TotalEnergies Signs Renewable PPA with STMicroelectronics

TotalEnergies SE has signed a “physical” power purchase agreement (PPA) with STMicroelectronics, a semiconductor specialist, for a renewable energy supply. TotalEnergies said in a media release that in January it started delivering renewable electricity to STMicroelectronics sites in France under a 15-year contract. The overall volume to be delivered under the contract is 1.5 terawatt hours (TWh).

In a physical PPA, the electricity and the associated guarantees of origin are delivered to the customer, as opposed to a “virtual” PPA, where only the guarantees of origin are delivered to the customer, and the electricity produced is sold to the grid, TotalEnergies explained.

The energy giant said the power, including the guarantee of origin, is delivered from two recent wind and solar farms of 75 megawatts it operates. This power comes with structuration services to transform intermittent production in a constant volume of green electricity, TotalEnergies said.

“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”, Sophie Chevalier, Senior Vice President Flexible Power & Integration at TotalEnergies, said. “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 100 percent renewable energy by 2027”, said Geoff West, EVP and Chief Procurement Officer at STMicroelectronics. “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, which includes R&D, design, sales and marketing, and large-volume chip manufacturing”.

The PPA with STMicroelectronics follows similar contracts signed with Saint-Gobain, Air Liquide, Amazon, LyondellBasell, Merck, Microsoft, Orange, and Sasol, TotalEnergies said.

Source: By Paul Anderson from Rigzone.com