Key takeaways
- Quantum computing poses an imminent threat to current encryption methods—especially in the energy sector, where long-lifecycle systems and sensitive operational data are at risk of “harvest now, decrypt later” attacks.
- Enterprise leaders must act now by aligning with NIST’s post-quantum cryptography standards, modernizing security architectures, and integrating quantum resilience into governance, risk management, and capital planning.
- Quantum resilience is more than cybersecurity. It’s a strategic differentiator that enables trust, compliance, and competitive advantage in a digitally converged, quantum-enabled future.
The energy industry is pressured by regulatory changes and a highly competitive business arena to decarbonize and digitize its systems. Forward-thinking energy leaders must prepare for a new class of cyber threats.
Although quantum technology is not adopted at scale, quantum-enabled computing and simulation are already endangering data security that must remain protected for decades. By using quantum computers, anyone who intercepts encrypted data today could potentially decrypt it in just a few years.
For companies in the energy industry, this means that conventional encryption will no longer sufficient. Those who fail to act now risk being caught off guard by future attacks—with potentially catastrophic consequences for supply security, operational stability, and public safety.
Why classic encryption won’t be enough
Energy companies undergoing business and digital transformation are highly vulnerable to quantum-enabled attacks due to their complex, multi-stakeholder ecosystems—ranging from legacy infrastructure operators to newly integrated digital platforms. These entities often exhibit uneven cybersecurity maturity across supply chains, partners, and IT-OT convergence layers.
As quantum computing threatens current encryption standards, the lack of unified, post-quantum readiness leaves critical systems—grid operations, billing, logistics, and data flows—exposed to future cryptographic breaches with potentially catastrophic operational and national security implications.1
Classical cryptographic methods such as RSA or ECC (Elliptic Curve Cryptography) are based on complex mathematical problems that today’s computers need to solve. Quantum computers, on the other hand, could accomplish these tasks in a fraction of the time—using quantum algorithms.2
Data intercepted and stored today can be subsequently decrypted once powerful quantum computers are available. This so-called “harvest now, decrypt later” approach underscores the urgency—especially in an industry where confidential operational data remains relevant long-term.
The quantum threat and NIST’s response
NIST has taken a leadership role in addressing quantum-era risks by publishing quantum-resistant cryptographic algorithms as part of its Post-Quantum Cryptography (PQC) standardization process.
In 2024, NIST finalized the first set of quantum-safe algorithms, including CRYSTALS-Kyber for general encryption and CRYSTALS-Dilithium for digital signatures. These standards offer robust protection against Shor’s algorithm, which could render traditional RSA and ECC-based cryptography obsolete.
Boards and C-suites must direct their organizations to begin migrating encryption and authentication systems toward these quantum-safe standards—ideally under enterprise-wide zero-trust architectures.
According to NIST’s March 2025 guidance and new recommended quantum-proof algorithms, the year 2025 is the right time to begin using PQC.
NIST has selected Hamming Quasi-Cyclic (HQC) as the fifth algorithm in its post‑quantum key encapsulation standards, announced on March 11, 2025. HQC serves as a backup to the primary ML‑KEM (formerly CRYSTALS‑Kyber), offering extra mathematical diversity—HQC is based on error-correcting codes, contrasting ML‑KEM’s lattice‑based design. This ensures resilience in case ML‑KEM is compromised.3
A draft HQC standard will be released in 2026, with final publication expected in 2027. NIST emphasizes that entities should continue migrating to ML‑KEM while preparing to integrate HQC as a contingency in their post‑quantum cryptographic infrastructure.
Adopting NIST-recommended encryption is a technical task and a fiduciary responsibility. Failure to act proactively could result in catastrophic breaches, legal exposure, and reputational damage. Therefore, integrating quantum readiness into enterprise risk management frameworks is imperative for compliance and strategic innovation.
Deep tech stack for quantum resilience
To quantum-proof operations, businesses must go beyond encryption and embrace a multilayered deep tech stack that reinforces data integrity, governance, and operational agility. This stack includes:
Permissioned Blockchain: A foundational layer for tamper-proof audit trails and secure multiparty transactions. Unlike public blockchains, permissioned blockchains such as Hyperledger Fabric or Corda offer role-based access control, scalability, and interoperability—making them ideal for regulated industries preparing for quantum-secure transaction systems.
Data Mesh and Data Fabric: These architectures democratize data access while maintaining strong governance controls. A data mesh promotes domain-driven data ownership and treats data as a product. In contrast, a data fabric ensures real-time data integration, metadata management, and semantic consistency across hybrid environments. In a quantum-aware digital enterprise, this duo enables agile, secure, and scalable data movement—critical for safeguarding sensitive information across business units.
