European chip manufacturer STMicroelectronics has signed a 15-year Power Purchase Agreement (PPA) with French solar developer TSE Energy.

The PPA will see TSE supply ST with power generated by three solar parks in France, with a combined capacity of 43MW. The contract will commence in 2027 and represents an overall annual capacity of approximately 780GWh

“This is our second PPA in France, marking 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 electricity by 2027,” said Chouaib Rokbi, EVP DTIT and global procurement organization, STMicroelectronics. “PPAs play a major role in our transition, and we have already signed several to support ST’s operations in France, Italy, Malaysia, and Morocco.”

According to the companies, the PPA is a physical agreement under which the power generated by the parks will be delivered directly to STMicroelectronics’ sites in France, unlike the vast majority of PPAs, which involve the purchase of renewable energy credits.

“France’s energy resilience is built on action and ambition. This partnership with STMicroelectronics demonstrates our collective ability to align industrial sovereignty with the energy transition. To remain a strong and competitive nation, France must secure sovereign, abundant, decarbonized, and cost-effective energy,” added Mathieu Debonnet, president and co-founder, TSE.

ST has signed several PPAs in an effort to decarbonize its operations. In January, the firm inked a 15-year deal with Total Energies for 1.5TWh of power over the contracted agreement. The PPA will power STMicroelectronics sites in France and will be supplied from two recently constructed wind and solar farms with a combined capacity of 75MW.

Before this, in November, the company signed a 21-year PPA with Engie in Malaysia. The agreement will supply STMicroelectronics with 50GWh annually from a solar farm in Bukit Kayu Hitam, Kedah, Malaysia.

Based in Valbonne, France, TSE primarily focuses on developing solar and agrivoltaic projects. The company has approximately 241MW of installed capacity across 34 projects, with a further seven projects totaling 136MW under development.