STMicroelectronics and Centrica Energy sign long-term agreement for the supply of electricity produced from renewable sources in Italy

Rhea-AI Summary

STMicroelectronics (STM) and Centrica Energy sign a 10-year agreement for the supply of renewable energy in Italy. The deal supports STM's goal of becoming carbon neutral by 2027.

PR N°: C3249C

STMicroelectronics and Centrica Energy sign long-term agreement for the supply of electricity produced from renewable sources in Italy

• 10-year contract for energy produced by a new solar farm in Italy
• PPA will support 2027 carbon neutral and 100% renewable energy sourcing goals of semiconductor manufacturer with 2 large-volume manufacturing sites in Italy

Geneva (Switzerland) and Aalborg (Denmark), April 11, 2024 – STMicroelectronics, (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, and Centrica Energy Trading A/S (“Centrica Energy”) announced today that they have signed a ten-year Power Purchase Agreement (PPA) for the supply of renewable energy to its operations in Italy, starting January 2025. The agreement is based on the sale by Centrica of approximately 61 GWh of renewable energy per year, produced by a new solar farm in Italy. In Italy, ST operates two high-volume semiconductor manufacturing sites in Agrate (near Milan) and Catania as well as multiple R&D, design, and sales and marketing sites.

Geoff West, EVP and Chief Procurement Officer, STMicroelectronics, commented: “This second power purchasing agreement in Italy 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 Centrica 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.”

Kristian Gjerløv-Juel, Vice President for Renewable Energy Trading & Optimisation, Centrica, said: “We’re pleased to have signed this agreement with STMicroelectronics. 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."

More information about ST’s energy and climate change commitments is available here.

About STMicroelectronics
At ST, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and connectivity. We are committed to achieving our goal to become carbon neutral on scope 1 and 2 and partially scope 3 by 2027. Further information can be found at www.st.com.

About Centrica Energy

Centrica Energy is the trading and optimisation arm of Centrica plc, operating out of eight offices across all time zones to move energy from source to use. We are a leading provider of energy management and optimisation services to business, in addition to managing commodity risk and providing wholesale market access for the Centrica group. We have 16 GW of capacity under contract in Europe of which approximately 80% is renewable assets.  Our mission is to drive the green transition while offering sustainable and predictable energy costs for suppliers and offtakers. In short, we call ourselves energy movers by nature.

CONTACTS

STMicroelectronics

INVESTOR RELATIONS
Céline Berthier
Group VP, Investor Relations
Tel: +41 22 929 58 12
celine.berthier@st.com

MEDIA RELATIONS
Alexis Breton
Corporate External Communications
Tel: + 33 6 59 16 79 08
alexis.breton@st.com

Centrica

MEDIA RELATIONS
media@centrica.com

 

Attachment

• C3249C -ST x Centrica PPA Italy_FINAL FOR PUBLICATION

FAQ

What is the duration of the agreement between STMicroelectronics and Centrica Energy?

The agreement is for a period of 10 years.

How much renewable energy will Centrica Energy supply to STMicroelectronics annually?

Centrica Energy will supply approximately 61 GWh of renewable energy per year.

What type of energy source will be used for the supply of renewable energy?

The energy will be produced by a new solar farm in Italy.

What are STMicroelectronics' goals related to renewable energy sourcing by 2027?

STMicroelectronics aims to achieve carbon neutrality and source 100% renewable energy by 2027.

Who is the EVP and Chief Procurement Officer of STMicroelectronics?

Geoff West is the EVP and Chief Procurement Officer of STMicroelectronics.

What role do Power Purchase Agreements (PPAs) play in STMicroelectronics' transition towards renewable energy?

PPAs play a major role in STMicroelectronics' transition towards renewable energy sourcing.