( CNN ) -- Microsoft co-founder Bill Gates thinks one of the answers to improving health is in the bathroom . A year ago , his foundation issued a challenge to universities to create a new toilet , launching a worldwide effort to improve sanitation . This week the Bill & Melinda Gates Foundation announced who won the challenge . California Institute of Technology was the big winner and was awarded $ 100,000 for its idea of a solar-powered toilet that generates hydrogen and electricity . The United Kingdom 's Loughborough University won second place and was awarded $ 60,000 for a toilet that produces biological charcoal , minerals , and clean water . The University of Toronto in Canada garnered third place and $ 40,000 for a toilet that sanitizes feces and urine and recovers resources and clean water . The new commodes are being showcased at a `` Reinvent the Toilet Fair '' Tuesday and Wednesday in Seattle . The foundation also announced a second round of grants totaling some $ 3.4 million to organizations that are working to innovative latrines . While many may not want to ponder creative ideas about human waste , the Bill & Melinda Gates Foundation says these creations are vitally important . About 2.5 billion people do n't have access to modern toilets , and this lack of access encourages the spread of diarrheal diseases , which are blamed for the deaths of 1.5 million children each year , according to the World Health Organization . `` Innovative solutions change people 's lives for the better , '' Bill Gates said . `` If we apply creative thinking to everyday challenges , such as dealing with human waste , we can fix some of the world 's toughest problems . '' The fair in Seattle will also bring together researchers , designers and investors from 29 countries , the Gates foundation says . `` Imagine what 's possible if we continue to collaborate , stimulate new investment in this sector , and apply our ingenuity in the years ahead , '' said Gates . `` Many of these innovations will not only revolutionize sanitation in the developing world , but also help transform our dependence on traditional flush toilets in wealthy nations . ''
Bill Gates announces winner of tiolet challenge . The new toilets will be showcased at a fair this week . The challenge is part of an effort to improve worldwide sanitation . Lack of toilet access is blamed for the deaths of 1.5 million children each year , experts say .