SAPMF Partners With Two Companies for Advanced Geothermal Energy

SaipemSpA SAPMF has taken a bold step toward energy transition by entering a Memorandum of Understanding (MoU) with Geolog, a leading company in the evaluation of geological formations and drilling solutions, and Ignis H2 Energy, a firm involved in geothermal resource acquisition and development.

The goal of this partnership is to develop geothermal technologies and carry out feasibility research to meet the growing demand for clean energy.

Insight Into SAPMF’s MoU

The MoU will augment Saipem’s research and development program, which provides innovative solutions for energy transition, including geothermal energy that utilizes the natural heat within the earth’s sphere.

The accord will focus on three main areas — advanced geothermal energy solutions, offshore geothermal energy, and conversion of old oil and gas wells. With its long-established track record in geothermal and offshore drilling, Saipem, which is an Italian oilfield services company, will lead the consortium for feasibility studies by assessing the technical solutions and identifying the technological gaps. Both Geolog and Ignis H2will contribute to the evaluation of geological formations, resource availability and drilling technologies.

Through this partnership, the companies are well-positioned to address the problem of difficulty in accessing geothermal energy. The companies are planning innovative advancements in technology to tap the energy from terrestrial heat sources, which lies unexplored due to accessibility challenges.

Looking Forward

The potential of geothermal energy still remains underutilized despite being a reliable source of clean energy. Saipem is committed to changing this by making technological innovations in the geothermal sector, which can help its clients achieve the target of net zero emissions.

SAPMF’s Zacks Rank

Currently, SAPMF carries a Zacks Rank #4 (Sell). Although the company is a leader in oilfield services through its technological know-how, there has been a slowdown in drilling activities across the oil and gas resources in the world. Lower drilling activities will likely lead to reduced demand for oil field service players like SAPMF. Other leading oilfield service companies that may also get hurt due to slowing drilling programs are Halliburton Company HAL, Baker Hughes Company BKR and Schlumberger Limited SLB. While Baker Hughes and Halliburton carry a Zacks Rank #3 (Hold) each, Schlumberger has a Zacks Rank of 4.

You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.

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