Italian energy company ERG SpA has entered into a 15-year power purchase agreement (PPA) with Geneva-based chipmaker STMicroelectronics. Under the agreement, ERG Power Generation will supply around 250 GWh of electricity annually to STMicroelectronics for its Italian operations from 2024 to 2038, totaling 3.75 TWh over the contract's duration.
The electricity will be sourced from two Sicilian wind farms undergoing repowering efforts—Camporeale near Palermo and Mineo-Militello-Vizzini near Catania. The repowered facilities will achieve a combined installed capacity of 151.4 MW.
STMicroelectronics has set an ambitious target to achieve carbon neutrality in its operations by 2027, covering Scope 1 and 2 emissions and partially Scope 3. Additionally, the company aims to source 100% renewable energy by the same year. The PPA with ERG aligns with STMicroelectronics' sustainability goals and signifies a significant step towards securing a clean energy supply for its facilities in Italy.
Geoff West, EVP and Chief Procurement Officer at STMicroelectronics, emphasized the pivotal role of power purchase agreements in the company's transition to renewable energy. The partnership with ERG underscores the commitment of both companies to advancing sustainable practices and contributing to the global shift towards a cleaner and more environmentally friendly energy landscape.
