An independent review is underway into “lessons learned” from the process enabling a $940 million deal for US firm PsiQuantum to attempt to build the world’s first utility-scale quantum computer in Brisbane, as well as how potential conflicts of interest were managed, newly tabled documents reveal.
The documents, released to the Senate late last year, also revealed the federal government considered pointing PsiQuantum to apply to its flagship manufacturing fund rather than investing directly in the company, but opted against this.
Advisory firm McGrathNicol has been contracted to undertake the review and will deliver its findings to the government by April 2025, according to the documents.
The federal government announced a $470 million investment, in partnership with the Queensland government, in PsiQuantum in early 2024.
The deal has faced controversy since, with concerns over a lack of transparency around the deal, the significant funding being provided to an overseas company rather than a local quantum firm, and whether the stated timeframe to complete the computer can be achieved.
Department warned delays ‘could curtail’ opportunity
The latest tranche of documents provided to the Senate on the PsiQuantum deal revealed the Department of Industry presented Industry Minister Ed Husic with the option of directing PsiQuantum to apply to the National Reconstruction Fund (NRF).
This was not the department’s preferred option, however, as at the time the NRF was not up and running and any delay could “lead to PsiQuantum building a quantum computer in another country”.
“We do not have sufficient information to determine that pausing this proposal without a potential path forward is the right decision at this point in time,” read a note to Husic from the department.
“This could curtail the potential opportunity to strengthen Australia’s quantum ecosystem, send a confusing message about the government’s commitment to the quantum industry and send a negative signal to the sector and other investors.”
This has since been jumped on by deputy Liberal leader Sussan Ley and the Coalition’s spokesperson for science, Paul Fletcher.
“Embarrassingly for Minister Husic, the documents… reveal his own department recommended against using his National Reconstruction Fund to fund PsiQuantum as it would have been too slow to invest, despite the fund having $1 billion allocated to its mandate for quantum technologies,” they said in a statement on Friday.
Earlier in its note, the Department of Industry said it was “satisfied that any potential perceived or actual conflict of interest with any individual who was involved in the project was appropriately managed with adequate controls in place”.
A 3D rendering of PsiQuantum’s planned quantum computing site adjacent to Brisbane Airport. Image: PsiQuantum / Supplied
Opposition targets PsiQuantum deal
Husic made a public interest immunity claim over some of the material in the documents, which has been redacted.
“Despite Industry Minister Ed Husic saying he ‘welcomes more scrutiny’ of the PsiQuantum decision, he continues to hide behind claims of public interest immunity to hide critical information about his decision making, again refusing to release PsiQuantum’s unsolicited proposal,” Ley and Fletcher said.
The Opposition has been pursuing the government over the PsiQuantum investment for several months.
It has pushed for a parliamentary inquiry into the deal and claimed PsiQuantum was given a “head start” over local companies.
The Department of Industry, Science and Resources did conduct an expression of interest process with the local quantum sector in 2023 to “explore the maturity of the market around quantum computing”, but it was already in discussions with PsiQuantum at the time.
More than $2.5 million will be spent per year to manage the PsiQuantum project, with $27.7 million allocated by the federal government to “manage and provide oversight of this investment” over 11 years.
The new Queensland state government is also currently reviewing its side of the investment.
- This story first appeared on Information Age. You can read the announced a $470 million investment.
