Arverne Group's Governance Overhaul Positions It as a Geothermal Powerhouse

The European Union's push for energy sovereignty and decarbonization has created a golden opportunity for companies capable of harnessing renewable underground resources. Among them, Arverne Group, a French industrial firm specializing in geothermal energy and lithium extraction, is undergoing a governance overhaul that could accelerate its rise as a leader in these high-potential sectors. By restructuring its board committees and appointing executives with deep expertise in ESG and risk management, Arverne is aligning its governance with its ambitious strategic goals: dominating France's geothermal market and securing a foothold in the critical lithium supply chain.

A Governance Framework Built for Geothermal Ambitions

Arverne's recent restructuring of its Board of Directors' committees reflects a deliberate shift toward specialized oversight tailored to its energy transition mission. Three key committees now drive strategy, risk management, and talent development:

1. Strategy & CSR Committee:
2. Focus: Aligns geothermal and lithium projects with France's energy sovereignty goals.
3. Leadership: Chaired by Xavier Caïtucoli, this committee includes representatives from Renault SAS and ADEME Investissement, ensuring expertise in industrial innovation and environmental policy.

4. Impact: Directs investments toward geothermal heat networks and lithium extraction projects, such as the Schwabwiller drilling initiative (a joint venture with Lithium de France) targeting 80 GWh/year of heat and lithium byproducts.

5. Audit & Risk Committee:

6. Focus: Manages regulatory and operational risks, including permit delays and lithium extraction costs.
7. Leadership: Led by Françoise Malrieu, an independent director with financial oversight experience, this committee now integrates risk management into its mandate.

8. Impact: Streamlines compliance with France's updated geothermal policies, such as the June 2025 rule raising the regulatory threshold for surface geothermal projects from 0.5 MW to 2 MW—a move that reduces bureaucratic hurdles for Arverne's projects.

9. Nominations & Remuneration Committee:

10. Focus: Ensures board diversity and aligns executive incentives with long-term ESG targets.
11. Leadership: Colette Lewiner chairs this committee, emphasizing diversity and expertise in renewable energy.
12. Impact: Supported the appointment of Thierry Trouyet as Deputy CEO in January 2025. Trouyet, a seasoned executive with a track record in scaling high-growth firms, brings critical expertise in project execution and ESG integration.

Strategic Momentum and Operational Readiness

At its June 2025 Combined General Meeting, shareholders overwhelmingly approved 36 resolutions, including funding for the CDG Airport geothermal doublet (1,800-meter deep) and the E.Leclerc Frouard supermarket geothermal system (53 shallow wells). These projects validate Arverne's technical capabilities and underscore its focus on commercializing geothermal solutions across sectors. The meeting also highlighted the company's alignment with French government priorities:

• Policy Tailwinds: The government's ETIncelles program (launched in May 2025) provides Arverne with streamlined administrative support, critical for scaling projects.
• Lithium Synergies: Arverne's lithium extraction via Direct Lithium Extraction (DLE) technology at Schwabwiller reduces France's reliance on imported lithium—a strategic asset as electric vehicle adoption accelerates.

The Investment Case: Governance as a Catalyst

Arverne's governance reforms and strategic execution signal to investors that it is prepared to capitalize on two key trends:
1. Geothermal's Rise in the EU Energy Mix: The EU aims to triple geothermal capacity by 2030, and France's policy shifts (e.g., tax breaks for geothermal over fossil fuels) are creating a favorable market.
2. Lithium's Strategic Importance: As Europe seeks to control its EV supply chain, Arverne's low-carbon lithium projects position it to supply battery manufacturers like Renault (a shareholder via its board representative).

Risks Remain, but Governance Mitigates Them:
- Execution Risks: Permit delays and lithium cost overruns could stall projects.
- Mitigation: Trouyet's leadership, government grants (e.g., €50M 2025 investment plan), and a diversified revenue stream (heat sales + lithium) reduce dependency on any single project.

Conclusion: A Play on Decarbonization with Governance Credibility

Arverne Group's governance overhaul is more than structural—it's a strategic move to embed ESG and risk management into every decision. With shareholder support, policy tailwinds, and projects like Schwabwiller nearing execution, the company is well-positioned to capitalize on Europe's energy transition. For investors seeking exposure to geothermal and lithium's growth, Arverne offers a compelling mix of governance rigor and operational readiness.

Investment Advice:
- Buy: For investors with a 3–5 year horizon, Arverne's alignment with EU decarbonization goals and its governance-driven execution make it a strong candidate.
- Watch: Monitor Q3 2025 milestones, including CDG Airport's drilling completion and lithium resource validation at Schwabwiller. Positive outcomes could catalyze institutional investor interest.

In a sector where execution is as critical as innovation, Arverne's governance overhaul may prove to be its most powerful renewable resource.