STMicroelectronics has announced it has signed a 21-year PPA with ENGIE to receive renewable energy from a new solar farm in Malaysia.
Almost every organisation is consistently striving to achieve its sustainability goals and craft an effective strategy for a better tomorrow.
However, this journey can often seem like a monumental undertaking.
During this immense journey, renewable energy agreements have emerged as a viable solution to adopt to reach a sustainable future.
By embracing this approach, organisations can ensure long-term cost stability, support renewable infrastructure development and make significant strides toward achieving sustainable goals.
In the transition to a low-carbon economy, renewable energy agreements are essential to take on to reduce our dependence on fossil fuel markets and enhance energy security.
Semiconductor manufacturing company STMicroelectronics has announced that it has signed a 21-year Power Purchase Agreement (PPA) with ENGIE.
In this agreement, ST will receive renewable energy from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia.
Starting in 2025, the agreement will help propel ST’s energy commitments and climate change goals.
Meet STMicroelectronics
STMicroelectronics is an international semiconductor company that creates a range of technologies, including smart power products, touchscreen controllers, low-power connectivity solutions and microchips.
ST’s work is driven by three core values — people, integrity and excellence.
Sustainability has been at the forefront of its work for more than 30 years and continues to steer its relationships with employees, partners and customers, as well as many of its business decisions.
To ensure this, 100% of ST’s new products go through its eco-design process, spotlighting its driven dedication to crafting a better tomorrow.
The organisation’s recent partnership with BKH Solar Sdn Bhd — a body comprised of an emerging solar energy developer in Malaysia, Conextone Energy Sdn Bhd, and ENGIE Renewable SEA Pte ltd (ENGIE) — continues to highlight ST’s commitment to a sustainable future.
ST’s energy commitments
Throughout its work, ST remains committed to taking significant steps to help minimise the consequences its activities have on the trajectory of climate change.
By 2027, the organisation aims to have reached carbon neutrality.
In 2020, ST developed a comprehensive carbon neutrality programme to help catalyse their efforts in mitigating climate change.
This programme includes its goal of reaching the sourcing of 100% renewable energy by 2027. Alongside it is a detailed strategy that lays out the reduction of emissions from business travel, employee commuting and product transportation, as well as an intermediate milestone to be achieved by 2025 that is entirely compliant with the 1.5°C scenario in the Paris Agreement.
Since 2018, ST has made incredible progress with its climate ambitions — reducing its Scope 1 and 2 emissions by 40%.
Geoff West, EVP and Chief Procurement Officer, STMicroelectronics, explains: “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% renewable energy by 2027.
“PPAs will play a major role in our transition. Starting in 2025, this PPA with ENGIE will provide a significant level of renewable energy for ST’s operations in our high-volume test and assembly site in Muar, Johor, Malaysia.”
STMICROELECTRIC’S CARBON NEUTRALITY PROGRAM CONSISTS OF FIVE MAIN WORKSTREAMS
- 1. Reduce direct emissions
- 2. Invest in energy savings
- 3. Use renewable energies
- 4. Minimise indirect emissions
- 5. Offset remaining emissions
The future
The agreement between STMicroelectronics and ENGIE not only highlights the organisations’ commitment to mitigating the impacts of climate change but also their ability to craft innovative solutions for economic growth that do not harm our environment.
By utilising the opportunities green energy creates, the pair of organisations set a benchmark of excellence for others to follow in integrating renewable energy and showcasing corporate responsibility.
Amit Jain, Managing Director India & Southeast Asia, ENGIE explains: “ENGIE is delighted to join forces with STMicroelectronics in the global transition towards sustainable energy solutions.
“By supplying approximately 50GWh of renewable energy annually from our new solar PV 30MW project in Malaysia, we are proudly contributing to ST’s transition towards 100% renewable sourcing.
“This partnership with ST demonstrates our commitment to providing green, clean and reliable energy to our clients.”
