Ofwat Water Challenge
Ofwat launches £50m Water Breakthrough Challenge to combat drought and transform water sector
The UK water sector is facing significant challenges, with more than half of businesses reporting water-related issues, yet many lack formal management plans. Ofwat has launched the seventh 'breakthrough challenge' of its Water Innovation Fund, providing up to £50m for projects that help the sector adapt to droughts and climate risks.
According to Dr Jo Jolly, Ofwat's Director for Natural Assets, Environment and Innovation, the breakthroughs needed to address these challenges will come from radical collaboration across sectors. The challenge aims to find innovative solutions that can repair the environment, strengthen the economy, and help communities thrive.
Water Sector Challenges
The water sector is under pressure, with water prices surging by 20% year-on-year in the UK. A recent report found that 63% of UK businesses are facing significant water-related challenges, including rising costs, scarcity, and regulatory pressure. However, only 28% of these businesses have a formal water management plan in place.
Funding and Investment
The Water Innovation Fund is a £600m, 10-year initiative to help the water sector meet the needs of customers while responding to environmental challenges. Since 2020, the fund has invested £251m in 156 projects. The current challenge will provide funding through two streams: a Catalyst stream for partnerships, offering £150,000 and £2m, and a Transform stream, offering £2m and £10m.
Innovative Solutions
The challenge is looking for innovators who can push boundaries and challenge convention. One example of an innovative solution is the use of cold plasma to disinfect water, an alternative to traditional chlorine-based disinfection processes. This technology, developed by Anamad, uses an electrical impulse to disinfect water and has received funding through the Water Discovery Challenge.
The Water Breakthrough Challenge is open for entries, with the Catalyst stream closing on 5 January and the Transform stream closing on 16 November. Winners will be announced in May 2027. As Dr Jolly notes, the challenge is about finding ideas bold enough to meet the moment and turning them into solutions that can make a real difference. The source of this information is edie.net, which reports on the water sector and environmental challenges.
Ofwat first ran the Water Discovery Challenge in 2023-2024, and at the start of the year, made £7.5m available to accelerate the development and adoption of new technologies that can help the sector to reduce leaks and pollution while cutting emissions. Dr Jo Jolly said: 'No single organisation can solve these challenges alone. The breakthroughs we need will come from radical collaboration across sectors, bringing together expertise, technology, investment and the power of nature itself. From restoring rivers and tackling forever chemicals to mindset shifts such as nature as critical infrastructure, we are looking for innovators prepared to push boundaries and challenge convention.
That is what our Breakthrough Challenges are all about: finding the ideas bold enough to meet the moment and turning them into solutions that repair our environment, strengthen our economy, and help communities thrive.'
