Twenty projects have been named finalists of the UK Water Innovation Fund’s second Water Discovery Challenge, which aims to accelerate the development and adoption of innovations to support the water sector’s greatest challenges.

In a bid to introduce fresh thinking and help entrants break into the water industry, the chosen projects have been developed by innovators from a multitude of sectors, including academia, energy, agriculture and farming, and environmental services.

Each finalist has received £100,000 in seed funding, in addition to a comprehensive package of support. This includes seven months of mentorship to support teams to convert ideas into successful business opportunities; sessions on data and commercial development; and expert guidance from water companies.

Through this support, finalists will be able to push their ideas further and test the feasibility of the solutions in real-world settings at scale.

Remove forever chemicals

The chosen projects include DWS: Nature-Based Tertiary Wastewater Treatment for Safe Water Reuse, led by Daphne Water Solutions Limited, in partnership with ATG Group. The project uses tiny water fleas called Daphnia to remove forever chemicals, pharmaceuticals and microplastics from wastewater. Daphnia are about the size of a grain of rice, and are capable of naturally capturing these contaminants, removing the need for chemical treatment or energy input. This helps water companies to meet tightening regulations while reducing costs and environmental impact.

Tackling the issue of sewage spills, Rheya Labs: Smart Batteries to Eliminate Sewage Pumping Station Spills, led by Rheya Labs Limited, is developing back-up batteries for sewage pumping stations to prevent raw sewage from spilling into the environment during power failures. In the event of an outage, the battery instantly takes over to keep the pumps running and prevent pollution. Simultaneously, the system uses machine learning to analyse data from pumps and predict the wider root causes of spills before they happen. This provides early warnings and insights into the condition of assets. By eliminating sewage spills and pre-empting network failures, the project delivers cleaner rivers and a more resilient wastewater infrastructure.

Lunasonic – Ultrasound for Catalyst-Free Destruction of Persistent Organic Pollutants, led by University of Glasgow, is developing ultrasonic treatment technology to destroy organic pollutants in water. Using only sound as an input, the technology creates microscopic bubbles that break down forever chemicals and other contaminants into carbon dioxide and naturally-occurring minerals. The technology was originally developed to purify water frozen in the soil around the lunar south pole to provide a clean water supply for a future moon base, as part of Challenge Works’ and the UK Space Agency’s Aqualunar Challenge.

Remove contaminants from sewage sludge and wastewater

In line with Defra’s consultation on the current Sludge (Use in Agriculture) regulations, Entoremediation – Utilising Black Soldier Fly Larvae to clean sewage sludge and screenings, which is led by Entocycle Ltd, has developed a process that uses larvae from black soldier flies to remove contaminants from sewage sludge and wastewater. These larvae are known to have the ability to efficiently convert organic waste into nutrient-rich fertiliser, and so this project will test whether they can break down contaminants more effectively and at less cost than current methods.

Jo Jolly, director, Innovation, Ofwat, said: “With our rapidly changing climate, it is more vital more than ever that we double down on our efforts to create a water system able to support lives and livelihoods, including for future generations we will never meet. In opening our doors to innovators outside the water sector, we have invited fresh perspectives to tackle head-on some of our greatest challenges. With this line-up of finalist projects, we are reminded that tackling the climate and nature crises isn’t limited by intellect or creativity. The array of new ideas from new players is astounding. The challenge is getting these ideas delivering impact on the ground, with the sense of urgency these times need.”

Ben Taylor, co-founder of Rheya Labs, said: “Sewage pollution is an ever-growing crisis across the UK, and power resilience at pumping stations is one of its major, yet hidden, causes. We have developed systems specifically for water utilities to support the elimination of these power-related spill risks before they occur. The support from the Water Innovation Fund is a vital catalyst for our work, providing the platform needed to deploy our technology across the wider network and help protect our environment."

Prof Luisa Orsini, co-founder and CEO, Daphne Water Solutions Limited, said: "Daphnia have been dormant in lake sediments since before the Industrial Revolution – and we have worked out that these tiny freshwater crustaceans function as biofilters to remove persistent pollutants from wastewater. Our nature-based solution fits within existing processes, and does not require additional or energy, helping to enable safe, low-carbon water reuse. The Water Discovery Challenge will help us accelerate commercial deployment of our technology, so that we can protect rivers, biodiversity and human health.”

