Centrica, a British multinational energy and services company, is partnering with blockchain energy startup LO3 to test blockchain potential in peer-to-peer (p2p) energy trading.

The project will see the roll out of the technology in Centrica’s Local Energy Market (LEM) – a £19 million programme that aims to explore flexible, smart energy solutions.

“This is an exciting opportunity for us to test blockchain technology beyond the theoretical and put it into practice, developing innovative new solutions that will empower consumers in the UK, North America and beyond to take control of how they engage with energy,” Mark Hanafin, Chief Executive of Centrica Business said.

Blockchain technology provides a secure platform for consumers to buy and sell from each other, giving them greater control. According to the official release, the trial will involve testing a range of energy transactions including multi-party p2p trading across 200 business and residential participants using LO3’s new Exergy platform.

While the effort marks Centrica’s first blockchain initiative in the UK, the company is also working with LO3 on a trial in North America to deliver the world’s first micro-hedging market for business customers. Centrica’s North America Business unit, Direct Energy Business, will use LO3’s platform to offer large commercial and industrial companies the opportunity to place their own orders for customised power hedges that are then matched with the best offer in a competitive system.

“Exergy is designed to empower new prosumers while enabling traditional industry players to shift business models and find their place in the energy market of the future. Our partnership with Centrica and Direct Energy will trigger adoption for Exergy at a scale that will bring trustworthy disruption to the industry,” Lawrence Orsini, CEO of LO3 Energy, said.