LONDON & AALBORG: Yorkshire Water, an essential water and wastewater services provider for the Yorkshire Region, and Centrica Energy Trading, have today announced signing a 15-year agreement to offtake biomethane production and manage shipping, trading, and balancing of production from two plants developed by SGN Commercial Services.

"This agreement marks an important milestone for Centrica's biomethane activities in the UK. 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."

Kristian Gjerløv-Juel, Director for Renewable Energy Trading and Optimisation

SGN, a leading manager of natural gas and green gas distribution networks in Scotland and the south of England will design, develop and operate the biomethane gas-to-grid sites, which once operational, will produce approximately 125GWh of biomethane annually - enough to heat more than 10,000 UK households.

Biogas will be produced as a by-product of Yorkshire Water's sewage wastewater treatment processes, where Centrica will offtake production from the site and subsequently manage shipping, trading, and balancing of the green gas. Biomethane will be injected into the UK grid to displace natural gas, providing cleaner and more resilient gas supplies that reduces dependency on outside energy imports.

"We're excited to be working alongside SGN Commercial Services and Centrica Energy Trading to make best use of the biogas Yorkshire Water produces through sewage treatment. We already benefit from biogas-fueled renewable energy generation, but this project demonstrates our commitment to using markets to improve our operational efficiency, reduce customer bills and facilitate carbon emissions reductions in the wider economy."

Tom Hall, Head of Bioresources, Yorkshire Water

Building on over 20 years of experience and their leading position in the Danish biomethane market, as an established market participant Centrica provides the scale and trading expertise necessary to deliver as a long-term stable partner for Yorkshire Water. Pursuing an ambitious commercial strategy to grow biomethane activities, Centrica is working to deliver an important contribution to accelerating biomethane production across Europe and the UK, supporting the ambitions set in REPowerEU to grow production of biomethane from 30TWh to 340TWh by 2030.

Kristian Gjerløv-Juel, Director for Renewable Energy Trading and Optimisation at Centrica Energy Trading commented:"This agreement marks an important milestone for Centrica's biomethane activities in the UK. 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."

Tom Hall, Head of Bioresources at Yorkshire Water, said: "We're excited to be working alongside SGN Commercial Services and Centrica Energy Trading to make best use of the biogas Yorkshire Water produces through sewage treatment. We already benefit from biogas-fueled renewable energy generation, but this project demonstrates our commitment to using markets to improve our operational efficiency, reduce customer bills and facilitate carbon emissions reductions in the wider economy."

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Centrica plc published this content on 24 July 2023 and is solely responsible for the information contained therein. Distributed by Public, unedited and unaltered, on 24 July 2023 08:53:04 UTC.