STMicroelectronics (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, and ERG, a leading European independent producer of energy from renewable sources, through its subsidiary ERG Power Generation, announced today that they have signed a fifteen-year Power Purchase Agreement (PPA) for the supply of renewable energy to its operations in Italy over the 2024-2038 timeframe. In Italy, ST operates two high-volume semiconductor manufacturing sites in Agrate (near Milan) and Catania as well as multiple R&D, design, and sales and marketing sites.
The agreement is based on the sale by ERG of approximately 250 GWh of renewable energy per year, equivalent to a total volume of 3.75 TWh over 15 years, produced by the Sicilian wind farms of Camporeale near Palermo and Mineo-Militello-Vizzini near Catania. Both are repowering projects – upgraded with state-of-the art technologies for better efficiency and significantly higher power generation with a total installed capacity of 151.4 MW.
Geoff West, EVP and Chief Procurement Officer, STMicroelectronics, commented: “This agreement 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 2024, this PPA with ERG will provide a significant level of renewable energy for ST’s operations in Italy, which includes R&D, design, sales and marketing and large-volume chip manufacturing.”
Paolo Merli, Chief Executive Officer of ERG commented: “We are pleased with this agreement with STMicroelectronics, a leading global technology operator committed, like ERG, to decarbonizing the planet through the use of renewable energy in its industrial processes. This agreement allows us to enhance, following the Partinico-Monreale wind farm, two additional repowering projects through energy sales mechanisms capable of stabilizing revenues, in line with current market standards, ensuring the proper remuneration of invested capital”.
More information about ST’s energy and climate change commitments is available here.
STMicroelectronics was supported by its PPA advisory partners act renewable GmbH, renewable energy consultancy to multinational corporates, Pexapark AG, a renewables market intelligence, software and advisory company, and Parola Associati, external legal counsel.
