French-Italian semiconductor firm STMicroelectronics (ST) has signed a 15-year Power Purchase Agreement (PPA) with European energy company ERG for the supply of renewable energy to the chip company’s Italian operational base until 2038.
The agreement is based on ERG providing approximately 250 GWh of wind energy over a 15-year period to power ST’s Italian operations, which includes two semiconductor manufacturing sites near Milan and Catania.
ERG currently operates a number of wind farms in Sicily and Catania.
Geoff West, executive vice president and chief procurement officer at STMicroelectronics, said that PPAs will play a major role in helping the company reach its target of being operationally carbon neutral by 2027, which includes sourcing all of its energy from renewable sources by the same date.
“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,” he said.
STMicroelectronics is Europe’s largest semiconductor manufacturer, selling a range of products including integrated circuits, computer memory, microprocessors, microcontrollers, and transistors.