SLB’s Distributed Energy Strategy in 2025: From Geothermal to Edge AI

Industry Adoption: How SLB is Architecting the Future of Distributed Energy Systems

In the energy sector, SLB’s strategic pivot from a legacy oilfield services giant to a diversified energy technology leader is becoming increasingly clear, with its approach to distributed energy serving as a primary case study. An analysis of the company’s activities reveals a distinct two-phase evolution. Between 2021 and 2024, SLB’s strategy was rooted in portfolio construction and capability acquisition. This period was marked by foundational moves to secure access to key transition technologies through strategic partnerships and investments. Alliances with companies like EnerVenue (metal-hydrogen batteries), RayGen (solar and thermal storage), and the formation of the Genvia joint venture for clean hydrogen underscored a deliberate effort to build a toolkit for the energy transition. The focus was on entering high-potential, niche markets—such as geothermal through its GeothermEx business and CCUS via partnerships with Linde and Aker Carbon Capture—where its core subsurface and project management expertise could be a key differentiator.

Since the beginning of 2025, the strategy has visibly shifted from portfolio building to integrated deployment and digital optimization. The flurry of activity this year signals an inflection point where SLB is now connecting its disparate technology plays into a cohesive, market-facing offering. This is most evident in the aggressive push into digital enablement. Partnerships with ZEDEDA for edge AI and AIQ for agentic AI workflows are not just technology collaborations; they represent a fundamental thesis that the future of distributed energy will be won through intelligent, autonomous operations. This digital layer is being applied to tangible projects, such as the partnership with an independent energy company to deploy SLB’s OptiSite™ solution for AI-driven operations. Simultaneously, the company is executing its geothermal strategy through project-specific collaborations with DEEP Earth Energy in Canada and Star Energy in Asia. The variety of activities—from deploying solar in Nigerian healthcare facilities to providing comprehensive carbon storage solutions in the North Sea—demonstrates that SLB is moving beyond technology pilots to executing a multi-faceted, commercially-driven strategy to become an indispensable technology provider for decentralized energy systems.

Table: SLB’s Strategic Investments in Distributed Energy and Enabling Technologies

Table: SLB’s Key Partnerships and Collaborations in Distributed and New Energy

Geography and SLB’s Expanding Distributed Energy Footprint

SLB’s geographic strategy for distributed energy has matured from broad capability-building in established energy hubs to targeted, project-specific expansion into new frontiers. In the 2021-2024 period, activities were concentrated in regions with strong industrial bases and policy support. The Genvia hydrogen venture was rooted in France, the Aker CCUS investment was centered in Norway, and major industrial decarbonization partnerships with Linde and Aramco focused on the US, Europe, and the Middle East. These moves were about securing a foothold and developing scalable solutions in markets with existing infrastructure and demand.

The landscape in 2025 demonstrates a clear expansionary phase. SLB is now taking its proven capabilities into new territories to unlock first-mover advantages. The partnership with DEEP Earth Energy to pioneer Canada’s first geothermal power project is a landmark event, signaling a commitment to establishing new baseload renewable markets. Similarly, the collaboration with Star Energy Geothermal is explicitly aimed at accelerating development in Asia, a region with vast, untapped geothermal potential. The deployment of solar power in healthcare facilities across Nigeria represents a different vector of expansion, targeting energy access and resilience in emerging economies. This geographic diversification from developed industrial hubs to new renewable frontiers in Canada, Asia, and Africa shows SLB is actively moving to mainstream its distributed energy offerings on a global scale.

Technology Maturity in SLB’s New Energy Portfolio

The evolution of SLB’s distributed energy portfolio reveals a clear progression in technology maturity, moving from strategic bets on emerging tech to the integration and optimization of commercially viable solutions. Between 2021 and 2024, the focus was on accessing and de-risking technologies at the pilot-to-early-commercialization stage. The creation of the Genvia JV was designed to scale solid oxide electrolyzer technology from the lab to industry. Likewise, strategic investments in EnerVenue and RayGen represented calculated entries into the nascent but critical long-duration energy storage market. These were moves to secure a future position by nurturing technologies that were not yet at full commercial scale but held disruptive potential.

