Vallourec and Geostock accelerate underground hydrogen and CCUS storage solutions with new strategic partnership

Vallourec and Geostock have really boosted their strategic partnership, aiming to speed up underground hydrogen storage and carbon capture, utilisation, and storage (CCUS) solutions. The partnership pairs Vallourec’s recently certified Delphy vertical storage system with Geostock’s know-how in engineered subsurface caverns, creating a combined offering that caters to everything from small-scale to very large hydrogen storage needs.

According to Vallourec, Delphy is a ready-to-use, vertical setup designed specifically for compressed gaseous hydrogen. It can hold anywhere from 1 to 100 tonnes of hydrogen, and it’s engineered to take up way less space compared to traditional above-ground tanks. The company explains that the system uses hydrogen-resistant steel tubes, incorporates cutting-edge safety features, and is made up of modular components that can operate at pressures up to 500 bar. They also highlight that Delphy adheres to the European Pressure Equipment Directive and has been validated by independent bodies. A demonstrator, a prototype tested at Aulnoye-Aymeries in France, was part of the qualification process. Vallourec claims the design is pretty well suited for green hydrogen producers, industrial users, and heavy mobility sectors looking for compact, low-footprint storage options.

DNV, a well-known certification body, has technically qualified the Delphy concept, confirming its safety and practicality for integration into industrial hydrogen systems. They mention that this qualification is a step forward for commercial deployment, especially with the rising demand for flexible storage solutions that can handle the fluctuating nature of green hydrogen production. DNV also pointed out, referencing Vallourec’s announcements, that the company has signed memoranda of understanding with various project partners and is discussing roughly fifty projects , which could translate to about €2 billion in potential revenue.

On the other hand, Geostock offers complementary tools for larger-scale storage. The company specializes in mined lined rock caverns along with other underground options, including salt caverns and porous media. Geostock notes that its mined caverns are particularly good for storing high-pressure gaseous products and are capable of holding significantly bigger volumes than Delphy, often over 500 tonnes. Its engineered steel membrane liners are designed to ensure the product’s integrity and are adaptable to different geological conditions.

Both companies say their collaboration will cover aspects like well architecture, tubular solutions, and collaborative engineering for hydrogen and CO₂ injection. Vallourec will supply tubular products and contribute research on metal materials, while Geostock will bring its expertise in underground development to support civil engineering and the installation of Vallourec’s Delphy systems where needed. In essence, the goal is to connect surface and subsurface storage approaches, offering clients a full range of options, from small, modular units to extensive cavern complexes.

“This partnership really marks an important step forward in strengthening our collaboration with a leader in underground storage,” stated Vallourec Group Chairman and CEO Philippe Guillemot. “Together, with Geostock, we’re speeding up the development of the infrastructure needed to build an effective low-carbon energy value chain in hydrogen storage and CCUS.”

Pascal Baylocq, CEO of Geostock, added: “Partnering with a global leader in premium seamless tubes allows Geostock to expand its solutions for underground hydrogen storage in hard rock formations. This deal also lines up well with our goal of staying at the forefront of knowledge in this field. Vallourec’s specialization and research into metallic materials will be a valuable resource for Geostock as we explore various underground storage methods, whether in salt caverns, hard rocks, or porous media.”

For those planning energy systems and industrial projects, this combined approach tackles a bunch of practical challenges. For instance, Delphy’s small footprint reduces land use issues and can make local acceptance easier at industrial sites and ports. On the flip side, mined caverns offer economies of scale and are suited for long-term storage, which is perfect for seasonal balancing or large export hubs. The collaborative work on well design and tubing aims to minimize technical risks , especially where hydrogen interacts with underground formations or where CO₂ needs to be injected or stored.

Plus, the partnership has a specific focus on CCUS. Geostock’s portfolio involves underground solutions for storing carbon-free energy, as well as for integrating intermittent renewables. Vallourec’s expertise in high-performance tubular materials comes into play with wells and injection systems for CO₂. Industry data underscores how crucial tight coordination between surface engineering and subsurface technology is, particularly for CCUS projects, especially in regions planning integrated hydrogen and CO₂ value chains.

Everyone will be keeping a close eye on this development, especially stakeholders in the Gulf and project developers in the UAE. The country has big plans for hydrogen exports and large-scale CCUS pilots, all of which could benefit from a range of storage options. Based on their geology, salt caverns or mined rock caverns could offer pretty significant capacities, big enough to suit major projects. If geological or permitting challenges make caverns impractical, then modular solutions like Delphy could serve as on-site storage for industrial clusters or refueling hubs. For Emirati project planners, the possibility to combine modular surface setups with proven underground engineering might help speed up timelines and make permitting a bit easier.

The next hurdle, naturally, is moving toward commercial viability. Vallourec and Geostock need to show how their combined solutions perform across different climates and regulatory landscapes. While DNV’s qualification of Delphy pushes that forward, large-scale adoption will ultimately depend on project-level feasibility, permits, and whether costs remain competitive compared to other storage options. Both companies say they’ll be sharing research and technical developments to speed up deployment, and to help qualify wells and tubulars for the challenging conditions of underground hydrogen and CO₂ storage.

By bringing together a high-grade tubular manufacturer with a subsurface engineering specialist, the partnership aims to create a seamless path from production to long-term storage. And for policymakers and investors focused on the UAE’s climate tech goals, this arrangement signals a maturing market, one where modular surface systems and engineered underground storage can flexibly match project size and address regional constraints.

Source: Noah Wire Services