Ofwat seeks net zero innovations

Another £40 million is up for grabs for collaborative ideas that could solve some of the common problems that the water sector is facing.

Ofwat highlighted the net zero transition as an area that could benefit from the latest round of innovation funding. It called for “even bolder initiatives” as the sector stares down problems of net zero, pollution leakage and climate change.

In particular the regulator said it was seeking solutions to remove greenhouse gases from water company operations.

A total fund of £40 million will be available to entries with prospective bidders able to apply for grants between £150,000 and £2 million for smaller projects and up to £10 million for larger schemes.

“There are many challenges that the water sector needs to overcome in the next decade. They include the widely reported issues like leakage rates and sewage discharge into rivers,” said Ofwat innovation fund manager Marc Hannis.

“They also include less well-known challenges, like transitioning an industry that uses 3% of the country’s electricity to net zero while contending with the impacts of climate change and ensuring better quality services for customers.”

He added: “While it is our job as a regulator to hold water companies to account when they do not meet their obligations, we also want to incentivise water companies to accelerate innovative ideas that drive positive changes for the environment and consumers.”

The innovation fund, which launched in 2020 as part of PR19, was designed to provide money and opportunity to develop ideas that may solve common industry problems.

To date, £105 million has been awarded to projects ranging from pipe repairs using robotics; carbon capture technologies; seagrass restoration around the coast; and using biogases form wastewater treatment as a transport fuel.

The fund has been praised for enabling collaboration across the industry and with other sectors to apply successes to the water system. This year, Ofwat said the innovation fund would reward collaborations that generate and share knowledge and rollout successful innovations and was looking for “even bolder initiatives”.

Projects seeking up to £2 million have until 3 January to submit a bid, while the closing date for applications for larger projects up to £10 million should apply to the first stage by 19 October. Water companies partnering on bids should contribute an extra 10% of the project value submitted in the bid.