The Ofwat Innovation Fund has launched its sixth Water Breakthrough Challenge, injecting up to £50 million into collaborative innovations aimed at tackling the water sector’s most pressing challenges. This initiative underscores a strategic shift in how the sector approaches problem-solving, emphasizing cross-sector partnerships and bold, transformative ideas.
The challenge invites a broad scope of entries, from net-zero achievements to ecosystem protection, leak prevention, pollution control, and cost reduction for customers. Water companies are encouraged to collaborate with businesses, charities, academic institutions, and civil society organizations outside the water sector. This approach fosters diverse solutions, leveraging advanced technology, revolutionary commercial models, and game-changing business practices.
The competition is structured into two streams: the Catalyst stream, awarding between £150,000 and £2 million, and the Transform stream, awarding between £2 million and £10 million. The Catalyst stream closes for entries on 6 January 2026, while the Transform stream’s first stage closes on 29 September 2025, with a second stage opening on 17 November 2025. Winners will be announced in mid-May 2026.
Dr. Jo Jolly, Ofwat’s Director of Environment and Innovation, highlighted the fund’s impact since 2020, awarding £190 million to 109 projects involving over 250 global partners. She emphasized that innovation drives sustainable economic growth and that cross-sector collaboration fosters novel approaches to industry challenges. “In this sixth Water Breakthrough Challenge, we’re driving ever more boldly at this goal: drawing on the diverse strengths and skills of great minds to develop novel and ambitious answers to the challenges the water sector face,” she said.
Natalie Wadley, CEO of ChangeMaker 3D, a partner in the Water Industry Printfrastructure project, shared her experience. “Over the past few years, we have developed, tested and proven to the water sector that 3D printing is an essential transformation tool in meeting crucial milestones and targets over the next 5 years – thanks to the funding awarded through the Water Breakthrough Challenge. It has been game changing for our business.”
The sixth challenge follows the announcement of a £400 million, five-year extension and expansion of the Ofwat Innovation Fund for 2025-2030. This extension includes five annual Water Breakthrough Challenges, two Water Discovery Challenges, and four new competition and funding streams. These include the Water Efficiency Lab, Water Innovations Missions, the Cross-sector Challenge, and the Implementation Programme.
The Water Breakthrough Challenge 5 winners, announced in May 2025, featured projects like robots for chemical-free filtration, drones for coastal water quality monitoring, and AI for predicting algal blooms. Partners included NASA, multiple universities, and charities like the Rivers Trust and Surfers Against Sewage.
This initiative could significantly shape the water sector’s development by accelerating the adoption of innovative technologies and practices. By fostering cross-sector collaboration, the challenge encourages diverse perspectives and solutions, potentially leading to more sustainable and efficient water management. The emphasis on personalised water usage insights and the reduction of water demand highlights a proactive approach to addressing future water scarcity challenges. The sector’s willingness to invest in and scale innovative solutions could set a new standard for how water utilities approach problem-solving and service delivery.