TotalEnergies, STMicroelectronics Sign First-Of-Its-Kind 15-Year Renewable Power Deal In France

TotalEnergies SE TTE shares are trading lower premarket on Wednesday. The company entered into a 15-year physical Power Purchase Agreement (PPA) with STMicroelectronics N.V. STM.

As per the deal, TotalEnergies will supply renewable electricity to STMicroelectronics’ sites in France.

The agreement, which takes effect in January 2025, covers a total volume of 1.5 TWh.

TotalEnergies will provide STMicroelectronics with renewable power, along with guarantees of origin, from two newly constructed 75 MW wind and solar farms managed by TotalEnergies.

The agreement also includes services to stabilize intermittent production into a consistent baseload of green electricity.

Notably, this is the first 15-year contract of its kind in France.

Geoff West, EVP and Chief Procurement Officer at STMicroelectronics said, "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% renewable energy by 2027,"

"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," he added.

Investors can gain exposure to the stock via Octane All-Cap Value Energy ETF OCTA and First Trust Exchange-Traded Fund IV FT Energy Income Partners Strategy ETF EIPX.

Price Action: TTE shares are down 0.53% at $57.82 premarket at the last check Wednesday.

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