STMicroelectronics and ENGIE sign long-term agreement for the supply of electricity produced from renewable sources in Malaysia
STMicroelectronics (NYSE: STM) has signed a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, a joint venture between ENGIE and Conextone Energy, for renewable energy supply in Malaysia. The agreement will provide approximately 50 GWh of renewable energy annually from a new solar farm in Bukit Kayu Hitam, Kedah. This initiative supports ST's goal of achieving carbon neutrality in operations by 2027 and 100% renewable energy sourcing. The renewable energy will power ST's high-volume test and assembly site in Muar, Johor, which employs over 4,700 people.
STMicroelectronics (NYSE: STM) ha firmato un contratto di acquisto di energia (PPA) della durata di 21 anni con BKH Solar Sdn Bhd, una joint venture tra ENGIE e Conextone Energy, per la fornitura di energia rinnovabile in Malesia. L'accordo prevede la fornitura di circa 50 GWh di energia rinnovabile annui da un nuovo parco solare a Bukit Kayu Hitam, Kedah. Questa iniziativa sostiene l'obiettivo di ST di raggiungere la neutralità carbonica nelle operazioni entro il 2027 e ottenere il 100% di energia rinnovabile. L'energia rinnovabile alimenterà il sito di collaudo e assemblaggio ad alto volume di ST a Muar, Johor, che occupa oltre 4.700 persone.
STMicroelectronics (NYSE: STM) ha firmado un contrato de compra de energía (PPA) por 21 años con BKH Solar Sdn Bhd, una empresa conjunta entre ENGIE y Conextone Energy, para el suministro de energía renovable en Malasia. El acuerdo proporcionará aproximadamente 50 GWh de energía renovable anuales de un nuevo parque solar en Bukit Kayu Hitam, Kedah. Esta iniciativa apoya el objetivo de ST de alcanzar la neutralidad de carbono en sus operaciones para 2027 y la obtención de energía 100% renovable. La energía renovable impulsará el sitio de pruebas y ensamblaje de alto volumen de ST en Muar, Johor, que emplea a más de 4.700 personas.
STMicroelectronics (NYSE: STM)는 ENGIE와 Conextone Energy의 합작 투자 회사인 BKH Solar Sdn Bhd와 함께 ~하는 21년 전력 구매 계약 (PPA)을 체결했습니다. 말레이시아에서 재생 가능 에너지를 공급합니다. 이 계약은 Kedah의 Bukit Kayu Hitam에 있는 새로운 태양광 발전소에서 연간 약 50GWh의 재생 가능 에너지를 제공합니다. 이 이니셔티브는 ST가 2027년까지 운영의 탄소 중립성을 달성하고 100% 재생 가능 에너지 조달 목표를 지원하는 데 도움이 됩니다. 재생 가능 에너지는 Johor의 Muar에 있는 ST의 고용량 테스트 및 조립 사이트에 전력을 공급하며, 이곳에는 4,700명 이상의 직원이 근무하고 있습니다.
STMicroelectronics (NYSE: STM) a signé un contrat d'achat d'électricité (PPA) de 21 ans avec BKH Solar Sdn Bhd, une coentreprise entre ENGIE et Conextone Energy, pour la fourniture d'énergie renouvelable en Malaisie. L'accord fournira environ 50 GWh d'énergie renouvelable chaque année à partir d'une nouvelle centrale solaire à Bukit Kayu Hitam, Kedah. Cette initiative soutient l'objectif de ST d'atteindre la neutralité carbone dans ses opérations d'ici 2027 et d'obtenir 100 % d'énergie renouvelable. L'énergie renouvelable alimentera le site de tests et d'assemblage à fort volume de ST à Muar, Johor, qui emploie plus de 4 700 personnes.
STMicroelectronics (NYSE: STM) hat einen 21-jährigen Stromabnahmevertrag (PPA) mit BKH Solar Sdn Bhd, einem Joint Venture zwischen ENGIE und Conextone Energy, zur Lieferung von erneuerbarer Energie in Malaysia unterzeichnet. Der Vertrag sieht vor, dass jährlich ungefähr 50 GWh erneuerbarer Energie aus einem neuen Solarpark in Bukit Kayu Hitam, Kedah, bereitgestellt werden. Diese Initiative unterstützt STs Ziel, bis 2027 Kohlenstoffneutralität in den Betrieben zu erreichen und 100 % erneuerbare Energien zu beziehen. Die erneuerbare Energie wird STs Hochvolumen-Test- und Montagewerk in Muar, Johor, versorgen, das über 4.700 Mitarbeiter beschäftigt.
- Secured long-term renewable energy supply for 21 years
- Agreement supports company's 2027 carbon neutrality goals
- Will power significant operations at Muar facility with 4,700 employees
- None.
Insights
This PPA represents a significant strategic move for STMicroelectronics' sustainability goals. The 21-year agreement to source 50 GWh of renewable energy annually will substantially reduce the carbon footprint of ST's major Malaysian operations. The deal's length provides long-term cost predictability and energy security while supporting Malaysia's Corporate Green Power Program.
The timing aligns perfectly with ST's ambitious 2027 carbon neutrality target. For the Muar facility, which employs over 4,700 people and serves critical automotive customers, this renewable energy transition is particularly important for maintaining competitive advantages in the increasingly ESG-conscious automotive supply chain. This type of long-term renewable energy commitment typically results in both operational cost savings and enhanced corporate sustainability metrics, which increasingly influence investor decisions and customer relationships.
STMicroelectronics and ENGIE sign long-term agreement for the supply of electricity produced from renewable sources in Malaysia
- 21-year contract for energy produced by a new solar farm in Malaysia, where ST operates a large-volume test & assembly site.
- PPA will support the 2027 carbon neutrality and
100% renewable energy sourcing targets of ST.
Geneva (Switzerland) and Kuala Lumpur (Malaysia) – November 7, 2024 -- STMicroelectronics (NYSE: STM), a global semiconductor leader serving customers across the spectrum of electronics applications, announced today a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, an entity jointly established by ENGIE Renewable SEA Pte Ltd (ENGIE), a renowned global leader in low-carbon energy and services, and Conextone Energy Sdn Bhd, a rapidly emerging solar energy developer in Malaysia. The agreement will facilitate the supply of approximately 50 GWh of renewable energy annually from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia. This long-term agreement is undertaken under the Corporate Green Power Program introduced by the Malaysian Single Buyer in 2023.
Geoff West, EVP and Chief Procurement Officer, STMicroelectronics, commented: “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
Amit Jain, Managing Director India & Southeast Asia, ENGIE, commented: “ENGIE is delighted to join forces with STMicroelectronics in the global transition towards sustainable energy solutions. By supplying approximately 50 GWh of renewable energy annually from our new solar PV 30 MW project in Malaysia, we are proudly contributing to ST's transition towards
ST’s high-volume test and assembly site located in Muar, Johor, has over 4,700 employees supporting multiple technologies and products, including high reliability applications for automotive customers. ST also operates support functions out of Penang and Kuala Lumpur.
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 cloud-connected autonomous things. 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.
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About ENGIE
ENGIE is a global reference in low-carbon energy and services. With its 97,000 employees, clients, partners and stakeholders, the Group strives every day to accelerate the transition towards a carbon-neutral economy, through reduced energy consumption and more environmentally friendly solutions. Inspired by its purpose statement, ENGIE reconciles economic performance with a positive impact on people and the planet, building on its key businesses (gas, renewable energy, services) to offer competitive solutions to its clients.
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FAQ
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