deal, Philippe Guillemot, chairman and CEO of Vallourec, said, “This record contract for our New Energies segment demonstrates the relevance of our vertically integrated, low‑carbon production model and our focus on innovation.”
Tim Latimer, CEO of Fervo Energy, highlighted the importance of supply‑chain reliability. “Delivering next‑generation geothermal at scale requires precision, reliability, and strong collaboration,” he said. “This agreement strengthens our domestic supply chain and supports American manufacturing as we expand GeoBlock deployment and deliver more reliable, carbon‑free baseload power to the grid.”