The company will undertake heat mapping and master planning to identify heat network opportunities in both Greater Manchester (GM) and the Leeds City Region.
It is understood various cities are looking to find low to zero carbon sources of energy in local areas.
Arup will help GM to deliver its carbon reduction target of 48% by 2020 via a number of priority energy projects.
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Works include developing decentralised energy schemes and progressing options to business case level in Manchester, Salford, Bury and Tameside.
Julian Packer, Low Carbon Investment Director, GM Combined Authority, said: "We have enjoyed and continue to enjoy a close working relationship with colleagues at Arup as we develop these strategically important heat network projects in Greater Manchester.
Mark Anderson, Associate Director, Arup, added: "We are delighted to be part of the next generation of heat network development across the UK. Our teams have been at the forefront of the field for years and we look forward to working with Greater Manchester and other City Regions within the Northern Powerhouse to roll out low and zero carbon heat network programmes to help shape a better future."
(LM/MH)
