WIREDGOV

Tuesday 20 May 2025 (London) – Pioneering technological solutions to some of the biggest challenges facing the water sector have won a share of £42 million from the Ofwat Innovation Fund’s Water Breakthrough Challenge. 

• The Ofwat Innovation Fund’s Water Breakthrough Challenge awards more than £42 million to innovations solving major challenges in the water sector.
• Winners include water quality monitoring drones, robots to scale chemical-free water filtration, and micro-satellites to detect leaks from space.
• Winning projects see water companies working with 70 partners, from world-class universities, engineering powerhouses, environmental charities and NASA.
• Over 10 years, the Ofwat Innovation Fund is investing £600 million in innovative projects and technologies to benefit the environment, society and customers

The Ofwat Innovation Fund is investing £600 million between 2020 and 2030, with winners of this year’s challenge working with promising innovators from across different sectors and around the world to develop solutions to the water sector’s biggest challenges.

The 16 winning projects have shared £42.7 million in funding to scale solutions to some of the sector’s biggest challenges. In addition, winners are required to put up at least an additional 10% themselves, taking the total value of money going into winning projects to £48.8 million. Winners are required to share the lessons learnt from funded projects openly to ensure progress can be built upon by all water companies.

Smart Skies, Healthy Waters has been awarded £6 million, for its project to create a ‘drone- and lab-in-a-box’ that provides near-real-time, on-site results and lab-grade analysis of coastal bathing water quality.

Smart Skies, Healthy Waters: a ‘drone- and lab-in-a-box’ that provides near-real-time, on-site results and lab-grade analysis of coastal bathing water quality

Using automated drones, robotics and cutting-edge sampling techniques, Smart Skies, Healthy Waters aims to greatly improve coastal water monitoring. This capability will significantly increase the monitoring and sampling frequency, cutting the time to see results from up to three days to a matter of minutes, meaning customers can access near live updates on bathing-water quality rather than having to wait.  The partnership sees Northumbrian Water working with Newcastle University, drone experts Skyports Drone Services, real-time sensor specialists Proteus Instrument and data experts Makutu Dot IO.

A further £1.3 million has been awarded to Space Eye to transform the use of satellite technology for the water industry. The project will include the design, launch and operation of micro-satellites to provide continual imaging of the entire UK water pipe network.

Space Eye: the design, launch and operation of micro-satellites to provide continual imaging of the entire UK water pipe network

Machine-learning algorithms will enable Space Eye to quickly locate leaks in pipes that become visible by rising to the surface, identify water wastage from unauthorised or unnecessary water use, and analyse surface water to check whether harmful chemicals are impacting water quality, to help water companies fix problems quickly, resulting in fewer delays for customers affected by water supply issues and minimising disruption.  Five water companies in England and Wales, led by South Staffordshire Water, are teaming up with US micro-satellite experts Quub, the University of Wolverhampton, Scottish Water and Spring – the centre of excellence for water sector innovation.

SandSCAPE – a collaboration between four water companies, led by Thames Water – has also been awarded £2 million to test at full scale tank-like robots (up to 5 metres in length) that make chemical-free ‘slow sand filtration’ more efficient. Slow sand filtration is a highly effective, nature-based solution for cleaning water, but has a built-in inefficiency because of the need to regularly stop and drain the sand filters of water to remove the sand layer containing the particles captured when making the water fit to drink.

SandSCAPE: testing full scale tank-like robots that make chemical-free ‘slow sand filtration’ more efficient

The robots being tested by SandSCAPE will trial underwater cleaning of sand filters while in operation. Effective, chemical-free alternatives for water purification will benefit the environment while maintaining the highest water quality standards for customers.

David Black, CEO of Ofwat said:

“Water underpins our society and economy, and the water sector faces a range of challenges requiring urgent solutions. The Ofwat Innovation Fund was established five years ago to incentivise the water sector to collaborate with partners across industry, charities, and academia to accelerate the pace of transformation and create lasting benefits for customers and the environment.

