STMicroelectronics Secures 15-Year Renewable Energy Deal with ERG for Italian Operations
Portfolio Pulse from Benzinga Newsdesk
STMicroelectronics (NYSE:STM) has entered into a 15-year Power Purchase Agreement with ERG's subsidiary ERG Power Generation to supply renewable energy to its Italian operations from 2024 to 2038. The deal involves the sale of approximately 250 GWh of renewable energy annually, totaling 3.75 TWh over the duration, from ERG's Sicilian wind farms. This will support STM's semiconductor manufacturing sites in Agrate and Catania, as well as its R&D and sales and marketing sites in Italy.
November 24, 2023 | 11:04 am
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STMicroelectronics has secured a long-term renewable energy supply for its Italian operations, which may reduce energy costs and enhance its sustainability profile.
The agreement with ERG for renewable energy supply is likely to have a positive impact on STM's stock in the short term. Investors may view this as a cost-saving measure and a commitment to sustainability, which can be favorable for the company's public image and potentially reduce operational costs over time. The long-term nature of the deal provides stability in energy supply and cost predictability, which is beneficial for financial planning.
CONFIDENCE 85
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