Renewable Power: TotalEnergies Will Supply 1.5 TWh to STMicroelectronics in France over 15 Years
Rhea-AI Summary
STMicroelectronics (NYSE:STM) and TotalEnergies have signed a significant 15-year physical Power Purchase Agreement (PPA) to supply renewable electricity to STM's French operations. Starting January 2025, the agreement covers 1.5 TWh of total power supply from two renewable energy facilities operated by TotalEnergies, comprising wind and solar farms with 75 MW capacity.
This marks STM's first PPA in France, representing a important step toward their goal of achieving 100% renewable energy sourcing by 2027. The agreement includes structuration services to convert intermittent renewable production into constant baseload green electricity. STM has previously implemented similar PPAs in Italy and Malaysia, demonstrating their commitment to becoming carbon neutral in operations (Scope 1, 2, and partially 3) by 2027.
Positive
- Secured long-term renewable energy supply for French operations through 15-year agreement
- Agreement supports STM's goal of 100% renewable energy sourcing by 2027
- Demonstrates successful expansion of renewable energy strategy following similar agreements in Italy and Malaysia
Negative
- None.
News Market Reaction – STM
In the trading session that priced this news, STM declined 2.38%, reflecting a moderate negative market reaction.
Data tracked by StockTitan Argus on the day of publication.
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Renewable Power: TotalEnergies Will Supply 1.5 TWh to STMicroelectronics in France over 15 Years
- 1st PPA in France for STMicroelectronics, aiming at
100% renewable sourcing by 2027 - Power comes from 2 recent wind and solar farms of 75 MW operated by TotalEnergies
Paris, Geneva – January 28, 2025 – TotalEnergies and STMicroelectronics (NYSE:STM), a global semiconductor leader serving customers across the spectrum of electronics applications, have signed a physical1 Power Purchase Agreement to supply renewable electricity to STMicroelectronics sites in France. This 15-year contract, started in January 2025, represents an overall volume of 1.5 TWh.
TotalEnergies will provide STMicroelectronics with the renewable power (including the guarantee of origin) produced by two recent wind and solar farms of 75 MW operated by TotalEnergies. This power comes with structuration services to transform intermittent production in a constant volume (“baseload”) of green electricity. It's the first time in France that such a 15-year contract is provided. The positive impact of the wind and solar projects on the environment and on the communities was a key success factor in the signing of the deal.
"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," said Sophie Chevalier, Senior Vice President Flexible Power & Integration at TotalEnergies. "TotalEnergies aims to be a preferred partner to support tech industry players towards their decarbonization efforts, and this agreement showcases our commitment and capabilities.”
“This first PPA in France 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
About STMicroelectronics
At ST, we are over 50,000 creators and makers of semiconductor technologies mastering the semiconductor supply chain with state-of-the-art manufacturing facilities. An integrated device manufacturer, we work with more than 200,000 customers and thousands of partners to design and build products, solutions, and ecosystems that address their challenges and opportunities, and the need to support a more sustainable world. Our technologies enable smarter mobility, more efficient power and energy management, and the wide-scale deployment of the Internet of Things and connectivity. We are committed to achieving our goal to become carbon neutral on scope 1 and 2 and partially scope 3 by 2027. Further information can be found at www.st.com.
TotalEnergies and electricity
As part of its ambition to get to net zero by 2050, TotalEnergies is building a world class cost-competitive portfolio combining renewables (solar, onshore and offshore wind) and flexible assets (CCGT, storage) to deliver clean firm power to its customers. By mid-2024, TotalEnergies’ gross renewable electricity generation installed capacity reached 24 GW. TotalEnergies will continue to expand this business to reach 35 GW in 2025 and more than 100 TWh of net electricity production by 2030.
About TotalEnergies
TotalEnergies is a global integrated energy company that produces and markets energies: oil and biofuels, natural gas and green gases, renewables and electricity. Our more than 100,000 employees are committed to provide as many people as possible with energy that is more reliable, more affordable and more sustainable. Active in about 120 countries, TotalEnergies places sustainability at the heart of its strategy, its projects and its operations.
For further information, please contact:
STMicroelectronics
MEDIA RELATIONS
Alexis Breton
Corporate External Communications
Tel: +33 6 59 16 79 08
alexis.breton@st.com
INVESTOR RELATIONS
Jérôme Ramel
EVP Corporate Development & Integrated External Communication
Tel: +41 22 929 59 20
jerome.ramel@st.com
TotalEnergies
MEDIA RELATIONS: +33 (0)1 47 44 46 99 l presse@totalenergies.com l @TotalEnergiesPR
INVESTOR RELATIONS: +33 (0)1 47 44 46 46 l ir@totalenergies.com
1 In the case of a “physical” Power Purchase Agreement (PPA), the renewable electricity and the associated guarantees of origin are delivered to the customer, as opposed to the “virtual” PPA, where only the guarantees of origin are delivered to the customer, and the electricity produced is sold to the grid.
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