TotalEnergies sign a 15-year contract to supply STMicroelectronics with renewable energy

Investing.com -- TotalEnergies (EPA:TTEF) and STMicroelectronics have entered into a long-term agreement for the supply of renewable electricity to STMicroelectronics’ facilities in France. The 15-year Power Purchase Agreement (PPA), which commences in January 2025, encompasses a total volume of 1.5 terawatt-hours (TWh).

Under the terms of the PPA, TotalEnergies will deliver renewable energy from two of its newly operated wind and solar farms, each with a capacity of 75 megawatts. The energy will include guarantees of origin, certifying its renewable nature.

Additionally, TotalEnergies will provide structuration services to ensure a consistent supply of green electricity, despite the intermittent nature of renewable sources.

This PPA is notable as it marks the first of its kind in France to span a 15-year duration, reflecting a growing trend in long-term renewable energy procurement. The environmental benefits and community impact of the wind and solar projects were significant factors in finalizing the agreement.

Sophie Chevalier, Senior Vice President Flexible Power & Integration at TotalEnergies, expressed enthusiasm for the partnership, stating, "We are delighted to sign this agreement with STMicroelectronics, which demonstrates our ability to provide long-term and innovative clean firm power solutions tailored to our customers’ needs."

Geoff West, EVP and Chief Procurement Officer at STMicroelectronics, underscored the importance of the PPA in the company’s strategy to achieve carbon neutrality in its operations by 2027.

The company aims to source 100% renewable energy by the same year, with the PPA playing a significant role in this transition. STMicroelectronics has also engaged in similar renewable energy agreements to support its operations in Italy and Malaysia.

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