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Federal government slips $12.7 million to 8 quantum projects tackling energy, minerals and health

Solega Team by Solega Team
February 21, 2026
in Start Ups
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Federal government slips $12.7 million to 8 quantum projects tackling energy, minerals and health
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Eight projects, including a majority at Australian universities, will share in $12.7 million in funding from the federal government as part of stage two of its Critical Technologies Challenge Program (CTCP).

Stage two gives previous grant recipients additional funding, worth up to $5 million, to develop their stage one feasibility project to produce a prototype or demonstration product.

A team of AI and quantum researchers at La Trobe University and The University of Western Australia, working with NextDC, Fujitsu and AQ Intelligence, scored $1.1 million to develop technology that keep data centres cooler while reducing energy use and thus carbon emissions.

Quantum technologies are central to the projects with the funding delivered under $35.9 million commitment from 2023’s National Quantum Strategy.

Demonstrator projects that scored funding also include $1.5 million for the University of Sydney to develop its quantum-powered CT scanner, a portable device for rural health use to improve rates of cancer diagnosis and treatment; and $1.2 million South Australia’s Miniprobes to develop its quantum optical imaging for faster diabetes assessments .

Science, industry and innovation minister Tim Ayres said the program is designed driving innovation, investment and collaboration as part of the governments Future Made in Australia policy.

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“Quantum technologies have tremendous potential to boost local industries and lift productivity in Australia, for the benefit of all Australians,” he said.

“These eight CTCP projects highlight the importance of collaboration to solve some of Australia’s most pressing national challenges in energy, healthcare, and resources.”

Here’s who got the cash and what for.

Optimise the performance, sustainability, and security of energy networks

Applicant Project partners Project title Demonstrator funding
Flinders University Efficientsee Pty Ltd
Macquarie University
University of South Australia
Zeco Australian Energy Solutions Pty Ltd
A Quantum Computing-Based Demonstrator for Remote Community Energy System $1,157,530
La Trobe University AQ Intelligence Pty Ltd
Fujitsu Australia Ltd
NEXTDC Limited
University of Western Australia
Quantum Enhanced Optimisation for Energy Efficient Data Centres $1,110,213

Improve medical imaging and medical sensors to support diagnosis, treatment of disease and monitoring activities inside the human body

Applicant Project partners Project title Demonstrator funding
Miniprobes Pty Ltd Central Adelaide Local Health Network Incorporated
The University of Adelaide
Scaling Quantum Optical imaging for fast, efficient Assessment of Diabetes $1,200,000
The University of Sydney Micro-X Ltd
Royal Melbourne Institute of Technology
South Eastern Sydney Local Health District
The University of Wollongong
Quantum CT for Cancer Diagnosis in All Australian Clinics $1,492,000
The University of Wollongong Elekta Pty Limited
South Eastern Sydney Local Health District
The University of Sydney
A Quantum Photon Counting Linac for Advanced Image Guided Radiotherapy $1,000,000
University of Melbourne Axol Bioscience Ltd
Chromos Laboratories Pty. Ltd.
Quantum Diamond Foundry Pty Ltd
Tessara Therapeutics Pty Ltd
Quantum-enabled Platform for Neurological Drug Development $2,118,901

Optimise and reduce the impact of resource exploration, extraction, and mineral processing

Applicant Project partners Project title Demonstrator funding
Loughan Technology Group Pty Limited ABx Group Limited
Australian Rare Earths Limited
The University of Adelaide
Quantum Optical Sensing for Mine-site Detection of Rare-Earth Elements $2,372,820
Orica Australia Pty Ltd Department Of Defence
Syndetic Pty. Ltd.
The University of Queensland
Magnetic through-earth Communications for Mining $2,260,563



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