Italian energy company ERG SpA (BIT:ERG) has agreed to supply electricity from two Sicilian wind farms to Geneva-based chipmaker STMicroelectronics (BIT:STMMI) over a period of 15 years, it was announced today.
The two companies have entered into a power purchase agreement (PPA) under which ERG Power Generation will deliver about 250 GWh of electricity per year to STMicro for its Italian operations over the 2024-2038 timeframe. This equals a total volume of 3.75 TWh for the entire duration of the contract.
Subscribe for Renewables Now’s Corporate PPA Newsletter here for free!
The electricity will be sourced from the Camporeale wind park near Palermo and the Mineo-Militello-Vizzini wind farm near Catania, both of which are being repowered to reach a total installed capacity of 151.4 MW.
STMicro has set itself the goal to become carbon neutral in its operations by 2027. This includes Scope 1 and 2 emissions, and partially Scope 3. By that same year, it wants to be sourcing 100% renewable energy.
In Italy, the company operates two high-volume semiconductor manufacturing sites in Agrate and Catania along with several research and development (R&D), design, and sales and marketing sites. According to Geoff West, EVP and Chief Procurement Officer, PPAs will play a major role in STMicro’s transition.