Other finalists include Open Hydro: Satellite-ML Predictive Flux Modelling for Early T&O Detection and Reservoir GHG Management, led by Open Hydro Ltd. The project supports drinking water quality by using satellite data to spot early signs of algae problems in reservoirs before they can be seen from the ground. The system detects gases such as carbon dioxide and methane as they leave the water surface, helping water companies act up to two weeks earlier, reducing the need for costly treatment, and protecting the taste and smell of drinking water.

Using quantum computing and machine learning

Applying Quantum Information and Computing to Water Networks, led by Quantum Base Alpha (QBA), in partnership with University of Edinburgh, is using quantum computing and machine learning to develop a more powerful way to predict leaks and manage water networks. By applying advanced algorithms to water company data, the project aims to spot patterns that conventional systems may miss, helping water companies to find leaks earlier, optimise water flow, and prepare for future use of quantum sensors.

Resilient Energy Efficient Wastewater Treatment with Microbial Fuel Cells: ERES-WWTP, led by the University of South Wales, is creating a next‑generation wastewater treatment system that cleans sewage while turning the organic material within it into renewable electricity, by using the natural electrochemical processes of bacteria. The technology can operate reliably even when wastewater flows change, or the power grid is unstable, offering the water sector a resilient, efficient and sustainable way to manage wastewater.

In April 2027, as many as 10 of the finalists will go on to win up to £550,000 each to further develop and test their ideas, and will be offered an additional five-month package of non-financial support and sector mentorship, to maximise the chance of the innovations launching and succeeding in the water sector.

The challenge is run by innovation prize experts Challenge Works, part of Nesta, in partnership with Arup and Isle Utilities, and is part of a series of competitions from the Water Innovation Fund.

The Water 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. 

To find out more about all 20 finalists, visit: https://waterinnovation.challenges.org/water-discovery-challenge/ 

About the finalists

Selective Capture of Established and Emerging Micropollutants using Molecular Traps – led by University of Manchester, in partnership with Queen’s University Belfast –  £90,144

Developing precision-engineered molecule traps that selectively bind and extract contaminants that pass through wastewater treatment plants and pollute rivers and lakes. These contaminants include synthetic chemicals from medicines, contraceptives, pesticides, and personal care products, which current methods are insufficient in filtering out. This project is focusing on developing a deployable, regenerable filtration system that is compatible with existing infrastructure.

BioSense: AI-Enabled Monitoring of Biofilm State for Resilient Wastewater Treatment – led by University of Nottingham - £99,928.40

Developing a monitoring platform, BioSense, that provides real-time insight into microbial biofilms that drive wastewater treatment. Wastewater operators currently rely on indirect and delayed measurements, limiting control, increasing energy use, and raising pollution risk. BioSense uses low-cost sensors and AI to monitor the health of treatment microbes in real time, helping operators make better decisions. Designed for easy retrofit, this project is scalable across the UK and will support a more resilient, efficient, and net-zero water sector.

DWS: A Nature-Based Tertiary Wastewater Treatment for Safe Water Reuse – led by Daphne Water Solutions Limited, in partnership with ATG Group - £100,000

Using tiny water fleas called Daphnia to enable safe, low-carbon water reuse. Conventional advanced treatments can remove forever chemicals, pharmaceuticals and microplastics, but they are energy-intensive and expensive. The project harnesses naturally-resilient Daphnia to remove these contaminants without chemical treatment or the use of energy, helping water companies to meet tightening regulations while reducing costs and environmental impact.

Enabling Digestate Valorisation by Removing Wastewater Challenges in Biocrude Production – led by Wastewater Fuels - £89,354

Developing a cleaner way to turn sewage digestate into low-carbon fuel. The process, called hydrothermal liquefaction, creates useful fuel and leaves behind polluted wastewater that is difficult and expensive to treat. The project uses natural bacteria to clean wastewater while also generating electricity – enabling lower costs and fewer emissions, and helping water companies gain more value from wastewater.

Entoremediation - Utilising Black Soldier Fly Larvae to Clean Sewage Sludge and Screenings – led by Entocycle Ltd - £100,000

Using larvae from the black soldier fly – known to have the ability to efficiently convert organic waste into nutrient-rich fertiliser – in order to clean sewage sludge and wastewater screenings before they are reused or disposed of. Sewage sludge can contain forever chemicals, microplastics, pathogens and heavy metals, creating risks for soils, rivers and wildlife. The project will test whether insect larvae can break down or remove contaminants more cheaply and effectively, helping water companies protect the environment as rules around sludge disposal become stricter.