“The level of ambition of this year’s winners – including deploying robots, drones, satellites and state-of-the-art artificial intelligence – is remarkable. The 16 winning projects involve 15 water companies working with 70 partners – from world-class universities to engineering powerhouses, environmental charities and even NASA. We are supporting these projects to prove their impact so that they can be scaled, not only here in England and Wales, but exported around the world as a driver of economic growth”.

Richard Warneford, Wastewater Director, Northumbrian Water (Smart Skies, Healthy Waters lead partner) said:

“This project provides a ground-breaking opportunity to harness new technologies to enable more frequent monitoring of our bathing waters. This project will be a world first and a step change for our sector, helping to ensure healthier waters for our customers communities and our environment.”

Caroline Cooper, Strategy and Regulation Director, South Staffordshire Water (Space Eye lead partner), said:

“The water and wastewater pipe network in the UK is long enough to reach beyond the moon. Satellite technology can help us keep an eye on the whole network at once, while machine learning algorithms can identify anomalies quickly – like leaks in remote areas – so that water companies can dispatch engineers to fix them. Thanks to the Water Breakthrough Challenge we aim to launch operational micro-satellites by 2026.”

The increasing deployment of artificial intelligence to solve challenges in the water sector is also reflected in this year’s winners. 

PEDAL, led by South West Water in collaboration with NASA Bioscape, the University of Exeter, Cardiff University and others, has been awarded £2 million to use satellite and drone remote sensing, artificial intelligence, conventional water quality monitoring, and input from citizen science to build a digital twin that can forecast Harmful Algal Blooms (HABs) which lead to poor water quality and ecosystem loss, enabling the water companies to take preventative action faster.

£1 million has been awarded to TORCH, led by Anglian Water in collaboration with partners including Peterborough City Council, the universities of Sheffield and Exeter and Noventa Energy, to use AI to enable heat recovery from sewers and wastewater facilities for re-use in district heating networks – where heat is supplied to consumers from a central source via a network of underground pipes – providing lower cost heating, cutting carbon emissions and helping to improve the performance of sewer assets.

Meanwhile £1.9 million has been awarded to a collaboration between Yorkshire Water, The Rivers Trust, Surfers Against Sewage, British Standards Institute, UnifAI Technology, and United Utilities. The Site-Agnostic AI Models for Water Quality and Safety project will use AI and data collected from low-cost sensors that continually monitor bacteria at 20 inland bathing-sites. It aims to create a location-agnostic “out-of-the-box” AI model that does not need to be trained on localised data, to enable real-time monitoring of diverse bathing sites and predictive-analytics to transform water quality management.

The Ofwat 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. It is delivered by innovation prize experts Challenge Works (part of the Nesta group), in partnership with Arup and Isle Utilities.

To find out more about all 16 of the winners of the fifth Water Breakthrough Challenge or to discover previous winners, visit waterinnovation.challenges.org

Notes to Editors

For all media enquiries, please contact Andrew McKay and Zofia Tanaka on waterinnovation@seven-consultancy.com or call +44 (0)20 7754 3610

Full List of Water Breakthrough Challenge 5 winners

Metagenomics: Making Microbes Matter – led by United Utilities with Newcastle University, Yorkshire Water, Northumbrian Water, Anglian Water – £1,349,030. Metagenomics uses rapid gene-sequencing in place of slower lab-based culturing to identify what specific microorganisms are in a sample – these can be linked to site health and performance at wastewater treatment centres. It will be a huge step for understanding the composition of wastewater, to better measure and reduce process emissions, as well as delivering value for customers by increasing site efficiency and effluent quality.

Microwave reactivation of Granular Activated Carbon – Building capacity to manage PFAS – led by Severn Trent Water with CPL – Puragen, University of Nottingham, Cranfield University and others – £1,910,585. Developing an industrial-scale microwave solution that creates a faster, cheaper and more sustainable way to remove PFAS – or “forever chemicals” – from drinking water than using existing techniques such as Granular Activated Carbon (GAC). If powered by renewable energy, it can meet the growing demand for GAC without increasing carbon emissions.

