Silicon Quantum Computing (SQC) has secured A$3.6 million (US$2.5m) in funding to expand its collaboration with energy technology leader Schneider Electric, demonstrating a move toward practical application of quantum technology, the company says. The investment, announced by Minister Tim Ayres, will scale SQC’s quantum-enhanced AI chip, Watermelon, to production-scale energy grid datasets.

Stage 1 trials showed the hybrid quantum-classical model achieved up to 41% improvement in forecasting accuracy, a result Minister Ayres believes will “deliver a more efficient electricity system.” “Quantum computing is a bit like a unicorn,” said the Hon Matt Thistlewaite MP, “It’s often spoken of, but rarely ever seen in practice.”

Watermelon Chip Achieves 20% Forecast Accuracy Gains for Energy Grids

The Watermelon chip demonstrated an average 20% improvement in energy forecasting accuracy when tested against classical models, a result that positions the technology for broader deployment within Schneider Electric’s systems. This performance gain stems from a hybrid quantum-classical approach, using the chip’s ability to generate quantum features that enrich predictive models, ultimately improving their ability to anticipate energy demand. Gains reached as high as 41% in specific tests during Stage 1 of the Critical Technologies Challenge Program (CTCP), indicating the potential for significant optimization of energy grid management.

The expanded Stage 2 funding of A$3.6 million (US$2.5m) will focus on scaling Watermelon’s application to production-scale datasets, encompassing data from hundreds of additional homes, and integrating the chip directly into Schneider Electric’s existing AI workflows. This move signifies a transition from isolated testing to real-world implementation, an important step for any emerging quantum technology.

Minister Tim Ayres described the CTCP program as a test of whether the technology can solve practical national problems: “Not just quantum, but quantum being applied in practical applications that are making a big difference for Australia,” he said. The project addresses a growing challenge for energy grids, which are facing increased pressure from AI datacenters and the integration of dynamic renewable energy sources.

This achievement builds on a prior commercial demonstration of Watermelon with Telstra, where the chip accelerated the training of predictive network models, achieving comparable accuracy in days rather than weeks. The versatility of the chip, performing effectively across both telecommunications and energy sectors, highlights a rare pathway for current quantum processors to deliver tangible performance gains and cost reductions in production environments.

The ability to function alongside existing CPU and GPU infrastructure is a key differentiator, lowering the barrier to adoption for companies hesitant to overhaul existing systems. “The team here at Silicon Quantum Computing … are breathing life into the unicorn, making it a reality and delivering better outcomes for Australians,” said the Hon Matt Thistlewaite MP, referencing the often-elusive promise of practical quantum computing.

Minister Ayres highlighted the broader implications of improved forecasting accuracy, noting its potential to “deliver a more efficient electricity system, meaning that we’re able to switch faster between different sources of electricity generation” to “drive down electricity costs.” This capability is particularly important as grids increasingly rely on intermittent renewable sources, requiring rapid adjustments to maintain stability and meet fluctuating demand. The success of the Watermelon chip in this application demonstrates a move beyond theoretical potential, offering a concrete example of how quantum computing can contribute to a more sustainable and cost-effective energy future.