TotalEnergies, STMicroelectronics Sign 15-Year Green PPA

A pioneer in sustainable energy, TotalEnergies and STMicroelectronics have agreed on a physical 15-year Power Purchase Agreement (PPA) to supply renewable electricity to the group's sites located in France. The power purchase agreement, due to start in January 2025, will deliver 1.5 TWh of renewable power to be sourced from wind and solar farms operated by TotalEnergies. This collaboration enables STMicroelectronics to accelerate its pace toward achieving carbon neutrality, targeting to reach it by 2027.

The electricity will be generated from two newly developed wind and solar farms totaling 75 MW. This makes this agreement unusual, with its innovative structuration services that transform an intermittent supply of wind and solar energy into a constant baseload supply. That way, a stable, reliable stream of green energy becomes critical for industrial operations.

Sophie Chevalier, Senior Vice President of Flexible Power & Integration at TotalEnergies, emphasized the company’s commitment to delivering clean and dependable power solutions. “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,” she said.

The deal holds significant importance as it marks the first 15-year baseload renewable energy PPA in France. This milestone highlights the growing demand for sustainable power solutions in the country and sets a precedent for future collaborations within the energy and industrial sectors.

STMicroelectronics aims to have become carbon neutral on Scope 1, Scope 2, and partially Scope 3 by its operations in the year 2027. Therefore, in executing this commitment to sustainability, it is ensuring complete transition into a 100 per cent renewable world for its whole operations in global locations.

Geoff West, Executive Vice President and Chief Procurement Officer at STMicroelectronics, emphasized how PPAs will be a significant part of the company's sustainability journey. "PPAs will play a major role in our transition, and we have already signed several to support ST's operations in Italy and Malaysia. Starting in 2025, this PPA with TotalEnergies will provide a significant level of renewable energy for ST's operations in France," West explained.

The agreement is a testament not only to TotalEnergies' capability to deliver clean energy solutions but also its commitment to supporting corporate decarbonization efforts. TotalEnergies has secured similar contracts with major global companies, including Saint-Gobain, Air Liquide, Amazon, LyondellBasell, Merck, Microsoft, Orange, and Sasol. These partnerships reinforce the company's role as a key player in the renewable energy landscape and its dedication to providing tailored solutions for corporate clients seeking to reduce their carbon footprint.

Perhaps most notable about this contract is its fact that it is a physical PPA as opposed to virtual. While the latter only comprises guarantee of origin transfers, in a physical PPA, one guarantees the delivery of renewable electricity directly to a customer's operation, along with its guarantees. This gives way to a much more tangible and transparent route towards fulfilling companies' sustainability goals as demand for verifiable renewable energy solutions continues to grow.

The environmental and community benefits of the wind and solar projects also played a crucial role in driving the agreement forward. In investing in renewable infrastructure, TotalEnergies supports its corporate clients but also contributes to the broader goal of reducing France's carbon emissions and advancing the country's energy transition.

The direction of the global energy market toward sustainability demands greater importance on partnerships such as that between TotalEnergies and STMicroelectronics. Companies will be better positioned to be resilient, reduce operational risks, and assume responsibility for environmental stewardship by securing access to clean and reliable energy over the long term.

This landmark agreement exemplifies the force of cooperation in furthering the renewable energy agenda and presents an excellent example to other players within the industry. As STMicroelectronics nears its carbon-neutrality milestone, this collaboration with TotalEnergies is sure to influence a better, more sustainable future for the company and communities alike.