STMicroelectronics has announced a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, a company founded by Conextone Energy Sdn Bhd, a fast-growing solar energy developer in Malaysia, and ENGIE Renewable SEA Pte Ltd (ENGIE), a well-known low-carbon energy and services provider.
Through the deal, a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia, will be able to offer about 50 GWh of renewable energy each year. This long-term contract was signed as part of the Corporate Green Power Program, which the Malaysian Single Buyer launched in 2023.
Over 4,700 workers support a variety of technologies and products, including high reliability applications for automotive customers, at ST’s high-volume test and assembly facility in Muar, Johor. Additionally, ST provides support services from Penang and Kuala Lumpur.
Key Takeaways From the Agreement:
- 21-year agreement for energy generated by a brand-new solar farm in Malaysia, where ST runs a sizable test and assembly facility.
- PPA will help ST meet its goals of becoming carbon neutral and receiving all of its energy from renewable sources by 2027.
Key Comments
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 100% renewable energy by 2027. PPAs will play a major role in our transition. Starting in 2025, this PPA with ENGIE will provide a significant level of renewable energy for ST’s operations in our high-volume test and assembly site in Muar, Johor, Malaysia.”
Amit Jain, Managing Director India & Southeast Asia, ENGIE, commented: “ENGIE is delighted to join forces with ST 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 100% renewable sourcing. This partnership with ST demonstrates our commitment to providing green, clean and reliable energy to our clients.”
Further Info on ST’s Energy and Climate Change Commitments: CLICK HERE
