YOUNGSTOWN, Ohio – Vallourec, a leader in premium tubular solutions for the energy industry, and Fervo Energy, a geothermal energy provider, announced a five-year supply agreement to support deployment of geothermal energy across the United States.
The deal represents up to $800 million in potential revenue for Vallourec over the life of the contract, a news release states.
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. All products will be developed, manufactured and tested in the United States using Vallourec’s domestic industrial footprint.
The collaboration 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, the release states.
Vallourec will provide a range of tubular solutions engineered for the temperature conditions of next-generation geothermal wells, including its VAM high-torque semiflush connections – originally developed for shale applications and now proven in geothermal environments. Fervo’s and Vallourec’s technical teams will collaborate 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 – increasing more than fivefold since 2022, according to the International Energy Agency – driven by a rising demand for baseload, carbon-free power to support electrification and data center expansion. Vallourec has seen bookings for geothermal products increase more than threefold in 2025 compared with the prior two-year average, the release states.
“This record contract for our new energies segment demonstrates the full relevance of our strategy initiated in 2022,” said Philippe Guillemot, Vallourec CEO and board chairman. “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 States of America.”
Tim Latimer, Fervo Energy CEO, said delivering next-generation geothermal at scale requires precision, reliability and 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,” Latimer said. “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.”