SLB’s Geothermal Dominance: A 2025 Analysis of Key Deals, Tech, and Strategy

Industry Adoption: SLB’s Calculated Shift from Geothermal Exploration to Execution

Between 2021 and 2024, SLB executed a foundational strategy, methodically repurposing its vast oil and gas expertise for the geothermal market. This period was characterized by broad exploration, establishing a diverse portfolio of activities to test commercial viability. The company launched specialized products like high-temperature cements (FlexSTONE™, ThermaSTONE™) and drilling fluids, which were deployed in over 100 wells, and formed initial partnerships to assess new markets, such as the MoU with Oman’s Ministry of Energy and Minerals. Concurrently, SLB’s subsidiary, Celsius Energy, piloted utility-scale heating and cooling networks in the U.S. with Eversource Energy, while its venture arm invested in adjacent technologies like direct lithium extraction (DLE) with EnergySource Minerals. This variety of applications—from power generation and district heating to critical mineral extraction—signaled a strategy to embed SLB’s technology across the entire potential value chain of geothermal energy.

The period from January 2025 to today marks a significant inflection point, shifting from capability-building to focused execution and commercial validation. The partnerships became more strategic and project-oriented. The collaboration with DEEP Earth Energy moved from technical reviews to developing Canada’s first ~30 MW next-generation geothermal facility, while the alliance with Google Cloud aims to standardize and accelerate the crucial, high-risk phase of resource identification. The most significant validation came in April 2025, when SLB became fully qualified to provide geothermal solutions to the U.S. Department of Defense (DoD) globally, opening a substantial and stable revenue stream. This, combined with the launch of geothermal power solutions for AI data centers, demonstrates a pivot toward high-value, mission-critical applications. The opportunity has crystallized from a broad market push into targeted, large-scale commercial deployments, positioning SLB to not just participate in but define the standards for the rapidly growing geothermal sector.

Table: SLB’s Strategic Investments in Geothermal and Adjacent Technologies

Table: SLB’s Geothermal Partnership Ecosystem

Geographic Expansion in SLB’s Geothermal Strategy

Between 2021 and 2024, SLB’s geothermal activities were globally dispersed and largely exploratory. The company established footholds in key regions to test technologies and assess market potential. In the USA, it focused on innovative applications, piloting a utility-scale geothermal network with Celsius Energy in Massachusetts and investing in direct lithium extraction in California. In Canada, its GeothermEx arm conducted a critical technical review for DEEP’s Saskatchewan project, while in Indonesia, it partnered with Star Energy on advanced fracture modeling. This period also saw SLB engage in national-level strategy development in the Middle East (Oman) and South Asia (Pakistan). This widespread footprint demonstrates a strategy of planting flags in diverse geological and market environments to build a global knowledge base and pipeline.

From 2025 onwards, the geographic focus has sharpened from exploration to execution in commercially strategic regions. Canada transformed from a site of technical review to the location of a flagship ~30 MW project with DEEP, marking a significant commercial commitment. Indonesia likewise evolved from a single modeling project to a broad technology deployment collaboration with Star Energy, targeting a major established geothermal market. The most significant shift is the global access gained through the U.S. Department of Defense qualification. This agreement positions SLB to deliver projects at DoD installations worldwide, turning the entire globe into a potential market with a single, high-value client. North America and Southeast Asia have clearly emerged as lead markets for project execution, while the global DoD contract represents a new, borderless commercial frontier.

Analyzing the Technology Maturity of SLB’s Geothermal Portfolio

In the 2021–2024 timeframe, SLB focused on adapting and commercializing its existing technology portfolio for geothermal applications. This involved moving core O&G products from pilot to proven commercial offerings. Specialized cementing systems (FlexSTONE™, ThermaSTONE™) and drilling fluids were successfully deployed and validated across over 100 geothermal wells, establishing them as commercial products. In parallel, SLB’s subsidiary, Celsius Energy, advanced its geothermal heating and cooling networks from a single pilot with Eversource in the U.S. to a scaling phase, backed by a €200 million EU grant for commercialization. Technologies like the Eclipse reservoir simulator were applied to de-risk projects, while investments in pre-commercial technologies like direct lithium extraction (EnergySource Minerals) represented strategic bets on future value streams. The key trend was the systematic validation of enabling technologies.

