Long-term Agreement for Green Power

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

The fifteen-year power purchase agreement (PPA) provides for the supply of electricity from renewable energies to ST sites in Italy in the period from 2024 to 2038. This includes the two fabs in Agrate and Catania as well as several locations for research and development, design, sales and marketing.

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: »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.«