FilaChar - Circular and Carbon-Negative Wastewater Treatment Enhancer – led by Carbogenics Ltd in partnership with Scottish Water, Swedish Exergy, University of Edinburgh, IBioIC, University of Stirling, University of Highlands and Islands, Scottish Enterprise, SEPA, Wetsus - £100,000

Producing a patent-pending carbon material called FilaChar that can improve wastewater treatment and protect rivers, while reducing costs and emissions. Produced from waste streams such as sewage sludge and screenings, it can be used as an additive or filtration material to enhance biological performance and pollutant removal.

From Fixed Assets to Adaptive Infrastructure: A Modular, Deployable Platform for Resilient and Innovation-Ready Water Systems – led by NUUV Ltd - £97,000

Developing a standard to support the deployment of plug-and-play equipment within the water sector – including disinfection technologies within treatment systems. The project is also trialling a subscription-based model that will enable water companies to rent equipment, to avoid the need for bespoke engineering; support efficient maintenance; and increase the speed at which incidents are resolved. The project’s ultimate goal is to deploy a UV LED system to support the eradication of Cryptosporidium – a parasite that can cause illness - from drinking water.

Lunasonic - Ultrasound for Catalyst-Free Destruction of Persistent Organic Pollutants – led by University of Glasgow - £100,000

Developing ultrasonic treatment technology to destroy organic pollutants in water rather than just capturing and moving the contaminants from one place to another. Using only sound as an input, Lunasonic creates microscopic bubbles that can break down forever chemicals and other stubborn contaminants into carbon dioxide and naturally-occurring mineral species. This approach offers a chemical and catalyst-free to treat emerging contaminants in water.

Metal Morph: Circular Coagulant Recovery for Water Utilities – led by Metal Morph Ltd - £100,000

Developing a process for water utilities to recover aluminium and iron-based coagulants from water and wastewater treatment residuals, which can then be recycled back into the same or adjacent processes. Bench-scale results show that the process can recover up to 90% of coagulants at 95% purity. It can also reduce the operational cost related to coagulants by 26%, reduce carbon emissions compared to virgin coagulants by 89%, and improve supply chain resilience. The project will build and test a prototype using different types of treatment residuals.

Multi-Gate PFAS Removal via Encapsulated Biologically Enhanced Powder Activated Carbon – led by Microvi UK Ltd - £100,000

Developing a new way to remove forever chemicals from drinking water by capturing and destroying them in one step. Many current treatments trap PFAS but leave behind contaminated waste that still needs to be dealt with. This project is using tiny polymer spheres that combine activated carbon - which captures the pollutant - with bacteria, that then break down PFAS. This could reduce waste, use less energy and chemicals, and fit into existing water treatment systems.

Open Hydro: Satellite-ML Predictive Flux Modelling for Early T&O Detection and Reservoir GHG Management – led by Open Hydro Ltd - £99,365

Using satellite data to spot early signs of algae problems in reservoirs before they can be seen from the ground. The system detects gases such as carbon dioxide and methane as they leave the water surface, helping water companies act up to two weeks earlier. This could reduce the need for costly treatment, protect the taste and smell of drinking water, and lower the carbon footprint of keeping supplies clean.

Project Aquantic: Applying Quantum Information and Computing to Water Networks – led by Quantum Base Alpha (QBA), in partnership with the University of Edinburgh - £99,950

Using quantum computing and machine learning to develop a more powerful way to predict leaks and manage water networks. By applying advanced algorithms to water company data, the project aims to spot patterns that conventional systems may miss. This could help water companies find leaks earlier, optimise water flow, and prepare for future use of quantum sensors across UK water networks.

PRVentor - Calmer Networks with a Longer Life and Reduced Leakage – led by Harvil Limited (Trading as PRVentor) - £100,000

Developing a smarter way to control water pressure in pipes, helping water networks to last longer, burst less often, and leak less frequently. The system automatically keeps water pressure stable, and adjusts it based on demand. It also prevents sudden spikes in pressure that can burst pipes or cause leaks, making the whole water network more reliable. Given that it can be fitted into existing valve equipment, it makes upgrades easier for water companies. This could waste less water, cut repair costs and disruption, and provide a more reliable supply for customers.

