Regional Quantum Initiative (RQI) in the Prairie Provinces

As part of the Government of Canada’s efforts to develop a National Quantum Strategy (NQS), Prairies Economic Development Canada (PrairiesCan) is delivering the Regional Quantum Initiative (RQI) in Alberta. This fund will help companies and not-for-profit organizations advance and commercialize quantum products and solutions for domestic and global markets.

The Regional Quantum Initiative advances PrairiesCan’s strategic priorities. As one of four regional hubs of Canadian expertise in the field of quantum technologies, Alberta is well-positioned to transform research into products and processes. The Alberta region has strengths in quantum computing, materials, sensors and communications technology.

Quantum science is the study, manipulation and control of systems at the atomic and subatomic level. It can lead to transformative technologies in fields such as computing, sensors, secure communications and advanced materials development.

Quantum technology is at the leading edge of science and innovation, with enormous potential for commercialization. In addition to helping transform the Canadian economy, quantum technologies have the potential to help advance a wide range of benefits for Canadians, including:

• the design and delivery of new medicines, vaccines and next-generation batteries;
• more efficient and secure supply chains and digital communication;
• new greener products and new approaches to model, track and forecast climate change.

Areas of focus for RQI include:

• quantum computing;
• quantum sensors;
• quantum communications technology;
• quantum materials.

How and when to apply

You can submit an Expression of Interest (EOI) by contacting PrairiesCan at one of our local offices in Alberta. EOIs will be accepted on a continuous intake basis until the funding is fully allocated.

RQI funding can be used for eligible initiatives until March 31, 2028.

Eligible applicants

This is a competitive program with priority given to eligible applicants in Alberta’s quantum hub that are:

Incorporated businesses, including start-ups/early revenue firms that are commercializing or adopting quantum technologies or quantum-based solutions.  Preference may be given to small and medium-sized enterprises (SMEs) with less than 500 full-time employees (FTEs).

Applicants must:

• be a for-profit company incorporated to conduct business in Canada;
• have staffed operating facilities in Alberta;
• have confirmed funding from all other sources, including government and non-government (non-government funds must represent at least 50% of the proposed project costs).

Not-for-profit organizations, including those that support quantum businesses, innovators and entrepreneurs for start-up, growth, productivity, technology commercialization, technology adoption, export and investment attraction, including:

• post-secondary educational institutions;
• business accelerators and incubators;
• angel networks;
• Indigenous (First Nations, Inuit, Métis) organizations, including Indigenous-led not-for profit organizations and Indigenous-owned businesses;
• groups of eligible recipients such as industry associations or consortiums.

All eligible applicants must be legal entities capable of entering into legally binding agreements.

Eligible activities could include

Productivity improvement, which includes:

• acquiring, adapting and adopting new technologies and processes;
• process re-engineering;
• improving manufacturing capacity.

Business scale-up, which includes:

• developing or expanding markets;
• adopting best management practices, processes and systems;
• developing business opportunities.

Technology commercialization, which includes:

• growing and diversifying markets through late stage product development;
• technology showcasing and demonstration (Technology Readiness Levels (TRL) 7-9 as defined by Innovation, Science and Economic Development Canada).

Ecosystem capacity building, which includes:

• developing strategic business alliances within a specific sector or cluster;
• identifying barriers to scale-up and productivity enhancement within the sector or cluster through research and analysis;
• developing a strategy to address these barriers.

Business acceleration and incubation, which includes:

• helping entrepreneurs create and grow their start-up companies by providing advice on how to:
  • create a business plan;
  • determine a marketing strategy;
  • hire employees, experts and/or mentors;
  • advance technology to TRL 7-9;
  • deploy specialized equipment.

Priority under RQI may be given to projects that contribute to one or more of the following:

• clean economic growth by transitioning to greening of products or operations or environmentally sustainable practices;
• diversity, equity and inclusion through an increase in participation of underrepresented groups.

Eligible project costs

Incremental costs essential to the project. Costs that may be eligible for reimbursement include:

• cost of labour (e.g. wages and benefits);
• capital costs (e.g. purchase of machinery or equipment);
• operating costs that are directly related to the project, such as management fees or working capital;
• consultancy fees (e.g. professional, advisory and technical services);
• costs related to intellectual property protection;
• preproduction (e.g. technological development and commercial demonstrations);
• subcontracting costs;
• production and distribution of promotional material and management tools;
• anticipated cost of maintaining the useful life of an asset for a reasonable period;
• costs related to specialized services, such as testing services, research and development services, technical or innovation services, sector development strategies in all markets and business networking.

Ineligible project costs

Costs deemed unreasonable, not incremental and/or not directly related to project activities will be ineligible for reimbursement. These include, but may not be limited to:

• basic and applied R&D (TRL 1-6);
• land acquisition and goodwill;
• salary bonuses and dividend payments;
• entertainment expenses;
• refinancing of existing debts;
• amortization or depreciation of assets;
• purchase of any assets for more than their fair market value;
• lobbying activities;
• donations, dues, and membership fees.

Available funding

• Businesses can receive interest-free repayable funding for up to 50% of eligible costs.
• Eligible not-for-profit organizations can receive non-repayable funding for up to 90% of eligible costs. Eligible not-for-profit organizations proposing to undertake commercial projects will normally receive repayable funding.
• Stacking of government funding (from all three levels of governments) is limited to up to 50% eligible capital costs and 75% of other eligible costs for businesses or commercial projects.

Application review

Applications will be evaluated on:

• their ability to achieve the RQI objectives;
• their relative strengths to help Canadian companies advance and commercialize quantum products and solutions for domestic and global markets.

The evaluation considers the following areas:

• market potential;
• management capability;
• financial capacity;
• economic impacts (e.g. jobs created, revenue growth, export sales growth, technologies brought to market);
• technology readiness (technology commercialization projects only);
• departmental and regional priorities.

Repayment terms (for repayable funding)

• After project completion, there is a 1 year grace period, followed by equal monthly repayments over 5 years.
• Interest-free.
• No security/collateral will be taken.
• There is no penalty for early repayment.

Not-for-profit organizations may receive non-repayable contributions for non-commercial projects.

Contact us

Contact one of our local offices in Alberta to learn if your organization could be eligible or for any other questions on this initiative.

The Regional Quantum Initiative (RQI) is part of the national Regional Economic Growth through Innovation program.