The investment, awarded in Ofwat’s Water Breakthrough Challenge, will support two major schemes that focus on transforming wastewater into valuable resources, advancing environmental goals.
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 per cent 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.”
Funding comes from Ofwat’s Water Innovation Fund, which allocated a total of £58 million to 19 projects in its sixth Water Breakthrough Challenge.
Of the successful bids, United Utilities is leading two and collaborating on nine others.
Building on previous successes, the utility will again partner with tech company Levidian to scale up a world-first project that uses biogas to produce clean hydrogen and graphene.
The new, full-scale version will generate three times as much hydrogen and graphene as the original pilot, contributing more substantially to the UK’s decarbonisation efforts.
United Utilities will work alongside water companies, including Severn Trent, Anglian Water, South West Water, Wessex Water, Yorkshire Water and Scottish Water to explore sector-wide adoption of the technology.
Manchester-based company Concretene will use the graphene in its low-carbon concrete mix, while Merseyside’s ULEMCo will assess potential transport applications for the hydrogen produced.
Carbon Ion Energy will test the graphene for use in supercapacitors, and Tarmac will explore other industrial uses.
United Utilities is also partnering with US tech provider General Atomics on a project to test supercritical water oxidation (SCWO) for reducing sewage sludge volume.
Jo Jolly, innovation director at 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.
“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 Challenge Works (part of Nesta), in partnership with Arup and Isle Utilities, and funded by Ofwat’s Water Innovation Fund.