The period from 2025 to today demonstrates a shift from offering discrete products to delivering integrated, performance-driven solutions. Technology is now being deployed to solve specific, high-stakes commercial problems. For example, DrillOps™ Performance Insights are being used to optimize drilling for the DEEP project in Canada, moving from a product sale to a performance partnership. The collaboration with Google Cloud to create new resource identification tools represents an effort to digitally mature the earliest, riskiest phase of geothermal development. The launch of geothermal power solutions for data centers and the qualification to serve the U.S. DoD are powerful validation points, confirming that SLB’s integrated technology stack is mature enough for mission-critical, 24/7 baseload power applications. While Enhanced Geothermal Systems (EGS) remain in the scaled pilot phase due to high costs ($100-$240/MWh), SLB has positioned itself as the key technology leader focused on driving down those costs to achieve full commercial scale.

Table: SWOT Analysis of SLB’s Geothermal Business

Forward-Looking Insights: SLB’s Geothermal Strategy in the Year Ahead

The data from 2025 signals a clear acceleration in SLB’s geothermal strategy, moving decisively from building capabilities to deploying them in high-stakes commercial projects. For executives and investors tracking the energy transition, SLB’s actions provide a blueprint for how legacy energy giants can pivot to dominate new markets.

In the year ahead, market actors should pay close attention to three key signals. First, the announcement of specific project awards under the U.S. DoD qualification will be the ultimate validation of SLB’s strategy, translating a strategic win into tangible revenue and backlog. Second, the progress of the DEEP Earth Energy project in Canada will serve as a crucial global blueprint. Any milestones achieved in drilling efficiency or cost reduction will be heavily leveraged to de-risk and sell similar projects worldwide. Finally, the first tangible outputs from the Google Cloud collaboration—such as a new platform or toolset for resource identification—could fundamentally alter geothermal project economics by reducing exploration risk.

What’s gaining traction is the concept of geothermal as a premium, baseload power source for high-availability applications, evidenced by SLB’s new solutions for data centers. This niche is rapidly becoming a high-growth vertical. The integrated, one-stop-shop model, solidified by the Ormat partnership, is also gaining momentum and will likely become the industry standard for developing large-scale projects. SLB is no longer just a service provider; it is positioning itself as the central nervous system for the global geothermal industry, shaping its technology, standards, and commercial future. Understanding these moves is critical for any organization looking to compete or invest in the future of clean, reliable energy.

Frequently Asked Questions

What is the biggest change in SLB’s geothermal strategy since the start of 2025?
Since January 2025, SLB has shifted from a phase of broad exploration and capability-building to focused execution on large-scale commercial projects. This is demonstrated by the move from technical reviews to developing a ~30 MW power facility with DEEP Earth Energy, securing a global qualification with the U.S. Department of Defense for a stable revenue stream, and launching targeted solutions for high-value markets like AI data centers.

How is SLB addressing the high risk and cost of finding new geothermal resources?
SLB is tackling this challenge through a strategic collaboration with Google Cloud and Project Innerspace. The partnership aims to combine SLB’s vast subsurface data with Google’s AI technology to simplify and accelerate the process of identifying viable geothermal resources globally, thereby de-risking the expensive exploration phase for the entire industry.

Does SLB build the entire geothermal power plant itself? How does it offer a complete project solution?
SLB specializes in the subsurface aspects of geothermal, such as resource characterization, drilling, and well construction, but historically lacked in-house power plant technology. To resolve this, SLB formed a major strategic collaboration with Ormat Technologies in June 2024. This partnership creates a “one-stop-shop” solution by combining SLB’s well expertise with Ormat’s power plant technology, enabling them to deliver fully integrated projects.

Besides generating electricity, what other areas of geothermal is SLB involved in?
SLB is pursuing a diversified strategy across the geothermal value chain. Through its subsidiary, Celsius Energy, it is commercializing utility-scale geothermal heating and cooling networks. Additionally, SLB is investing in adjacent technologies like direct lithium extraction (DLE) through partnerships with companies like ILiAD Technologies and EnergySource Minerals, aiming to extract critical minerals from geothermal brines as a synergistic revenue stream.

Which new markets are most important for SLB’s geothermal business now?
The analysis shows a pivot toward high-value, mission-critical applications. Two key new markets are AI data centers, which require the kind of reliable, 24/7 baseload power that geothermal provides, and the U.S. Department of Defense (DoD). After becoming a qualified provider in April 2025, SLB gained access to a substantial and stable global market for providing energy to DoD installations worldwide.