(Alliance News) - STMicroelectronics NV on Thursday said it has signed a long-term agreement with Centrica PLC for the supply of electricity produced from renewable sources in Italy.

The Geneva, Switzerland-based semiconductor manufacturer said the deal starts in January 2025 and lasts for ten years.

Centrica will sell approximately 61 gigawatt hours of renewable energy per year, produced by a new solar farm in Italy.

This is the second deal STMicroelectronics' has landed in Italy. Back in November, the firm inked a deal with a ERG Spa subsidiary, ERG Power Generation Spa, for the supply of semiconductor sites in Agrate and Catania. The deal will run until 2038.

Centrica is a Windsor, England-based energy services firm which owns British Gas.

STMicroelectronics said: "This second power purchasing agreement in Italy 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. [Power purchasing agreements] will play a major role in our transition. Starting in 2025, this PPA with Centrica will provide a significant level of renewable energy for ST’s operations in Italy, which includes [research & development], design, sales and marketing and large-volume chip manufacturing."

Shares in Microelectronics were 0.2% higher at EUR39.53 each on Thursday afternoon in Paris, while Centrica shares rose 4.1% to 131.20 pence each in London.

By Sabrina Penty, Alliance News reporter

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