Digital Twins: Digital twins of critical infrastructure, supply chains, and organizational processes enable simulation-based risk forecasting and cyber resilience testing. When embedded with quantum-resistant security models and cryptographically signed metadata, digital twins can be real-time operational integrity and system health validators.
Web3 and Decentralized Infrastructure: Web3 frameworks offer decentralized identity (DID) protocols, smart contracts, and token-based systems that reduce single points of failure. Combined with quantum-proof keys, this decentralized approach enhances privacy, autonomy, and transactional resilience in next-generation platforms.
Strategic leadership and governance responsibilities
Boards must establish a Quantum Readiness Committee or integrate quantum risk and quantum governance into existing digital oversight structures. This includes:
- Directing CIOs and CISOs to audit current cryptographic assets and map them to the latest NIST PQC migration plans.
- Ensuring CTOs and innovation officers embed quantum-resistant protocols in product development roadmaps.
- Mandating third-party risk assessments and quantum-readiness audits for all critical vendors, especially those managing proprietary or regulated data.
C-suite leaders, notably the CEO and CFO, must align quantum preparedness with strategic capital allocation. This includes budgeting for quantum training, cryptographic modernization, and deep tech R&D partnerships. They must also ensure investor communications reflect the enterprise’s proactive posture on emerging threats, reinforcing stakeholder trust.
“Quantum resilience is more than a technological upgrade—it is an ethical imperative. In an increasingly interconnected world, executive leaders must respond to threats and take proactive responsibility for safeguarding the long-term integrity of our critical infrastructure.”
Prof. Dr. Ingrid Vasiliu-Feltes
Strategic imperative for boards and C-suites
As quantum computing, sensing, and simulation advance from theoretical promise to applied reality, boards of directors and C-suite executives face a pivotal inflection point: revising enterprise digital strategies to ensure quantum resilience.
The urgency stems from anticipated quantum breakthroughs and the real possibility of “harvest now, decrypt later” threats, wherein encrypted enterprise data may be stored today and decrypted when quantum capabilities mature.
This new paradigm necessitates a forward-leaning governance posture—where cybersecurity, data architecture, and innovation strategies are realigned to thrive in a quantum-augmented future.
Quantum resilience as a strategic differentiator
Preparing for the quantum era is not just about neutralizing risk—it’s about capturing new opportunities. Organizations that implement NIST-approved quantum-safe encryption, operationalize blockchain-based trust models, and harness digital twins for real-time validation will be uniquely positioned to lead in the global Industrial Omniverse™ as defined by NVIDIA.
In this emergent ecosystem—where smart cities, autonomous supply chains, and AI-augmented services converge—quantum resilience will define digital trust, brand equity, and competitive advantage.
The message for boards and C-suites is clear: quantum-readiness is no longer optional but a strategic imperative.
From insights to action
To remain resilient in the long term, energy companies should take concrete measures today:
- Inventory of sensitive data and systems: Which data will still need to be protected in ten years? Where are vulnerable methods such as RSA currently used? An inventory forms the basis for all subsequent steps.
- Establish crypto agility: Systems must be designed to interchange cryptographic methods without a complete system overhaul. This so-called crypto agility is a key design factor of modern security architectures.
- Launch pilot projects with quantum-resistant algorithms: The post-quantum algorithms recommended by NIST, such as CRYSTALS-Kyber or Dilithium, should be evaluated in test environments, including in interaction with existing systems.
- Involve supply chains: Partners, suppliers, and service providers must join the effort. A resilient ecosystem requires a common security strategy throughout the value chain.
- Raise awareness at the board level: Quantum resilience is not an IT project but a strategic risk. Addressing it should be on the agenda of CEOs, COOs, and supervisory boards.
Outlook: A strategic opportunity
Although many companies in the energy sector still view quantum computing as a future capability, they should address the security risks today. Those who act early can minimize risks and secure competitive advantages through more robust systems, better compliance with regulatory requirements, and greater trust among customers and partners.
Quantum resilience is not a purely technical problem. It is a challenge for leaders. The time to react has come—the time to prepare is now.
What matters now
The question is no longer whether quantum computing will be a threat—but when. Companies that lay the foundations for it today will secure a technological advantage and gain the trust of customers, regulators, and investors.
The energy sector is considered the backbone of our society and must take on a leading role in the quantum-readiness transition.
Sources
- National Institute of Standards and Technology (NIST), “Post-Quantum Cryptography,” 2023
- NIST, 2022
- NIST, “NIST Selects HQC as Fifth Algorithm for Post-Quantum Encryption,” 2025
Cover image: stock.adobe.com
Disclaimer: The information provided in this article is solely the author’s opinion and not investment advice—it is provided for educational purposes only. By using this, you agree that the information does not constitute any investment or financial instructions. Do conduct your own research and reach out to financial advisors before making any investment decisions.
