Semiconductor manufacturer STMicroelectronics (ST) has signed a 10-year power purchase agreement (PPA) with Centrica Energy.

The agreement will see ST buy 61GWh of solar energy generated by a new solar farm in Italy.

ST has two high-volume semiconductor manufacturing sites in Italy, one in Agrate and a second in Catania. The company also has several R&D, design, sales, and marketing locations across the country.

The PPA will kick off in 2025 and will aid in ST's aim of sourcing 100 percent of its energy from renewable sources by 2027.

According to ST EVP and chief procurement officer Geoff West, it is ST's second PPA in Italy. The PPA will provide a "significant level of renewable energy" to ST's Italian operations.

Kristian Gjerløv-Juel, VP for renewable energy trading & optimization, Centrica, said: "Centrica Energy continues to expand its capabilities and through this collaboration, we will bring renewable energy to one of Europe’s biggest technology companies. This agreement is another example of how Centrica is developing powerful value propositions for partners and customers globally.”

In December 2023, the semiconductor firm signed a 15-year PPA with European energy company ERG for 250GWh of wind energy.

The Catania location also has on-site solar power installations.

STMicroelectronics is Europe’s largest semiconductor manufacturer, selling a range of products including integrated circuits, computer memory, microprocessors, microcontrollers, and transistors, serving more than 200,000 customers.

Centrica Energy currently has 16GW of capacity under contract in Europe, of which 80 percent is in renewable assets.