STMicroelectronics and Engie have signed a 21-year Power Purchase Agreement (PPA) to support STMicroelectronics' decarbonization goals across its operations.

The agreement will provide 50GWh of energy annually from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia. The solar farm will be operated by BKH Solar Sdn Bhd, an entity jointly established by Engie and Conextone Energy, a Malysian-based renewable developer.

The PPA will commence in 2025 when the project reaches operational status.

Geoff West, chief procurement officer of STMicroelectronics, commented: “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 percent renewable energy by 2027.”

The agreement was undertaken under the Corporate Green Power Program introduced by the Malaysian Single Buyer in 2023.

The PPA represents the first STMicroelectronics signed in the Asian market. Over the past year, it has signed two PPAs across Europe to support its semiconductor manufacturing business.

In April, it signed a 10-year PPA with Centrica Energy, under which it will purchase 61GWh of solar energy generated by a new solar farm in Italy.

This followed a deal in December 2023, where the firm signed a 15-year PPA with ERG, providing approximately 250 GWh of wind energy to power its Italian operations, which includes two semiconductor manufacturing sites near Milan and Catania.

Engie signed several PPAs in the data center sector over 2024, with most of its deals within the US sector.

Last month, it signed a PPA with Google to supply energy from its 350MW Chillingham solar project in Bell County, Texas.

The PPA is Google's fourth this year in the Texan market, following agreements with Elawan Energy, X-Elio, and SB Energy for a combined 1.1GW of contracted power.