Purafloc: Patent-Pending Liquid Activated Carbon Blending for Targeted Sustainable PFAS Treatment – led by Purafloc Limited, in partnership with Biota Inc. - £100,000

Purafloc Limited will blend its Regulation-31 approved coconut and coal-based liquid activated carbon solutions to create a performance-led, sustainable new product range for targeted PFAS treatment within existing water infrastructure. Current treatment technologies can struggle to remove the full spectrum of PFAS, particularly smaller chain compounds. Purafloc’s solution offers added flexibility by blending its liquid carbon products at different ratios, allowing treatment to be tailored to site-specific water chemistry, infrastructure and PFAS profiles. As a liquid activated carbon product, it can be dosed directly into existing treatment processes, offering a practical, scalable and cost-effective route to improving water quality, supporting regulatory compliance and reducing the need for major capital investment.

Real-Time, Scalable Water Quality Monitoring for CSOs: CERES Autonomous Sensors – led by Mode Labs Ltd, in partnership with UK Centre for Ecology & Hydrology – £100,000

Developing water quality sensors that track harmful chemicals in rivers and sewer overflows in real time. Currently, monitoring is costly and unreliable. CERES sensors are low-cost, low maintenance, last up to six times longer than existing systems and can cut running costs by up to 70%. This project will trial CERES sensors in real-world conditions to prove performance, helping water companies detect pollution faster, better protect rivers and wildlife, and make smarter, data-driven decisions.

Resilient Energy Efficient Wastewater Treatment with Microbial Fuel Cells: ERES-WWTP – led by University of South Wales – £62,301

Creating a next‑generation wastewater treatment system that cleans sewage while turning the organic material within it into renewable electricity, by using the natural electrochemical processes of bacteria. By relying on microbial metabolism, the technology can operate reliably even when wastewater flows change or the power grid is unstable, and its biological activity can be monitored and controlled digitally without extra sensors - offering the water sector a resilient, efficient and sustainable way to manage wastewater.

Rheya Labs: Smart Batteries to Eliminate Sewage Pumping Station Spills – led by Rheya Labs Limited – £100,000

Developing intelligent battery systems for sewage pumping stations to prevent raw sewage from spilling into the environment during power failures. In the event of an outage, the battery instantly takes over to keep the pumps running and prevent pollution. Simultaneously, the system uses machine learning to analyse data from pumps and predict the wider root causes of spills before they happen. This provides early warnings and insights into the condition of assets. By eliminating sewage spills and preempting network failures, the project delivers cleaner rivers and a more resilient wastewater infrastructure.   

RiverSAGE: River Situational Awareness Guidance Engine – led by University of Sheffield, in partnership with Mounce HydroSmart Ltd – £99,652

Developing a smarter way to protect drinking water from Cryptosporidium, a parasite that can contaminate water sources. Building on tools first developed for Thames Water, the project will use new water sector data to predict where contamination may happen and identify where it is coming from. This could help water companies respond earlier, treat water more efficiently, and manage wider water quality risks as the climate changes.

Stabilising Sewage Digestate and Reducing Environmental Run‑Off with SIFER – led by University of South Wales in partnership with UK Centre for Ecology & Hydrology - £93,232

Developing a cleaner way to turn sewage sludge into a useful fertiliser. Sewage sludge can be hard to store, move and reuse, and nutrients can leak into the environment, polluting rivers and soils. The project will test whether SIFER, a treatment that stabilises digestate, can make wastewater digestate easier to handle, lock in valuable nutrients, and create a safer fertiliser for UK crops. It will also measure crop growth, greenhouse gas emissions and contaminants to understand the wider environmental benefits.

Under Pressure: Moving From Detection to Prediction and Intervention in Wastewater Networks – led by Catalytic AI – £100,000

Developing a smarter way for the water sector to interpret its growing volume of data so companies can anticipate and prevent pollution rather than simply observe and report it. Although huge amounts of new information is being collected, much of it goes unnoticed. The challenge therefore isn’t gathering data but making sense of it, and with more than 100,000 sewer‑level monitors expected across England by 2030, the need for meaningful, predictive analysis is urgent. This work aims to turn raw data into clear, actionable intelligence that helps water companies spot problems early and protect the environment more effectively.