Electric-Rig Direct Lithium Extraction From Geothermal Brine: The Economics of Vercana Versus Ormat Vulcan Energy Resources is pursuing an integrated model that combines geothermal drilling, direct lithium extraction, renewable electricity and industrial heat. Through its Vercana subsidiary, the company is also using electric drilling equipment designed to support the development of its Lionheart project in Germany’s Upper Rhine Valley. The approach differs from the conventional geothermal model represented by Ormat Technologies, whose core business remains geothermal power generation, equipment, project development and energy storage rather than commercial lithium recovery from geothermal brine. The economic question is broader than whether an electric drilling rig costs less to operate than a diesel rig. The more important issue is whether electric drilling, geothermal energy and direct lithium extraction can create a more valuable integrated project than a conventional geotherm...
Vallourec + XGS Energy: The Tubular Alliance That Could Turn Next-Gen Geothermal Into a 3-GW Reality Across the Western U.S.
There are moments in the energy transition when a “press release” quietly reveals something far bigger than a partnership. It reveals a supply chain war being won before the market even realizes the battle has begun.
On January 28, 2026, Vallourec one of the world’s most dominant names in premium tubular solutions—announced a strategic supply chain partnership with XGS Energy, the next-generation geothermal developer building what may become one of the most aggressive geothermal project pipelines in North America: a 3-gigawatt commercial pipeline across the western United States.
And this isn’t a distant dream. This is happening now—because XGS is preparing to begin construction this year on its headline project: a 150 MW geothermal facility in New Mexico backed by Meta, delivering power to the Public Service Company of New Mexico (PNM) grid to support Meta’s data center operations.
In other words: geothermal is no longer pitching itself as “future baseload.” It is now signing contracts with hyperscalers who demand delivery dates.
Why This Partnership Matters (It’s Not Just “Equipment Supply”)
Geothermal has always been full of brilliant ideas.
But the difference between ideas and grid-scale reality is brutally simple:
Can you build it fast, reliably, repeatedly, and at scale?
That is where this Vallourec–XGS partnership lands like a hammer.
XGS is executing a multi-GW pipeline, and to do that, it must secure:
high-temperature tubular goods
engineering support
manufacturing reliability
long-term supply certainty
Because geothermal is not like solar or wind where components can be swapped casually.
If the wells are wrong, the project is wrong.
And tubulars are not a “minor detail.” They are foundational.
XGS Energy’s Big Claim: Geothermal Without Water Dependency
What makes XGS different—and why Vallourec’s involvement is such a signal—is XGS’s technology approach:
XGS is developing a solid-state, closed-loop geothermal system
That is designed to:
use thermally conductive materials
unlock energy “anywhere there is hot rock”
decouple geothermal production from natural water resources
reduce geological risk and expand geographic flexibility
This is huge, because traditional geothermal has historically been limited by:
water availability
permeability and fluid flow
narrow geological sweet spots
higher exploration risk
XGS is essentially pushing geothermal toward a new era:
repeatable geothermal infrastructure, not rare geothermal miracles.
Vallourec’s Role: The High-Temperature Backbone of Next-Gen Geothermal
Vallourec is not just “a supplier.”
Vallourec is one of the companies that understands the physics of heat, stress, and extreme well environments at an industrial level—because it has spent decades supporting:
harsh oil & gas wells
new generation power plants
extreme industrial applications
For next-generation geothermal, that expertise becomes priceless.
In this partnership, Vallourec will support XGS through:
engineering expertise
manufacturing capability
proven high-temperature tubular solutions
And one technology stands out like a crown jewel:
THERMOCASE® Vacuum Insulated Tubing (VIT)
This is designed to:
minimize thermal losses
increase heat exchange performance
improve long-term system reliability
That last point—reliability—is the word that hyperscalers, utilities, and financiers worship.
Because geothermal doesn’t win by being clean.
It wins by being:
clean + firm + dependable + scalable.
The Meta Factor: Why Data Centers Are Becoming Geothermal’s Best Customer
Meta backing a 150 MW geothermal project is not symbolic.
It’s a market signal.
Data centers need:
24/7 power
stable pricing
reliability
decarbonization that is real (not just offsets)
Solar + batteries is expensive at full 24/7 coverage.
Wind is variable.
Nuclear takes too long.
So the new race is for something that can deliver:
Clean, Round-the-Clock Power — on demand — at utility scale.
That is exactly how XGS describes its mission:
“Clean, Round-the-Clock Energy Everywhere, Forever.”
If XGS can deliver that at scale, it doesn’t just become a geothermal company.
It becomes a critical infrastructure provider for the AI era.
The Most Explosive Line in the Entire Announcement
XGS CEO Josh Prueher stated:
“Our near-term projects in New Mexico and California alone will make XGS one of the largest consumers of tubular goods in the world in 2027 and 2028.”
Read that again.
This is geothermal behaving like an industrial super-cycle.
Not pilot-scale.
Not “demonstration project.”
Not “we’ll see after 2035.”
But massive consumption, mass deployment, mass buildout.
And Vallourec is positioning itself right at the heart of that buildout.
Vallourec’s Strategic Play: New Energies Is No Longer a Side Hustle
For Vallourec, geothermal is not a PR add-on.
This partnership reinforces its ambition to become a leading supplier for advanced geothermal applications, under its New Energies portfolio.
Vallourec CEO Philippe Guillemot said:
“By combining our tubular expertise with XGS’s innovative technology, we are enabling meaningful progress toward decarbonizing the energy sector.”
Translation?
Vallourec is betting that the next trillion-dollar energy buildout will not only be transmission lines and batteries.
It will include:
deep drilling
advanced well design
high-performance tubing
thermal efficiency optimization
In short:
the oilfield supply chain is being re-deployed into the clean energy economy.**
And geothermal is one of the few clean technologies that can absorb that supply chain at scale.
What This Means for Geothermal (And Why the Industry Should Pay Attention)
This partnership reveals three uncomfortable truths:
1) Next-gen geothermal is shifting from technology risk → execution risk
The question is no longer “can it work?”
The question is “can you build it repeatedly, fast, and profitably?”
2) Supply chain is becoming a competitive weapon
If you can’t secure tubulars, rigs, crews, and engineering bandwidth,
you don’t have a project pipeline.
You have a PowerPoint pipeline.
3) Geothermal is entering the hyperscaler era
The biggest buyers of firm clean power are no longer just utilities.
They are:Vallourec
AI and cloud infrastructure operators
This is changing geothermal’s business model permanently.
Final Thought: This Is How Industries Are Built
When geothermal becomes industrial, the winners won’t just be the ones with the best science.
They’ll be the ones with:
supply chain dominance
manufacturing partnerships
bankable deployment models
engineering execution
That is why the Vallourec–XGS partnership matters.
Because it’s not just about tubes.
It’s about building a future where geothermal is no longer niche.
It becomes a global infrastructure class and it starts with projects like New Mexico, and pipelines like 3 GW across the western U.S.
The geothermal era is no longer coming. It is assembling.
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