Recently, Kaishan Group Co., Ltd. and Halliburton Energy Services, Inc. signed a Strategic Cooperation Memorandum in Loxley, Alabama. The two parties will combine their technological and resource advantages in the energy sector to further deepen their cooperation and jointly promote the innovation and application of low-carbon energy technologies.
According to the memorandum, Halliburton will leverage its global leading advantages in high-temperature high-pressure complex well construction, directional drilling, fracturing, and digital intelligent drilling technologies; while Kaishan will rely on its accumulated experience in modular geothermal power generation equipment manufacturing, integrated development of the entire geothermal industry chain, and green hydrogen and ammonia project development. The two parties plan to cooperate on high-efficiency, low-cost EGS drilling and power generation solutions.
In terms of specific cooperation directions, the two parties intend to actively seek cooperation opportunities in low-carbon and renewable energy projects, covering geothermal energy development, emerging new energy fields, as well as enhanced geothermal system (EGS) development, drilling optimization, integrated engineering implementation of geothermal projects, digital drilling and subsurface optimization technologies, green hydrogen production and green ammonia projects, and clean energy infrastructure. At the same time, the two parties will explore the deployment of modular geothermal power generation systems and study the feasibility of integrating Halliburton's drilling technologies with Kaishan's power generation equipment.
According to the cooperation arrangement, the two parties will exchange technical knowledge and best practices, evaluate potential project opportunities, and jointly consider project strategies and execution plans. Specific projects, cooperation mechanisms, and commercial terms will need to be further negotiated and confirmed in subsequent definitive agreements, which may include a Strategic Agreement and/or a Master Service Agreement.
The advancement of this strategic cooperation will further expand the development space for Kaishan's new energy business. Relying on Halliburton's technical strength and project execution network in the global energy service sector, Kaishan is expected to introduce advanced drilling technologies into its own geothermal development system, enhance its capability to independently develop EGS resources, and explore participation in emerging energy innovation projects worldwide.
Furthermore, the two parties also plan to leverage Halliburton's experience in global project execution and engineering management to extend the scope of cooperation from traditional geothermal power generation to high-value-added application fields, including the use of geothermal power to produce green hydrogen and green fuels.
Currently, this memorandum is a project cooperation arrangement, and the related work is still in the project development and technical validation stages. It is expected that it will not have a significant impact on Kaishan's operating performance for the fiscal year 2026.
