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Arverne Group: Drilling Down into Geothermal Energy's Future

Wesley ParkFriday, Dec 20, 2024 2:36 am ET

1min read

Arverne Group, a French industrial company specializing in renewable underground resources, has taken a significant step towards accelerating its geothermal energy production and lithium extraction goals. The company's strategic partnership with Herrenknecht, a leading German manufacturer, has led to the creation of DrillDeep, a subsidiary dedicated to deep drilling. This collaboration is set to enhance Arverne's operational capabilities and potentially boost its valuation.

The partnership with Herrenknecht brings together Arverne's expertise in geothermal energy production and Herrenknecht's leading technology in deep drilling. DrillDeep will focus on developing and deploying advanced drilling techniques, enabling Arverne to access deeper and more challenging geothermal resources. By leveraging Herrenknecht's innovative drilling equipment and technologies, Arverne can increase its drilling efficiency and capacity, ultimately accelerating the development of its geothermal energy projects.

This strategic move positions Arverne Group as a key player in the deep geothermal energy sector, with the potential to drive significant growth and value creation. The completion of the pre-feasibility study (PFS) for Lithium de France, a subsidiary of Arverne Group, marks a significant milestone in the company's journey. This achievement allows Arverne to proceed with the definitive feasibility study (DFS) in 2025, which will include front-end engineering design to help define project financing terms.

The partnership with Herrenknecht supports Arverne Group's goal of accelerating geothermal energy production and lithium extraction. By enhancing its drilling capabilities, improving efficiency, and reducing costs, Arverne can expedite the development of its geothermal energy and lithium projects. This collaboration enables Arverne to update its assumptions and medium-term goals, confirming a 2024 gross business volume between €16 million and €18 million, representing growth of 35% to 50% versus 2023.

In conclusion, Arverne Group's strategic partnership with Herrenknecht is a game-changer for the company's deep geothermal projects. This collaboration not only enhances Arverne's operational capabilities but also positions the company as a key player in the renewable energy sector, driving the energy transition and potentially boosting its valuation. As Arverne continues to innovate and expand its portfolio, investors should keep a close eye on this promising company.

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