The Ofwat Innovation Fund has launched the sixth Water Breakthrough Challenge, offering up to £50 million in funding for collaborative projects that address the biggest challenges facing the water sector.
This is the first competition of AMP8, following the extension of the Ofwat Innovation Fund to 2030 with a total of £400 million of innovation funding. Entries are invited from water companies in England and Wales working in partnership with businesses, universities, charities and innovators from across sectors worldwide.
Projects may focus on achieving net zero, restoring nature, reducing leakage, tackling pollution, or lowering costs for customers. Solutions can range from advanced technologies and novel business models to new commercial practices, but must be led by a licensed water company.
The Water Breakthrough Challenge is delivered by Challenge Works in partnership with Arup and Isle Utilities. It includes two funding streams:
- Catalyst stream: Awards between £150,000 and £2 million. Entries close 6 January 2026.
- Transform stream: Awards between £2 million and £10 million. Stage 1 entries close 29 September 2025, with Stage 2 beginning 17 November 2025. Winners will be announced in May 2026.
Dr Jo Jolly, Ofwat’s Director of Environment and Innovation, said: “Since 2020, the Ofwat Innovation Fund has awarded £190 million to 109 projects involving more than 250 partners around the world. In this sixth Water Breakthrough Challenge, we’re drawing on diverse strengths and skills to develop ambitious answers to the challenges the water sector faces.”
Previous winning projects have included robots to improve chemical-free slow sand filtration, drones for coastal water quality monitoring, and AI to predict algal blooms. Partners in earlier rounds included NASA, international universities, and charities such as the Rivers Trust and Surfers Against Sewage.
The consultation period for entries is open until 29 September 2025 for the Transform stream and 6 January 2026 for the Catalyst stream. More details, including entry criteria and application forms, are available on the Water Innovation Challenges website.
