For its Malaysia facility, STMicroelectronics powers up sustainability with 21-year solar deal with ENGIE Renewable, driving its goal to go carbon-neutral and 100% green by 2027.
Semicon giant STMicroelectronics has signed a 21-year power purchase agreement (PPA) with BKH Solar Sdn Bhd, a joint venture between ENGIE Renewable SEA Pte Ltd (ENGIE) and Conextone Energy Sdn Bhd, a solar energy developer in Malaysia.
The agreement will secure the supply of around 50 GWh of renewable energy annually from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia, for cleaner and greener operations in STMicroelectronics’ assembly site in the region.
Furthermore, the company highlighted that the contract is part of the Corporate Green Power Programme introduced by Malaysia’s Single Buyer in 2023.
STMicroelectronics sees this deal as a stepping stone towards its goal of achieving carbon neutrality in operations by 2027, alongside sourcing 100% renewable energy.
Geoff West, EVP and Chief Procurement Officer at STMicroelectronics, stated, “PPAs will be essential to our transition, and starting in 2025, this agreement with ENGIE will provide substantial renewable energy for our high-volume test and assembly site in Muar, Johor.”
ST’s Muar site in Johor employs over 4700 people, supporting automotive and other high-reliability technologies.
Amit Jain, Managing Director India & Southeast Asia at ENGIE, added, “By supplying around 50 GWh of renewable energy annually from our new 30 MW solar project in Malaysia, we are helping ST achieve its 100% renewable sourcing goal.”
STMicroelectronics, with over 50,000 employees, designs and manufactures semiconductor technologies to support sustainable solutions in mobility, power, and cloud-connected systems.
