STMicroelectronics and ENGIE Partner on 21-Year Renewable Energy Agreement in Malaysia

STMicroelectronics , a leading global semiconductor company, has entered 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 will support the development of a new solar farm in Bukit Kayu Hitam, Kedah, Malaysia, which is expected to supply STMicroelectronics with approximately 50 GWh of renewable energy annually. The agreement aligns with Malaysia’s Corporate Green Power Program, introduced by the Malaysian Single Buyer in 2023 to advance corporate use of green energy.

This project represents STMicroelectronics’ first power purchasing agreement in Asia and will support the company’s high-volume test and assembly site in Muar, Johor. Starting in 2025, the solar energy provided through this agreement will contribute to ST’s goal of achieving carbon neutrality by 2027, including Scope 1 and 2 emissions and part of Scope 3 emissions.

Geoff West, EVP and Chief Procurement Officer at STMicroelectronics, highlighted the impact of this PPA on their sustainability efforts, noting that “PPAs will play a major role in our transition. This agreement with ENGIE provides a significant level of renewable energy for ST’s operations in Malaysia.”

Amit Jain, Managing Director for India & Southeast Asia at ENGIE, expressed enthusiasm about the partnership, stating, “ENGIE is proud to support STMicroelectronics in its journey towards sustainable energy. Our 30 MW solar PV project in Malaysia will contribute green, clean, and reliable energy to ST’s operations, underscoring our commitment to renewable solutions.”

STMicroelectronics’ facility in Muar, Johor, employs over 4,700 staff and supports automotive and other high-reliability applications. The company also operates facilities in Penang and Kuala Lumpur.