STMicroelectronics announced on November 7, 2024, a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, a joint venture with ENGIE Renewable SEA Pte Ltd. This agreement will supply approximately 50 GWh of renewable energy annually to STMicroelectronics' test and assembly site in Muar, Johor, Malaysia.
The renewable energy will be sourced from a new solar farm located in Bukit Kayu Hitam, Kedah, Malaysia, with supply commencing in 2025. This initiative is a significant step towards STMicroelectronics' goal of becoming carbon neutral in its operations by 2027.
The PPA also supports the company's broader commitment to sourcing 100% renewable energy by 2027. This long-term agreement is expected to play a major role in the transition to sustainable energy for ST's high-volume operations in Malaysia.
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