Net Water PositHyve – led by Northumbrian Water with Waterwhelm, AtkinsRealis, University of Bath, SSE Thermal and others – £1,999,993. By sustainably producing recycled water using waste heat and wastewater, this project will implement and scale a new forward osmosis (FO) technology to increase water availability for people and businesses. The product water will be used by Bran Sands Wastewater Treatment Works to fulfil its industrial water demands. Implementation across the water sector will address increasing industrial water demands, including for hydrogen production, and the need for sustainable water re-use to achieve long-term water resilience and security.

Next-Gen Digestion – led by United Utilities with Jacobs UK, Imperial College London, Cranfield University and others – £5,124,360. Next-Gen Digestion will enable water companies to generate additional biogas, a gas product from the breakdown of organic matter during wastewater treatment and reduce the volume of residual biosolids (treated sludge). It will convert biogas into energy which can be used to power treatment processes, reducing operational costs for water companies and their customers.

PEDAL Prediction and Early Detection of Algal blooms in lakes and reservoirs – led by South West Water with University of Exeter, NASA Bioscape, Cardiff University, Environment Agency and others – £1,949,171. Using satellite and drone remote sensing, artificial intelligence, conventional water quality monitoring, and input from citizen science to build a digital twin that can forecast Harmful Algal Blooms (HABs), which lead to poor water quality and ecosystem loss, enabling the water companies to take preventative action faster.

PRIME (Power Resilience through Integrated Microbial Electrolysis) – led by Severn Trent Water with Wastewater Fuels, Warwick Manufacturing Group, Warwick University and others – £1,761,291. Trialling Microbial Electrolysis Cells to treat wastewater and produce hydrogen, creating sustainable energy. With increasing extreme weather causing more frequent power outages, using hydrogen to generate electricity directly at treatment plants or pumping stations could help keep essential water treatment services running during storm disruption.

PyroPlas: Transforming sewage sludge to sustainable transport fuels and materials – led by Severn Trent Water with Hybrid Gasification, Jacobs UK, Durham University and others – £9,800,480. Revolutionising sludge management by trialling a combination of processes to convert biosolids into high-value sustainable aviation and marine fuels, biochar (that improves soil health) and carbon materials (used in water purification and energy storage), as well as removing harmful substances like PFAS and microplastics.

Rapid Cryptosporidium detection to improve water safety and protect public health – led by Severn Trent Water with FluiDect and others – £1,605,496. Developing a new, automated system that enables the water industry to monitor water samples for cryptosporidium, a potentially life-threatening parasite that naturally exists in the environment and can contaminate water systems. The system reduces the waiting time to get results from testing for cryptosporidium from around two days to a few hours.

Recovering energy from water to heat communities – led by South Staffordshire Water – partners include Onsite energy, University of Cambridge, WSP, Carrier, Spring, and others – £1,440,000. Designing and testing a solution that removes heat from water held in large water pipes and delivers it to buildings as a sustainable energy source. Any community building next to large water pipes could benefit, meaning potential advantages for customers and the environment.

SandSCAPE Science and Novel Devices for Sustainable Cleaning and Productivity Enhancement – led by Thames Water with Affinity Water, Northumbrian Water, South West Water – £1,968,390. Testing at full scale tank-like robots (up to 5 metres in length) that make chemical-free ‘slow sand filtration’ more efficient. Slow sand filtration is highly effective but has a built-in inefficiency because of the need to regularly stop and drain the sand filters of water to remove the sand layer containing the particles captured when making the water fit to drink. The robots being tested will trial underwater cleaning of sand filters while in operation.

Site-Agnostic AI Models for Water Quality and Safety – led by Yorkshire Water – partners include UnifAI Technology, The Rivers Trust, British Standards Institution, Surfers Against Sewage, and others – £1,906,702. Monitoring bacteria at 20 inland bathing sites by using AI and low-cost sensors. Unlike recent approaches requiring bespoke, localised AI-models for each location, this project will gather diverse water quality data to develop “site-agnostic” AI-models that work “out-of-the-box” across diverse sites.

Smart Skies, Healthy Waters – led by Northumbrian Water with Skyport’s Deliveries Limited t/a Skyports Drone Services, Proteus Instruments, Newcastle University and others – £5,994,280. Monitoring coastal bathing water quality by creating a ‘drone and lab-in-a-box’ system. Using automated drones, robotics, and water sampling techniques, the project improves the efficiency of coastal water monitoring, therefore safeguarding customers, and environmental wellbeing.

