ST signs long-term renewable power agreement

1 min read

STMicroelectronics and ERG, a European independent producer of energy from renewable sources, through its subsidiary ERG Power Generation, have signed a fifteen-year Power Purchase Agreement (PPA).

The agreement is for the supply of renewable energy to ST’s operations in Italy, over the 2024-2038 timeframe, where it 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.

Commenting Geoff West, EVP and Chief Procurement Officer, STMicroelectronics, said, “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.”

"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,” said Paolo Merli, Chief Executive Officer of ERG. “This agreement allows us to enhance, following the Partinico-Monreale wind farm, two additional repowering projects through energy sales mechanisms capable of stabilising revenues, in line with current market standards, ensuring the proper remuneration of invested capital”.