STMicroelectronics NV (NYSE:STM) inked a fifteen-year Power Purchase Agreement (PPA) with ERG for the supply of renewable energy to its operations in Italy during 2024-2038.
The company operates two high-volume semiconductor manufacturing sites in Agrate (near Milan) and Catania and multiple R&D, design, and sales and marketing sites in Italy.
The agreement is based on the sale by ERG of around 250 GWh of renewable energy annually, equivalent to a total volume of 3.75 TWh over 15 years, produced by the Sicilian wind farms of Camporeale near Palermo and Mineo-Militello-Vizzini near Catania. Both are repowering projects with a total installed capacity of 151.4 MW.
“This agreement 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 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,” said Geoff West, EVP and Chief Procurement Officer, STM.
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Last month, STM reported third-quarter FY23 revenue growth of 2.5% year-on-year to $4.43 billion, beating the consensus of $4.38 billion. EPS of $1.16 beat the consensus of $1.09.
Price Action: STM shares are trading higher by 0.57% at $45.54 on the last check Friday.
