STMicroelectronics and Centrica Energy have inked a ten-year Power Purchase Agreement for the supply of renewable energy to the former’s operations in Italy. The power sale will start in January 2025, and under this agreement Centrica will sell approximately 61 GWh of renewable energy annually to ST from its new solar farm in Italy. ST operates two high-volume semiconductor manufacturing sites in Agrate (near Milan) and Catania in Italy along with various other locations for R&D, design, and sales and marketing.
This is ST’s second power purchasing agreement in Italy and will help the company move closer to its goal of becoming carbon neutral in its operations (Scope 1 and 2 emissions, and partially scope 3) by 2027. It will also help the company achieve its target of sourcing 100% renewable energy by 2027.
Centrica Energy is the trading and optimisation arm of Centrica plc. The company has around 16 GW of energy capacity under contract in Europe and 80% of this is made of renewable energy. Meanwhile, ST is a large manufacturer of semiconductor technologies with state-of-the-art manufacturing facilities.
REGlobal’s Views: Many large tech corporations like STMicroelectronics which consume massive energy to power their operations, are now accelerating their energy transition plans and rapidly switching to renewable energy sources. More such corporates are joining the clean energy bandwagon to not only reduce their emissions, but also attract environmentally conscious investors and consumers and to bring down the cost of their power consumption through cheap renewables.
