Engie Banks 21-Year Malaysian Solar PPA

Wedoany.com Report-Nov 12,  Semiconductor manufacturer STMicroelectronics (ST) has signed a 21-year Power Purchase Agreement (PPA) with Engie/Conextone Energy joint venture BKH Solar Sdn Bhd covering energy produced by a 30MW Malaysian solar farm.

The agreement facilitates the supply of approximately 50GWh of renewable energy annually from the new PV array in Bukit Kayu Hitam, Kedah.

This long-term agreement is undertaken under the Corporate Green Power Program introduced by the Malaysian Single Buyer in 2023.

STMicroelectronics executive vice president and chief procurement officer Geoff West said: “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.”

Engie managing director India & south-east Asia Amit Jain added: “ENGIE is delighted to join forces with STMicroelectronics in the global transition towards sustainable energy solutions.

“By supplying approximately 50GWh of renewable energy annually from our new 30MW solar 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.”

ST’s high-volume test and assembly site located in Muar, Johor, has over 4700 employees supporting multiple technologies and products, including high reliability applications for automotive customers.

It also operates support functions out of Penang and Kuala Lumpur.