STMicroelectronics has signed a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, a joint venture between ENGIE Renewable SEA Pte Ltd and Conextone Energy Sdn Bhd. This collaboration aims to supply approximately 50 GWh of renewable energy annually from a new solar farm located in Bukit Kayu Hitam, Kedah, Malaysia. The agreement is part of the Corporate Green Power Program introduced by Malaysia's Single Buyer in 2023.
“This long-term power purchasing agreement in Malaysia, ST's first in Asia, is a critical step toward our commitment to achieving carbon neutrality across our operations by 2027, which includes sourcing 100% renewable energy,” said Geoff West, Executive Vice President and Chief Procurement Officer at STMicroelectronics. “PPAs are pivotal in our transition strategy. Starting in 2025, this agreement with ENGIE will provide a significant portion of the renewable energy needed for our high-volume test and assembly site in Muar, Johor, Malaysia.”
Amit Jain, Managing Director for India & Southeast Asia at ENGIE, expressed enthusiasm about the partnership, stating, “ENGIE is pleased to collaborate with STMicroelectronics on this project, contributing to the global shift towards sustainable energy solutions. Our new 30 MW solar photovoltaic project in Malaysia will generate approximately 50 GWh of renewable energy annually, supporting ST's goal of sourcing 100% renewable energy. This partnership underscores ENGIE's commitment to delivering green, clean, and reliable energy to its clients.”
STMicroelectronics' high-volume test and assembly site in Muar, Johor, employs over 4,700 individuals and supports a range of technologies and products, including high reliability applications for automotive customers. Additionally, ST operates support functions out of Penang and Kuala Lumpur.
