Ofwat Launches £400 Million Fund to Drive Water Sector Transformation Over Next Five Years

Published on January 30, 2025

Ofwat, the economic regulator for England and Wales’ water sector, has announced a £400 million innovation fund to support transformative projects addressing critical challenges in the industry. The fund, which doubles the previous £200 million allocation, will run until 2030 and aims to scale innovative solutions to improve environmental impact, reduce leaks, cut greenhouse gas emissions, and enhance customer services.

Since its establishment in 2020, the Ofwat Innovation Fund has supported 93 projects involving over 240 partners, including water companies, universities, environmental charities, and local governments. Notable initiatives include robotic pipe inspection systems, seagrass restoration, and advanced sewage sludge processing.

The expanded fund will introduce annual Water Breakthrough Challenges, additional Water Discovery Challenges, and three new funding streams to support sector-wide collaboration and scaling of successful innovations. The initiative aligns with the UK government’s economic growth plan, with water sector investment set to quadruple over the next five years as part of a broader £104 billion strategy.

Delivered by Challenge Works, Arup, and Isle Utilities, the fund emphasizes collaboration to develop future-ready solutions. For more information, visit waterinnovation.challenges.org.

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