STMicroelectronics (NYSE: STM), a leading global semiconductor company, has signed a 21-year Power Purchase Agreement (PPA) with BKH Solar SdnBhd, a joint venture between ENGIE Renewable SEA Pte Ltd and Malaysia-based solar developer Conextone Energy Sdn Bhd.
This agreement ensures the annual supply of approximately 50 GWh of renewable energy from a new solar farm in Bukit KayuHitam, Kedah, Malaysia, under Malaysia’s Corporate Green Power Program, launched by the Malaysian Single Buyer in 2023.
Geoff West, EVP and Chief Procurement Officer of STMicroelectronics, stated, “This agreement, our first PPA in Asia, is a major step towards ST’s carbon-neutral goal, which includes achieving 100% renewable energy sourcing by 2027. Starting in 2025, this PPA will provide substantial renewable energy to power ST’s high-volume test and assembly site in Muar, Johor, Malaysia.”
Amit Jain, Managing Director of ENGIE for India & Southeast Asia, added, “We are excited to support STMicroelectronics in its transition to renewable energy. Our new 30 MW solar PV project in Malaysia will supply approximately 50 GWh annually, contributing to ST’s sustainability goals and showcasing our commitment to green and reliable energy solutions.”
ENGIE is a leading global player in low-carbon energy and services. With a workforce of 97,000, ENGIE collaborates with clients, partners, and stakeholders daily to drive the transition to a carbon-neutral economy through reduced energy consumption and sustainable solutions. Guided by its mission, ENGIE combines economic performance with a positive social and environmental impact, leveraging its core expertise in gas, renewable energy, and services to deliver competitive solutions for its clients.
In 2023, ENGIE achieved a turnover of €82.6 billion. The Group is publicly traded on the Paris and Brussels stock exchanges (ENGI) and is featured in major financial indices (CAC 40, Euronext 100, FTSE Euro 100, MSCI Europe) as well as sustainability-focused indices (DJSI World, Euronext Vigeo Eiris – Europe 120 / France 20, MSCI EMU ESG Screened, MSCI Europe ESG Universal Select, and Stoxx Europe 600 ESG-X).
ST’s facility in Muar employs over 4,700 workers and supports high-reliability technologies, including automotive applications. ST also operates additional support functions in Penang and Kuala Lumpur. With over 50,000 employees worldwide, STMicroelectronics partners with more than 200,000 customers to create semiconductor technologies that drive smarter mobility, efficient energy management, and autonomous solutions, with a goal of carbon neutrality by 2027 across scope 1, scope 2, and partially scope 3 emissions.
