The Advanced Research Projects Agency – Energy (ARPA-E) under the U.S. Department of Energy has released the Quantum Computing for Computational Chemistry SBIR/STTR (QC3 SBIR/STTR) funding opportunity. This initiative seeks to advance computational chemistry and materials science through the development of quantum algorithms capable of addressing energy-related challenges. Despite significant advancements in classical computing, certain complex chemical and material problems remain unsolvable due to computational limitations. Quantum computers, with their unique capabilities, present an opportunity to overcome these barriers by achieving exponentially faster and more accurate solutions. The QC3 program specifically focuses on creating scalable, generalizable quantum computing algorithms validated on near-term quantum hardware, with a goal of achieving a 100-fold improvement in speed, accuracy, or problem size over classical methods. The expected outcomes aim to drive significant energy impact, including a cumulative reduction of approximately 1 gigaton of CO₂ emissions.

The program emphasizes the co-design of quantum algorithms, software, and hardware while requiring applicants to run their proposed solutions on real quantum hardware. Applicants are expected to identify energy-relevant problems and demonstrate the feasibility of quantum computing solutions across areas such as catalyst design, X-ray absorption spectroscopy (XAS) for materials diagnostics, superconductor optimization, and advanced battery chemistry. The overarching goal is to improve understanding of atomic and molecular systems, optimize reaction networks, and accelerate the discovery of next-generation materials and energy technologies.

ARPA-E plans to award approximately $30 million across this funding opportunity and a related solicitation, with an anticipated 5 to 10 awards. Individual awards may range between $306,872 and $4,398,504 depending on the project scope and proposed deliverables. Funding is structured to support Combined Phase I/II and Phase I/II/IIS awards, with Phase I focusing on proof-of-concept research and Phase II supporting technology development and validation. Phase IIS provides additional funding to continue the development of promising technologies. Applicants must demonstrate technical innovation, scalability, and a clear pathway toward commercialization and societal impact.

Eligible applicants include U.S.-based small business concerns (SBCs) that meet SBIR and STTR program eligibility criteria. STTR projects require a collaborative partnership between a small business and a research institution, with the small business serving as the lead applicant. All proposed work must primarily be performed in the United States, and projects involving foreign participants are subject to specific restrictions and approvals. Principal Investigators must be primarily employed by the applicant organization during the award period. Additionally, applicants must adhere to SBA benchmarks on commercialization progress if they have received prior SBIR or STTR awards.

Applications must follow a two-step submission process, beginning with a mandatory Concept Paper due by November 21, 2024. Following the review of Concept Papers, selected applicants will be invited to submit full applications by February 6, 2025. Required application components include a Technical Volume, SF-424 forms, Budget Justification Workbook, Business Assurance and Disclosure Forms, and proof of registration with SBIR.gov. All documents must be submitted via ARPA-E’s eXCHANGE platform. Applicants will also have an opportunity to respond to reviewer comments before final funding decisions are made.

The review process will evaluate proposals based on technical merit, alignment with ARPA-E’s mission, and potential for scalability and commercialization. Proposals must demonstrate a clear technical advantage over existing classical approaches, robust validation methodologies, and well-defined performance metrics. Selected projects are expected to align with ARPA-E's strategic goal of enabling transformational energy technologies that can have a meaningful impact on national energy security, efficiency, and environmental sustainability. Award notifications are anticipated in May 2025, with project start dates expected in August 2025 for an initial period of performance extending through August 2028.