From 2025 onwards, the emphasis has pivoted sharply towards the deployment and digital enhancement of technologies that are already commercial or rapidly scaling. The launch of the Electris portfolio of electric well solutions and modular data center infrastructure are commercial product offerings, not pilot projects. The key shift is the application of a digital and AI layer—through partnerships with ZEDEDA, AIQ, and NVIDIA—to optimize existing, mature processes like subsurface characterization and drilling for geothermal and CCUS. The planned acquisition of RESMAN Energy Technology, a company with proven reservoir monitoring solutions, further validates this trend. SLB is no longer just incubating new technologies; it is acquiring and integrating mature, best-in-class solutions to accelerate the profitability and efficiency of its scaled New Energy business lines.

Table: SWOT Analysis of SLB’s Distributed Energy Strategy

Forward-Looking Insights and Summary

The data from 2025 signals that SLB has entered a new phase of execution and integration in its distributed energy strategy. The year ahead will be a critical test of this approach. Market observers should closely monitor the tangible progress of its flagship geothermal projects with DEEP Earth Energy in Canada and Star Energy in Asia, as these will serve as key proof points for its ability to convert partnerships into operational, revenue-generating assets. The digital pivot is the most significant signal; the real-world impact of its edge AI (ZEDEDA) and agentic AI (AIQ) collaborations on operational efficiency will be the ultimate measure of its new competitive advantage. If SLB can demonstrate quantifiable improvements in drilling, production, or grid management through this digital layer, it will validate its entire “bits and barrels” integration thesis.

Furthermore, the planned acquisition of RESMAN suggests a strategic refinement towards acquiring mature, bolt-on technologies rather than incubating early-stage ventures. Expect this trend to continue as SLB looks to accelerate profitability in its New Energy division. While the energy storage ventures with RayGen and EnerVenue are on a longer timeline, any announcements of first-of-a-kind commercial deployments will be a major catalyst. Ultimately, SLB is no longer just participating in the energy transition; it is attempting to build the technological backbone for it. The central question for the coming year is whether it can successfully weave its disparate investments in geothermal, storage, and digital into a cohesive and profitable business that can stand alongside, and eventually rival, its legacy oil and gas services.

Frequently Asked Questions

What is the main difference between SLB’s energy strategy before and after 2025?
Before 2025, SLB’s strategy focused on building its new energy portfolio through investments and partnerships to acquire key technologies (e.g., Genvia for hydrogen, Aker for CCUS). Since the start of 2025, the strategy has shifted to integrating these technologies into cohesive offerings and optimizing them with a digital and AI layer for commercial deployment.

Which key technology areas is SLB targeting for its distributed energy future?
SLB’s strategy targets several key areas, including geothermal energy (via its GeothermEx business and partnerships with DEEP Earth Energy), Carbon Capture, Utilization, and Storage (CCUS), clean hydrogen production (through its Genvia and John Cockerill ventures), and long-duration energy storage with companies like EnerVenue (metal-hydrogen batteries) and RayGen (solar and thermal storage).

How is SLB using digital technology and AI in its new energy strategy?
SLB is aggressively deploying a ‘digital layer’ to optimize its energy solutions. This involves partnerships with companies like ZEDEDA for edge AI and AIQ for agentic AI workflows. The goal is to enable intelligent, autonomous operations that improve the efficiency, reliability, and profitability of distributed energy assets, as seen with its OptiSite™ solution.

Where is SLB expanding its new energy projects geographically?
After initially focusing on established industrial hubs in Europe and the Middle East, SLB is now expanding into new regions to secure first-mover advantages. Key 2025 projects include pioneering geothermal power in Canada (with DEEP Earth Energy), accelerating geothermal development in Asia (with Star Energy), and deploying distributed solar power in Nigeria.

What are the primary risks or challenges to SLB’s new distributed energy strategy?
According to the analysis, the main risk has shifted from external market competition to internal execution risk. The primary challenges are successfully integrating its complex and diverse portfolio of technologies and partnerships into a cohesive, profitable business. The success of the strategy now depends on delivering on its ambitious, large-scale projects like the Northern Endurance CCS contract.