Twenty projects have been named finalists of the Water Innovation Fund’s second Water Discovery Challenge, which aims to accelerate the development and adoption of innovations to support the water sector’s greatest challenges.
In a bid to introduce fresh thinking and help entrants break into the water industry, the chosen projects have been developed by innovators from a multitude of sectors, including academia, energy, agriculture and farming, and environmental services.
Each finalist has received £100,000 in seed funding, in addition to a comprehensive package of support. This includes seven months of mentorship to support teams to convert ideas into successful business opportunities; sessions on data and commercial development; and expert guidance from water companies.
Through this support, finalists will be able to push their ideas further and test the feasibility of the solutions in real-world settings at scale.
The chosen projects include DWS: Nature-Based Tertiary Wastewater Treatment for Safe Water Reuse, led by Daphne Water Solutions Limited, in partnership with ATG Group. The project uses tiny water fleas called Daphnia to remove forever chemicals, pharmaceuticals and microplastics from wastewater. Daphnia are about the size of a grain of rice, and are capable of naturally capturing these contaminants, removing the need for chemical treatment or energy input. This helps water companies to meet tightening regulations while reducing costs and environmental impact.
Tackling the issue of sewage spills, Rheya Labs: Smart Batteries to Eliminate Sewage Pumping Station Spills, led by Rheya Labs Limited, is developing back-up batteries for sewage pumping stations to prevent raw sewage from spilling into the environment during power failures. In the event of an outage, the battery instantly takes over to keep the pumps running and prevent pollution. Simultaneously, the system uses machine learning to analyze data from pumps and predict the wider root causes of spills before they happen. This provides early warnings and insights into the condition of assets. By eliminating sewage spills and pre-empting network failures, the project delivers cleaner rivers and a more resilient wastewater infrastructure.
Lunasonic - Ultrasound for Catalyst-Free Destruction of Persistent Organic Pollutants, led by University of Glasgow, is developing ultrasonic treatment technology to destroy organic pollutants in water. Using only sound as an input, the technology creates microscopic bubbles that break down forever chemicals and other contaminants into carbon dioxide and naturally-occurring minerals. The technology was originally developed to purify water frozen in the soil around the lunar south pole to provide a clean water supply for a future moon base, as part of Challenge Works’ and the UK Space Agency’s Aqualunar Challenge.
In line with Defra’s consultation on the current Sludge (Use in Agriculture) regulations, Entoremediation - Utilizing Black Soldier Fly Larvae to clean sewage sludge and screenings, which is led by Entocycle Ltd, has developed a process that uses larvae from black soldier flies to remove contaminants from sewage sludge and wastewater. These larvae are known to have the ability to efficiently convert organic waste into nutrient-rich fertilizer, and so this project will test whether they can break down contaminants more effectively and at less cost than current methods.
Jo Jolly, Director, Innovation, Ofwat, said:
“With our rapidly changing climate, it is more vital more than ever that we double down on our efforts to create a water system able to support lives and livelihoods, including for future generations we will never meet. In opening our doors to innovators outside the water sector, we have invited fresh perspectives to tackle head-on some of our greatest challenges. With this line-up of finalist projects, we are reminded that tackling the climate and nature crises isn’t limited by intellect or creativity. The array of new ideas from new players is astounding. The challenge is getting these ideas delivering impact on the ground, with the sense of urgency these times need.”
Ben Taylor, Co-Founder of Rheya Labs, said:
“Sewage pollution is an ever-growing crisis across the UK, and power resilience at pumping stations is one of its major, yet hidden, causes. We have developed systems specifically for water utilities to support the elimination of these power-related spill risks before they occur. The support from the Water Innovation Fund is a vital catalyst for our work, providing the platform needed to deploy our technology across the wider network and help protect our environment."
Prof Luisa Orsini, Co-Founder and CEO, Daphne Water Solutions Limited, said:
"Daphnia have been dormant in lake sediments since before the Industrial Revolution – and we have worked out that these tiny freshwater crustaceans function as biofilters to remove persistent pollutants from wastewater. Our nature-based solution fits within existing processes, and does not require additional or energy, helping to enable safe, low-carbon water reuse. The Water Discovery Challenge will help us accelerate commercial deployment of our technology, so that we can protect rivers, biodiversity and human health.”
Other finalists include Open Hydro: Satellite-ML Predictive Flux Modelling for Early T&O Detection and Reservoir GHG Management, led by Open Hydro Ltd. The project supports drinking water quality by using satellite data to spot early signs of algae problems in reservoirs before they can be seen from the ground. The system detects gases such as carbon dioxide and methane as they leave the water surface, helping water companies act up to two weeks earlier, reducing the need for costly treatment, and protecting the taste and smell of drinking water.
Applying Quantum Information and Computing to Water Networks, led by Quantum Base Alpha (QBA), in partnership with University of Edinburgh, is using quantum computing and machine learning to develop a more powerful way to predict leaks and manage water networks. By applying advanced algorithms to water company data, the project aims to spot patterns that conventional systems may miss, helping water companies to find leaks earlier, optimize water flow, and prepare for future use of quantum sensors.
Resilient Energy Efficient Wastewater Treatment with Microbial Fuel Cells: ERES-WWTP, led by the University of South Wales, is creating a next-generation wastewater treatment system that cleans sewage while turning the organic material within it into renewable electricity, by using the natural electrochemical processes of bacteria. The technology can operate reliably even when wastewater flows change, or the power grid is unstable, offering the water sector a resilient, efficient and sustainable way to manage wastewater.
In April 2027, as many as 10 of the finalists will go on to win up to £550,000 each to further develop and test their ideas, and will be offered an additional five-month package of non-financial support and sector mentorship, to maximize the chance of the innovations launching and succeeding in the water sector.
The challenge is run by innovation prize experts Challenge Works, part of Nesta, in partnership with Arup and Isle Utilities, and is part of a series of competitions from the Water Innovation Fund.
The Water Innovation Fund is a key pillar in Ofwat’s mission to drive innovation that ensures the water sector is ready for the challenges of the future and results in better outcomes for customers and the environment.