Water-cleaning insects, smart sewage pumping station batteries and ultrasound technology for breaking down persistent pollutants are among 20 finalists named in the second Water Discovery Challenge.
The challenge is part of the Water Innovation Fund and is designed to accelerate new ideas that could help the water sector respond to climate, pollution, resilience and environmental challenges.
Each finalist has received up to £100,000 in seed funding, alongside mentoring and sector support. Up to £7.5 million will be awarded through the challenge over 20 months.
Nature-based treatment, sewage spill prevention and pollutant destruction
The finalist projects include technologies from academia, agriculture, energy, environmental services and other sectors outside the traditional water industry.
One project, led by Daphne Water Solutions with ATG Group, will test a nature-based tertiary wastewater treatment system using Daphnia, tiny freshwater organisms sometimes known as water fleas.
The project aims to use Daphnia as biofilters to remove persistent pollutants, pharmaceuticals and microplastics from wastewater, potentially reducing the need for chemical treatment or additional energy input.
“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,” said Professor Luisa Orsini, Co-Founder and CEO of Daphne Water Solutions.
Rheya Labs has also been named as a finalist for a project developing smart back-up batteries for sewage pumping stations. The system is designed to keep pumps running during power failures and reduce the risk of raw sewage spilling into the environment.
The project also uses machine learning to analyse pump data and identify wider causes of spills before they happen.
“Sewage pollution is an ever-growing crisis across the UK, and power resilience at pumping stations is one of its major, yet hidden, causes,” said Ben Taylor, Co-Founder of Rheya Labs.
Another finalist, led by the University of Glasgow, is developing ultrasound technology to destroy persistent organic pollutants in water. The project, called Lunasonic, uses sound to create microscopic bubbles that can break down contaminants including PFAS into simpler by-products.
Sewage sludge, satellite monitoring and microbial fuel cells
The finalists also include Entoremediation, led by Entocycle, which will test whether black soldier fly larvae can help clean sewage sludge and screenings.
The project comes as Defra has consulted on reform of the regulatory framework for sludge applied to agriculture. Defra’s consultation noted that sludge regulations have not been substantially revised since 1989, despite improvements in understanding around sludge treatment and chemical complexity.
Open Hydro has been shortlisted for a satellite and machine learning project designed to detect early signs of algae problems in reservoirs. The system uses satellite data and gases leaving the water surface, including carbon dioxide and methane, to help water companies act earlier on taste and odour risks.
Quantum Base Alpha, working with the University of Edinburgh, is applying quantum information and computing to water networks, with the aim of improving leak prediction and network management.
The University of South Wales is developing microbial fuel cell technology that can clean wastewater while generating renewable electricity from organic material in sewage.
Finalists to receive mentoring and industry support
The 20 finalists will receive mentoring, data and commercial development support, and expert guidance from water companies. The aim is to help teams test feasibility and move promising ideas closer to adoption in real-world water sector settings.
In April 2027, up to 10 finalists are expected to receive up to £550,000 each to further develop and test their projects. They will also receive a further package of non-financial support and sector mentorship.
“In opening our doors to innovators outside the water sector, we have invited fresh perspectives to tackle head-on some of our greatest challenges,” said Jo Jolly, Director, Innovation at Ofwat.
Jolly said the range of new ideas demonstrated the importance of bringing wider expertise into the sector, but added that the challenge is getting innovations to deliver impact on the ground at pace.
The Water Discovery Challenge is run by Challenge Works, part of Nesta, in partnership with Arup and Isle Utilities. More information about the finalists is available from the Water Discovery Challenge.
FAQs
What is the Water Discovery Challenge?
The Water Discovery Challenge is a competition under the Water Innovation Fund that supports new ideas and technologies designed to help the water sector address major challenges.
How many finalists were selected?
Twenty projects were named finalists in the second Water Discovery Challenge.
How much funding has each finalist received?
Each finalist has received up to £100,000 in seed funding, alongside mentoring and sector support.
What types of projects were selected?
The finalists include projects using Daphnia to clean wastewater, smart batteries to prevent sewage spills, ultrasound to destroy pollutants, black soldier fly larvae to treat sludge, satellite monitoring for reservoirs and microbial fuel cells for wastewater treatment.
What happens next?
In April 2027, up to 10 finalists are expected to receive up to £550,000 each to further develop and test their innovations.
