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United Utilities is a double winner in Ofwat’s Water Breakthrough Challenge

19 May 2026
  • Two innovative bioresources projects aimed at generating hydrogen and graphene from wastewater biogas and advancing the treatment of sewage sludge will be delivered by United Utilities.
  • It is also a partner on nine other new projects nationally.
  • The sixth Water Breakthrough Challenge, funded by the Water Innovation Fund, has awarded £58 million to 19 projects tackling the water sector’s biggest challenges.

United Utilities has been awarded £9.5m funding to take the lead on delivering two innovative projects focused on using wastewater as a useful resource.

Of the 19 successful bids in Ofwat’s sixth Water Breakthrough Challenge, United Utilities is taking the lead on two and working as a partner on nine others.

Having already delivered a world first by using biogas as a sustainable feed source to produce clean hydrogen and graphene, United Utilities will once again join forces with tech firm Levidian to move the technology from a small-scale demonstration to full-scale installation.

The new larger version is expected to produce three times as much sustainable hydrogen and the advanced material graphene, as the earlier trial.

United Utilities will work with Severn Trent Water; Anglian Water Services; South West Water; Wessex Water; Yorkshire Water and Scottish Water to explore adoption across the water sector.

Manchester-based Concretene will provide a commercial output for the graphene produced through their admixture for lower-carbon concrete whilst Merseyside-based technology company ULEMco will assess potential transport uses for the hydrogen derived from LOOP, Carbon Ion Energy will test the graphene for use in the manufacture of their supercapacitors for improved energy storage and Tarmac will explore other uses.

United Utilities is partnering with US tech provider General Atomics on the ‘SCWO with the flow: Super Critical Water Oxidation (SCWO) for a cleaner future’ project. It will determine whether the technology is suitable for adoption in the UK as a method of reducing the volume of sludge produced as a biproduct of the wastewater treatment process.

 Cleanfields Technologies will provide support for trials taking place in the US while Queen’s University in Belfast will model the SWCO system for application for UK sludge. Yorkshire Water and Wessex Water are also partners.

 Tom Lissett, Bioresources and Green Energy Director at United Utilities said: “These exciting projects are focused on how we can create the most value from sludge processing and deliver the most efficient operations for our customers.

“We know that graphene can be produced from a sustainable biogas feedstock and has fantastic potential to be used to further reduce carbon within and beyond the water sector. Biogas generated from sewage waste could produce up to 75,000 tonnes of hydrogen a year – enough to fuel more than 40% of all UK bus and coach journeys. Our ambition is to see this transformative technology used more widely across the sector, playing a key role in the UK’s transition to net zero. 

“Through our ‘SCWO with the flow’ project we aim to take a technology proven in other sectors and assess the feasibility of using it at wastewater sludge production sites across the UK.”

Jo Jolly, Director, Innovation, Ofwat, said: “The water sector is going through its biggest transformation in 30 years. We have to make sure these changes drive far better outcomes for society and the environment. Multiple urgent challenges must be solved. And, importantly, our mindset must change. So that's our mission: bold, innovative solutions that take a long-term approach to the health of our vital water system and the impact of the water industry on environments and communities. This line-up of winners shows us just what can be achieved when we set our minds to it.”

The Water Breakthrough Challenge is delivered by innovation prize experts Challenge Works (part of Nesta), in partnership with Arup and Isle Utilities, and funded by Ofwat’s 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.