Space Eye – led by South Staffordshire Water – partners include Quub Inc. USA, University of Wolverhampton, Spring, and others – £1,314,000. Transforming the use of satellite technology and space science for the water industry, including the design, launch and operation of micro satellites to provide updated imagery every few hours, covering the entire UK water pipe network. Machine-learning algorithms combined with data science will allow water companies to quickly locate leaks, water wastage, and track water purity.

Stream – Scale & Reach – led by Northumbrian Water in partnership with 15 water companies, plus Sia Partners UK, Aiimi, Open Data Institute, Icebreaker One, Pinsent Masons, Cosan Croga and Esri – £1,582,464. Stream is a collaboration between 16 UK water companies to unlock water data to deliver value to customers, society and the environment. By facilitating the publication of Open and Shared data from the water sector, Stream aims to enhance transparency, engagement and trust, and provide reusable data and technology to accelerate future innovation projects.

The Rainwater Management Platform (RMP) – led by Wessex Water with HR Wallingford, Groundwork, CIWEM, Arup, Environmental Protection Group and others – £1,980,000. Delivering a free-to-access digital platform to transform the UK’s approach to rainwater management, providing planning, design, construction and maintenance good practice to accelerate delivery of sustainable drainage systems (SuDS), reduce costs and improve quality. The project hopes to minimise discharges to sewers, help prevent pollution, promote rainfall as a resource, and enhance climate resilience.

Tool for Optimising decisions for Recovery of sewer Catchment Heat (TORCH) – led by Anglian Water with Noventa Energy, University of Sheffield, Exeter University, Peterborough City Council and others – £973,034. An AI-assisted decision tool enabling optimal heat energy recovery from sewers and water recycling centres, assisting the planning process of District Heat Networks – where heat is supplied to consumers from a central source via a network of underground pipes – enabling lower cost heat energy and a reduction in carbon, and maintaining or facilitating improved performance of sewer assets.

About the Ofwat Innovation Fund

The Ofwat 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. It is delivered by challenge prize experts Challenge Works in partnership with Arup and Isle Utilities. The Innovation Fund forms part of Ofwat’s approach to innovation in the water sector. Ofwat with the Environment Agency and Drinking Water Inspectorate also runs StreamLine, a joint service for innovators and businesses to get informal regulatory advice. To contact Ofwat’s press office, please call 0121 644 7700.

About Challenge Works

Challenge Works is a global leader in the design and delivery of high-impact challenge prizes that incentivise cutting-edge innovation for social good. In the last 10 years, we have designed and delivered 101 prizes, distributed more than £310 million in funding and engaged with 16,000 innovators. Challenge prizes champion open innovation through competition. We specify a problem that needs solving, but not what the solution should be. We offer large cash incentives to encourage diverse innovators to apply their ingenuity to solving the problem. The most promising solutions are rewarded with seed funding and expert capacity building support, so that they can prove their impact and effectiveness. The first or best innovation to solve the problem wins. This approach levels the playing field for unknown and previously untested innovators so that the best ideas, no matter their origin, are brought to bear on the most difficult of global challenges.

About Arup

Dedicated to sustainable development, Arup is a collective of designers, consultants and experts working globally. Founded to be humane and excellent, we collaborate with our clients and partners using imagination, technology, and rigour to shape a better world. Together we help our clients solve their most complex challenges – turning exciting ideas into tangible reality as we strive to find a better way and shape a better world. With a community of over 1700 water professionals, Arup is leading global thinking across key areas like innovation, resilience, net zero carbon and sustainable water management. Find out more: www.arup.com

About Isle Utilities

Isle is a global team of independent scientists, engineers, business and regulatory experts with a common drive to make a positive environmental, social and economic impact through the advancement of innovative technologies, solutions and practices. Our passion and expertise in technology and innovation enables us to connect expertise, investment and inspired ideas across the globe. At the core of all our activities is our ambition to make the world a better place. Find out more: www.isleutilities.com