Yorkshire Water will produce biogas as a by-product of its sewage treatment processes.
Centrica Energy Trading will then take charge of the management of this biomethane production, handling shipping, trading and balancing of this biogas.
SGN Commercial Services will design, develop and operate the biomethane sites.
These sites are expected to produce an estimated 125GWh of biomethane annually, enough to heat more than 10,000 households across the UK.
Kristian Gjerløv-Juel, Director for Renewable Energy Trading and Optimisation at Centrica Energy Trading, said: “Having recently expanded our capabilities to handle trading, nomination, and transportation of green gas in the UK market, we’re working to accelerate biomethane production across Europe and using our capabilities to help businesses deliver on their green procurement strategies and reduce emissions.”