Ofwat’s latest innovation competition announced today include an initiative that could see farmers reimbursed for storing water on their land to help manage drought and a leak-monitoring technique inspired by ground-stability measurement systems.

The winners are amongst 16 organisations awarded funding from the third Water Breakthrough Challenge, a competition that invited solutions with potential to deliver wide-scale, transformational change.

Farmers could soon be reimbursed for creating water storage ponds or water “batteries” as part of an innovative drought-prevention project that has today received funding from Ofwat’s £40 million Innovation Fund.

With droughts affecting the UK for much of last summer, the project, from Westcountry Rivers Trust and South West Water, will not only contribute to better hydrated wetlands, woodlands and fields, but can help farms manage water demand through dry weather, as well as boost aquatic biodiversity.

The initiative will work with farmers to create stores of water – both in soil “sponges” as well as lakes and ponds – that can be “re-charged” through wet weather, then drawn on through ever-more common dry seasons, to the benefit of either the farmers themselves, or local communities. The water “batteries” could form the basis of a smart water grid, improving the resilience of the water supply in the wake of climate change – in the same way solar batteries in homes store excess electricity that can be sold back to the National Grid.

Dr. Laurence Couldrick, CEO, Westcountry Rivers Trust said:

“Restoring natural sponges such as healthy soils, woodlands and wetlands can make a huge difference to agricultural water availability during dry seasons, but the creation of additional on-demand storage has even more potential. Just like we might use a battery to capture solar power, and either use it ourselves or sell it back into the grid as needed, trapping and maintaining additional supplies of water on farms truly has potential to combat the effects of drought on an essential British industry – creating a smart water grid that can help farmers and the local communities.”

The competition is also recognising a solution that adapts ground-stability monitoring technology to tackle leakage across England and Wales – a challenge which currently equates to the loss of over three billion litres of water a day. The project will use the existing network of fibre-optic cables (like those that host broadband) to report on minute changes in vibration patterns.

The process, which is already used to monitor ground stability as part of the rail network, can also indicate even the smallest loss of water to catch leaks early. The technique is cheaper and more environmentally-friendly than current monitoring practices.

The winners also include the creation of the UK’s first ever, full-scale, carbon-neutral wastewater works. This state-of-the-art experiment from Severn Trent will bring together cutting-edge carbon-reduction technology for wastewater and test it at scale, pushing the limits to prove how the sector can slash its environmental impact – one of the core goals of this pocket of Ofwat’s funding. The project will integrate several promising retrofittable technologies in an existing urban wastewater treatment plant and create a data copy of all processes (‘digital twin’) to monitor impact.

David Black, CEO, Ofwat said:

“The water sector has faced mounting pressure over systemic challenges related to the environment and society, while the climate around us continues to drastically change shape. That’s why we’re funding ground-breaking innovations with potential to help us save and reuse water and wastewater products, while supporting wider society.”

The Water Breakthrough Challenge is part of a series of competitions from Ofwat, run by Challenge Works with Arup and Isle Utilities, designed to drive innovation and collaboration in the sector to benefit individuals, society and the environment.

The 11 winners of the Water Breakthrough Challenge 3 Catalyst Stream are:

• Artificial intelligence for algal monitoring – led by Dwr Cymru Welsh Water – £385,159
• Climate Resilience Demonstrator (CReDo) – Extreme Heat Scenario– led by Anglian Water Services – £913,029
• Dark Fibre 2 – led by Severn Trent Water – £1,332,205
• Hydro Powered Concentric Smart Meter– led by Northumbrian Water – £874,954
• The world’s first Ecological Digital Twin– led by Anglian Water Services – £1,200,000
• Universal access point for water (UAP4W) – led by SES Water – £224,010
• Using science and nature to end sewer misery – led by Northumbrian Water Limited – £939,377
• Water efficiency in faith and diverse communities – led by South Staffordshire Water Plc – £270,000
• Water industry printfrastructure (WIP) – led by United Utilities – £1,543.610
• Water Net Gain – led by South West Water Limited – £999,800
• Water Literacy – led by Northumbrian Water – £864,484.000

The five winners of the Water Breakthrough Challenge 3 Transform Stream are:

• Biopolymers in the circular economy (BICE) – led by United Utilities – £6,149,362
• Designer liner – led by Yorkshire Water – £3,251,283
• Mainstreaming nature-based solutions to deliver greater value – led by United Utilities – £8,028,022
• Net Zero Hub– led by Severn Trent Water – £10,000,000
• Stream – led by Northumbrian Water – £3,973,205