The fifth round of Ofwat’s Innovation Fund Water Breakthrough Challenge has opened today, with approximately £40 million available for projects delivered in partnership with water companies in England and Wales.

Image: 5th Water Breakthrough Challenge timeline

The water sector regulator in England and Wales is seeking ambitious solutions that tackle climate change, pollution, and leakage, as well as ideas to enhance the natural environment, improve services for consumers and increase the resilience of infrastructure. 

The independent judging panel will be looking for ground-breaking, collaborative innovations to help tackle the biggest challenges facing the water sector. Water companies are encouraged to partner with companies, charities, academic institutions and civil society organisations from outside the water sector to create new approaches and diverse solutions to challenges facing the industry.

Initiatives may feature advanced new technology, revolutionary commercial models, or game-changing business practices. Entries must be led by an English or Welsh water company.

Previous Ofwat innovation fund winners include:

• Pipebots – small robots that identify faults from within pipes, a partnership between Sheffield University, Synthotech Ltd and three water companies.
• CaSTCo is a partnership to promote citizen science and revolutionise the way data about the water environment is collected and shared – it includes 12 water and sewerage companies, the Rivers Trust, Zoological Society of London (ZSL), charities and universities.
• Enabling Water Smart Communities – a partnership between six water companies, engineers, house builders, local government and universities – is integrating water management solutions into neighbourhoods to tackle flood risks and manage drought.

Dr Jo Jolly, Ofwat’s Diretor of Environment and Innovation, said:

"Since 2020, the innovation fund has awarded funding to 93 innovative projects that can transform services for customers, communities and the environment. From sewage sludge to leaks, smart water neighbourhoods to supporting vulnerable customers, these partnership-delivered projects are helping to solve the big challenges we face.

"Collaboration is at the core of the innovation fund – among water companies and with organisations outside of our sector. They foster new thinking, new approaches to problems, and result in solutions that may otherwise not have come about.

"In this fifth Water Breakthrough Challenge, we're awarding up to £40m to highly collaborative projects that will make even greater progress in solving our sector's challenges and create a positive legacy for customers and our environment”.

The competition will support initiatives that can deliver significant value aligned with one or more of the following strategic themes:

• Responding and adapting to climate change including achieving the sector ambitions of net zero carbon, zero waste and zero leakage. 
• Protecting and enhancing the environment and natural systems, to protect current and future customers from the impacts of extreme weather and pollution.
• Delivering long-term operational resilience and understanding infrastructure risks to customers and the environment, finding solutions to mitigate these in sustainable and efficient ways. 
• Testing new ways of conducting core activities to deliver the services customers and society need, expect and value both now and in the future. 

Up to £40 million will be awarded through two streams: 

• The Catalyst stream - will award partnerships seeking between £150,000 and £2 million. It will close for entries on 6 January 2025.
• The Transform stream - will award partnership seeking between £2 million and £10 million. First stage entries close on 30 September 2024 with the most promising entries then invited to enter a second stage in mid-November 2024. 

Stage 1 of the Transform stream will open on 9 September and close on 30 September 2024. The Catalyst stream entry period will open on 9 September 2024 and close on 6 January 2025. 

The winners of both streams will be announced in May 2025. 

Ofwat's £200 million Innovation Fund aims to grow the water sector’s capacity to innovate, enabling it to better meet the evolving needs of customers, society and the environment. It is encouraging new ways of working that go beyond business-as-usual innovation practices in the water industry, in particular, increasing and improving collaboration and building partnerships from within and outside the water sector.

Ofwat consulted on its proposals for the innovation fund beyond 2025 earlier this year, including doubling the size of the fund to £400 million for 2025-30. The regulator will announce its final decisions later in 2024.

Click here for more information about the Water Breakthrough Challenge, including details of how to enter.