The Water Innovation Fund has awarded £100,000 seed grants to each of 20 projects selected for its second Water Discovery Challenge, a £7.5 million competition aimed at welcoming businesses that have not previously operated in the water sector.
The challenge is administered by an innovation prize organization in collaboration with engineering and utility partners. It deliberately targets innovators from academia, energy, agriculture, farming and environmental services, offering a rare entry point for smaller firms into a traditionally closed industry.
All finalists receive £100,000 in seed funding, seven months of mentorship, data and commercial development sessions, and expert guidance from water companies. In April 2027, up to ten of these teams may secure additional funding of up to £550,000 each, together with five more months of support to accelerate market launch.
The prize arrives as broader innovation financing shifts toward high‑growth climate‑tech firms, while accelerators multiply to meet growing demand for net‑zero solutions.
One awardee, Daphne Water Solutions, is deploying Daphnia—microscopic freshwater crustaceans—to filter forever chemicals, pharmaceuticals and microplastics from wastewater without chemicals or energy input. The bio‑filter approach integrates with existing treatment processes and aims to enable low‑carbon water reuse.
Rheya Labs is developing backup battery systems for sewage pumping stations, coupled with machine‑learning models that predict equipment failures before they occur. The technology seeks to prevent raw‑sewage spills during power outages, a persistent challenge that has recently drawn record regulatory fines.
The University of Glasgow’s Lunasonic project uses ultrasound‑generated microbubbles to break down persistent chemicals, a technique originally devised for purifying frozen water on a future lunar base. The adaptation promises a non‑chemical route to remove hard‑to‑treat contaminants.
Entocycle is testing whether black‑soldier‑fly larvae can cleanse sewage sludge of pollutants more cost‑effectively than existing methods, aligning with ongoing regulatory reviews of sludge management.
Industry regulators note that opening the sector to external innovators has introduced fresh perspectives on climate and biodiversity challenges. The diverse portfolio of finalist projects underscores the urgency of translating novel ideas into tangible impact.
The competition highlights a growing momentum toward interdisciplinary solutions that can reshape water treatment, reduce environmental harm, and support the transition to a sustainable, low‑carbon economy.
