Vallourec Focuses on Geothermal Energy to Contribute to New Energies EBITDA Goal of 10–15% by 2030
Vallourec is organizing a seminar on geothermal energy on Monday, positioning this decarbonized energy at the heart of its New Energies portfolio. The group aims for its New Energies division to represent 10–15% of EBITDA by 2030, with geothermal energy expected to contribute significantly to this goal by leveraging the acceleration in demand for low-carbon electricity.
Geothermal Energy: A Pillar of the New Energies Strategy
Vallourec positions geothermal energy as a major strategic component of its New Energies portfolio, initiated in 2022. The group intends to capitalize on the accelerating global demand for clean and sustainable electricity, driven by artificial intelligence data centers, the electrification of transport and industry. This strategic focus supports the group's ambition to achieve a New Energies contribution to EBITDA of 10–15% by 2030. Vallourec highlights that the geothermal segment offers conditions of extreme temperature and extended lifespan compared to the oil and gas sectors, where the group has consolidated its expertise over decades.
An Addressable Market Estimated at 400,000 Tons by 2030
Vallourec estimates its addressable market in geothermal energy to be around 400,000 tons at the end of the decade, a volume equivalent to the size of the high-end seamless tube markets in South America or Africa today. This opportunity covers conventional geothermal applications and next-generation technologies. The group emphasizes its research and development capabilities and its geographic presence to serve advanced geothermal projects. Agreements concluded this year with Fervo Energy and XGS Energy attest to the commercial validation of this direction with major developers of next-generation geothermal projects.
Technical Skills Mobilized for Demanding Applications
Vallourec positions its high-end tubular solutions as a key element to enable economies of scale and cost reductions in emerging geothermal technologies. The group intends to capitalize on its engineering capabilities, testing facilities, and expertise acquired in extreme environments of the traditional energy sector to design and provide products suited to geothermal conditions.
