Arverne Group's 2024 Surge: Geothermal Growth and Lithium Ambitions Fuel Future Potential

Arverne Group’s 2024 Universal Registration Document paints a picture of a company in hyper-growth mode, leveraging its expertise in geothermal energy and lithium exploration to position itself as a key player in Europe’s energy transition. The document reveals a year of significant operational and financial milestones, alongside ambitious plans for scaling up its projects. But with a net loss of €11.1 million and a reliance on capital-intensive investments, investors must weigh the risks against the long-term potential.

Key Financial Highlights: Growth Amid Growing Pains

Arverne’s Gross Business Volume (GBV) surged to €17.3 million in 2024, a 45% increase from 2023, hitting the upper end of its target range. This growth was driven by high-margin deep drilling projects like the completion of the geothermal installation at Roissy Charles de Gaulle Airport and the expansion of subsidiary DrillHeat, which saw revenue jump 67% to €6 million.

However, the company reported a net loss of €11.1 million, a result of rapid scaling. Personnel expenses skyrocketed 55% to €20.3 million as Arverne doubled its workforce to 200 employees to support operational expansion. Capitalized production costs (€6.5 million) and financial expenses (€11.2 million) also contributed to the deficit.

Operational Momentum: The Drilling Rig, Subsurface Data, and Lithium Dreams

The €51.9 million CAPEX program in 2024 was a central pillar of Arverne’s strategy. Key allocations included:
- €22.6 million for the acquisition of its flagship B18 deep drilling rig (see image below), designed to handle urban and complex subsurface projects.
- €14.1 million to expand its 3D subsurface mapping to 410 km², making it France’s largest private owner of such data.
- €11.8 million for equipment and infrastructure, including a new logistics hub in Île-de-France.

These investments have already paid off. The B18 rig’s deployment reduced drilling costs by 20% in some projects, while the 3D mapping data has identified multiple geothermal and lithium-rich zones. The company now aims to advance its Alsace lithium project, which could produce 27,000 tons of lithium carbonate (LC) annually by 2031—a critical resource for EV batteries and renewable energy storage.

2025 Outlook: Scaling Up or Stumbling?

Arverne’s 2025 targets are aggressive. It forecasts €25–30 million in GBV (a 45–75% jump), driven by geothermal heat contracts and the completion of the Safran Aircraft Engines doublet project. The company also plans a €50 million CAPEX program for its lithium project, including a feasibility study and a pilot lithium extraction facility.

Longer term, the €2.4 billion investment plan through 2031 highlights Arverne’s vision to become a vertically integrated player in geothermal energy and lithium. However, execution risks are significant. Delays in regulatory approvals, lithium price volatility, and the high costs of pre-industrial phase activities (estimated at €50 million over 12–18 months) could strain finances.

Risks and Mitigants: Partnerships and Liquidity

Arverne’s balance sheet offers some reassurance. Its net cash position of €85.6 million as of December 2024, bolstered by its September 2023 IPO, provides a buffer for CAPEX and potential setbacks. Strategic partnerships, such as with tunneling giant Herrenknecht (which injected €4.4 million into subsidiary DrillDeep) and energy firm Equinor, add credibility to its projects.

Environmental and social governance (ESG) metrics also shine: 100% of employees completed code-of-conduct training, and projects like the Maisse logistics base emphasize local job creation and compliance with France’s energy transition goals.

Conclusion: A High-Reward, High-Risk Bet on Geothermal’s Future

Arverne Group is betting big on two trends: the demand for geothermal heat in urban centers and the lithium boom fueled by EV adoption. The 2024 results confirm its ability to execute on drilling and exploration but also expose vulnerabilities from rapid scaling.

The numbers tell a compelling story:
- Geothermal dominance: 98.7% of revenue from high-margin drilling and subsurface projects.
- Lithium potential: A 27,000-ton/year LC target by 2031 could make Arverne one of Europe’s top lithium producers.
- Financial flexibility: €85.6 million net cash and a €255 million asset base (up 14.8% year-over-year) provide resilience.

However, the path to profitability remains uncertain. The net loss in 2024, while manageable given its cash reserves, underscores the challenges of turning exploration into profit. Investors should monitor key milestones, such as the completion of the Alsace lithium feasibility study (by 2025) and the start of heat production contracts by 2026.

For risk-tolerant investors willing to back early-stage green energy and critical mineral plays, Arverne Group’s 2024 results are a strong start. But success hinges on executing its €2.4 billion roadmap without overextending, a tightrope walk that will define its future.