STM and ENGIE to supply of electricity produced from renewable sources in Malaysia

STMicroelectronics has announced a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, an entity jointly established by ENGIE Renewable SEA Pte Ltd (ENGIE), a global leader in low-carbon energy and services, and Conextone Energy Sdn Bhd, a rapidly emerging solar energy developer in Malaysia. 

The agreement will facilitate the supply of approximately 50 GWh of renewable energy annually from a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia. This long-term agreement is undertaken under the Corporate Green Power Program introduced by the Malaysian Single Buyer in 2023.

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, MD, India & Southeast Asia, ENGIE, commented: “ENGIE is delighted to join forces with STMicroelectronics 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.”

ST’s high-volume test and assembly site located in Muar, Johor, has over 4,700 employees supporting multiple technologies and products, including high reliability applications for automotive customers. ST also operates support functions out of Penang and Kuala Lumpur.