Second ST energy deal highlights sustainable fabs challenge
STMicroelectronics has signed a long term renewable energy supply deal with Centrica Energy in Denmark that highlights the challenges of sustainable fabs
The 10 year deal with Centrica is the second to make the ST fabs in Agrate and Catania in Italy sustainable with 61GWh of power a year from a solar farm as well as offices and design centres. This follows a 250GWh deal signed last year.
The Power Purchase Agreement (PPA) deal will support ST’s target to be carbon neutral by 2027 with 100% renewable energy sourcing. The company is aiming to save 150GWh per year by 2027.
Semiconductor fabs have high levels of power requirements and operate 24/7, which also requires significant battery storage on the solar farms. As a measure of the size of the requirement, Centrica current has 16 GW of capacity under contract in Europe of which approximately 80% is renewable assets.
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The previous 15 year deal is with ERG Power Generation for 250 GWh of renewable energy per year produced by the Sicilian wind farms of Camporeale near Palermo and Mineo-Militello-Vizzini near Catania. ST has yet to specify how its fabs at Crolles, Tours and Rousset will be powered by renewable energy to meet the 2027 target.
In 2022, ST decreased energy consumption (per unit of production) by 19.8% compared to 2016, in line with its 2025 goal of a 20% reduction. However, there was an increase in the absolute energy consumption of 5% from a significant increase in production.
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“This second power purchasing agreement in Italy 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,” Geoff West, EVP and Chief Procurement Officer, STMicroelectronics. “The PPA [agreements] will play a major role in our transition. Starting in 2025, this PPA with Centrica will provide a significant level of renewable energy for ST’s operations in Italy, which includes R&D, design, sales and marketing and large-volume chip manufacturing.”
“Centrica Energy continues to expand its capabilities and through this collaboration we will bring renewable energy to one of Europe’s biggest technology companies,” said Kristian Gjerløv-Juel, Vice President for Renewable Energy Trading & Optimisation for the Danish subsidiary of UK-based Centrica.
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