.png)
The Ofwat Innovation Fund, which was launched in 2020 with an initial £200 million, has already supported 93 collaborative projects tackling water sector challenges. These include innovative “pipebots” that detect cracks in pipes to curb pollution, water butt initiatives to prevent heavy rain from overwhelming sewers, and blueprints for restoring seagrass habitats.
Other initiatives involve citizen science efforts to monitor river health and advanced sewage sludge treatment to eliminate “forever chemicals.”
The regulator is extending and doubling the fund to £400 million, running through 2030. This move aims to encourage water companies to collaborate with local authorities, conservation groups, and private companies to develop solutions to critical issues like pollution and water resource management.
The announcement comes during heightened scrutiny of the water sector over environmental degradation, rising bills, and executive bonuses. In December, Ofwat approved a 36% average increase in water bills over the next five years, pre-inflation, to fund a £104 billion upgrade to the sector. This upgrade includes new reservoirs, measures to reduce sewage pollution, and the expanded innovation fund, which will cost households in England and Wales approximately £2.13 annually between 2025 and 2030.
Chancellor Rachel Reeves has praised the fund, highlighting it as a key example of how regulators can foster growth while addressing pressing environmental challenges.
Helen Campbell, senior director for sector performance at Ofwat, said: “There’s no question that the water sector faces many urgent challenges – reaching net zero emissions, ending the overuse of storm overflows, preventing leaks, and adapting to the impact of climate change – all while ensuring customers are adequately served and enabling economic growth.
“Our £400 million commitment to continued investment in innovation will support highly collaborative projects to develop and deploy solutions to these enormous challenges.
“While the first five years championed nascent technologies and new approaches to demonstrate their future potential, the next five years must see them scale and deliver a lasting and beneficial impact for customers, society and the environment.”
Natalie Wadley, chief executive of ChangeMaker 3D, secured money for a project with partners developing 3D concrete printing of infrastructure and assets; said the funding was “game-changing” for the business and the development of “Printfrastructure” to help the water sector.
She added: “This project has truly delivered several UK firsts, pushed all of the technology boundaries and demonstrated how we can return tangible value to water customers.”
The Ofwat Innovation Fund will be delivered by innovation prize experts Challenge Works in collaboration with design and engineering company Arup and innovation consultancy Isle Utilities.
Comments