STMicroelectronics, a leading European semiconductor manufacturer, has signed a 15-year Power Purchase Agreement (PPA) with TotalEnergies. This deal will see TotalEnergies supply 1.5TWh of renewable energy to power STMicroelectronics’ operations in France. The agreement represents a significant step forward in the company’s commitment to sustainability and energy efficiency.
Renewable Energy Supply from Wind and Solar Farms
The renewable energy provided under the PPA will come from two recently built wind and solar farms in France. These farms have a combined capacity of 75MW, contributing to the growing trend of companies adopting renewable energy sources. Starting in 2025, STMicroelectronics will utilize the energy to support its research and development (R&D), design, sales, marketing, and large-volume chip manufacturing operations.
Sophie Chevalier, Senior Vice President of Flexible Power & Integration at TotalEnergies, expressed enthusiasm about the deal, noting the company’s ability to offer clean, firm power solutions that meet specific customer needs.
Structuring the PPA for Baseload Electricity
One key aspect of this PPA is its ability to transform intermittent renewable energy production into a steady, reliable electricity supply. This solution will allow STMicroelectronics to rely on a constant flow of energy, essential for the continuous operation of its critical facilities.
Geoff West, Chief Procurement Officer at STMicroelectronics, emphasized the importance of this renewable energy agreement in supporting the company’s operations in France, helping to meet the growing demand for sustainable energy in the tech sector.
Additional PPA Agreements by STMicroelectronics
This new agreement with TotalEnergies is part of STMicroelectronics’ broader strategy to secure renewable energy contracts globally. In November 2024, the company signed a 21-year PPA with Engie in Malaysia, which will begin in 2025 and provide 50GWh annually from a solar farm. Earlier in 2024, STMicroelectronics also signed a 10-year PPA with Centrica Energy for 61GWh of solar energy from a new solar farm in Italy.
Strengthening Sustainability in Semiconductor Manufacturing
STMicroelectronics’ long-term PPAs are a clear indication of the semiconductor industry’s shift toward more sustainable energy practices. With these contracts, the company is not only securing reliable energy but also advancing its sustainability goals by reducing carbon emissions and increasing its reliance on renewable energy sources.
FAQ Section
1. What is the total duration of STMicroelectronics’ PPA with TotalEnergies?
The agreement between STMicroelectronics and TotalEnergies is set to last for 15 years, providing a steady supply of renewable energy for STMicroelectronics’ operations in France.
2. How much renewable energy will TotalEnergies supply to STMicroelectronics under the agreement?
TotalEnergies will supply a total of 1.5TWh of renewable energy over the course of the 15-year agreement.
3. Where will the renewable energy for STMicroelectronics’ French operations come from?
The renewable energy will be sourced from two newly constructed wind and solar farms in France, with a combined capacity of 75MW.
4. What other renewable energy agreements has STMicroelectronics signed recently?
In addition to the PPA with TotalEnergies, STMicroelectronics has signed a 21-year PPA with Engie in Malaysia and a 10-year PPA with Centrica Energy in Italy, both securing additional renewable energy supplies for their global operations.
5. How will this PPA impact STMicroelectronics’ operations in France?
The PPA will support STMicroelectronics’ operations across R&D, design, sales, marketing, and chip manufacturing, ensuring a reliable and sustainable energy supply for its facilities in France.
