STMicroelectronics and ERG finalise renewable energy supply deal
STMicroelectronics, a global semiconductor company, and ERG, a prominent European independent energy producer from renewable sources, through its subsidiary ERG Power Generation, have announced a fifteen-year Power Purchase Agreement (PPA) for the supply of renewable energy to its operations in Italy from 2024 to 2038.
In Italy, ST operates two high-volume semiconductor manufacturing sites in Agrate and Catania, along with multiple R&D, design, sales, and marketing sites.
The agreement involves the sale by ERG of approximately 250GWh of renewable energy per year, totalling 3.75TWh over 15 years, produced by the Sicilian wind farms of Camporeale near Palermo and Mineo-Militello-Vizzini near Catania. These are repowering projects, upgraded with modern technologies for enhanced efficiency and significantly higher power generation, boasting a total installed capacity of 151.4MW.
Geoff West, EVP and Chief Procurement Officer at STMicroelectronics, stated: “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 decarbonising 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 stabilising revenues, in line with current market standards, ensuring the proper remuneration of invested capital.”
STMicroelectronics received support from its PPA advisory partners act renewable GmbH, a renewable energy consultancy for multinational corporates, Pexapark AG, a renewables market intelligence, software and advisory firm, and Parola Associati, external legal counsel.