STMicroelectronics and ENGIE sign 21-year contract for the supply of energy
Both companies agree on a long term contract for the supply of electricity produced from renewable sources in Malaysia, where ST operates a large-volume test and assembly site. The Power Purchase Agreement (PPA) will support the 2027 carbon neutrality and 100% renewable energy sourcing targets of STMicroelectronics.
STMicroelectronics, a global semiconductor company serving customers across the spectrum of electronics applications, announced the PPA with BKH Solar, an entity jointly established by ENGIE Renewable SEA, a renowned corporation in low-carbon energy and services, and Conextone Energy, a rapidly emerging solar energy developer in Malaysia. The agreement will facilitate the supply of approximately 50 GWh of renewable energy annually from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia. This long-term agreement is undertaken under the Corporate Green Power Program introduced by the Malaysian Single Buyer in 2023.
Geoff West, EVP and Chief Procurement Officer, STMicroelectronics, comments: “This long-term power purchasing agreement in Malaysia, ST’s first one in Asia, marks yet another important step towards ST’s goal of becoming carbon neutral in its operations (Scope 1 and 2 emissions, and partially scope 3) by 2027, including the sourcing of 100% renewable energy by 2027. PPAs will play a major role in our transition. Starting in 2025, this PPA with ENGIE will provide a significant level of renewable energy for ST’s operations in our high-volume test and assembly site in Muar, Johor, Malaysia.”
Amit Jain, Managing Director India & Southeast Asia, ENGIE, adds: “ENGIE is delighted to join forces with STMicroelectronics in the global transition towards sustainable energy solutions. By supplying approximately 50 GWh of renewable energy annually from our new solar PV 30 MW project in Malaysia, we are proudly contributing to ST’s transition towards 100% renewable sourcing. This partnership with ST demonstrates our commitment to providing green, clean and reliable energy to our clients.”
ST’s high-volume test and assembly site located in Muar, Johor, has over 4,700 employees supporting multiple technologies and products, including high reliability applications for automotive customers. The company also operates support functions out of Penang and Kuala Lumpur.
About STMicroelectronics
The company has over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. As an integrated device manufacturer, they work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Their technologies focus on enabling smarter mobility, more efficient power and energy management, and the wide-scale deployment of cloud-connected autonomous things.
About ENGIE
They are a global reference in low-carbon energy and services. With its 97,000 employees, clients, partners and stakeholders, the group strives every day to accelerate the transition towards a carbon-neutral economy, through reduced energy consumption and more environmentally friendly solutions. Inspired by its purpose statement, ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its clients. The turnover in 2023 was €82.6 billion.
Source: STMicroelectronics
Caption: The solar farm is expecting to produce approximately 50 GWh annually and contributes in large part to the goal of carbon neutrality (Image: STMicroelectronics).