STMicroelectronics (ST) has signed a 21-year Power Purchase Agreement (PPA) with BKH Solar Sdn Bhd, a joint venture between Engie and Conextone Energy, to source renewable energy from a new 30MW solar farm in Bukit Kayu Hitam, Kedah, Malaysia.
This agreement will supply approximately 50GWh of solar energy annually to ST’s operations.
The PPA is part of Malaysia’s Corporate Green Power Program, launched by the Malaysian Single Buyer in 2023, which promotes long-term renewable energy partnerships for corporate clients.
Geoff West, STMicroelectronics Executive VP and Chief Procurement Officer, said:
“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, Engie managing director for India and Southeast Asia, added, “ENGIE is delighted to join forces with STMicroelectronics in the global transition towards sustainable energy solutions.
By supplying approximately 50GWh of renewable energy annually from our new 30MW solar 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 assembly and testing site in Muar, Johor, employs over 4,700 people and supports a range of technologies and products, including high-reliability applications for the automotive industry. Additional ST operations are located in Penang and Kuala Lumpur.
