NRRI Now Winter 2006

Birch bark pellet plant moves NaturNorth forward
NRRI research is foundation for company growth

NaturNorth Technologies, a Minnesota company built on technologies developed at NRRI, is constructing the world's first birch bark pelletizing plant in Two Harbors. The birch bark pellets will be the first step in the production of valuable compounds used in a variety of industries.
The new facility is expected to start operating in early April 2006 and will initially employ five people. The patented technology will process the bark into pellets. From the pellets, commercial quantities of bioactive, non-toxic compounds such as betulin and betulinic acid can be made. The compounds have demonstrated effectiveness as antifungals, antibacterials and biocides (like pesticides) for use in pharmaceuticals, cosmetics, crop protection products and preservatives.
The Two Harbors bark processing facility represents an important step toward fulfilling NaturNorth's mission of converting birch bark into commercial quantities of valuable bioactive compounds, according to David Peterson, president and CEO of NaturNorth.
"The Two Harbors operation is an integral part of our overall strategy to construct a production facility and a demonstration site for our technology and lay the groundwork for further expansion as commercial opportunities develop," he said.
Birch bark is plentiful in Minnesota as a by-product of the forest products industry. Extracting valuable betulin and betulinic acids for industry represents exciting potential uses for this otherwise wasted resource. NRRI's Chemical Extractives laboratory has been the home of research and development of this process and continues in this role today.
In 1999, UMD joined into a partnership with Potlatch Corporation and Synertec (a subsidiary of ALLETE, Inc.) to form NaturNorth Technologies LLC. The company was housed at NRRI until it moved into its own facility in 2004.

EDA grants NRRI $1.25 million for taconite aggregate research

NRRI is poised to pave the way to safer highways. A grant of $1.25 million dollars from the U.S. Economic Development Administration was awarded to NRRI to research, test and demonstrate the use of Iron Range taconite tailings as aggregate for road construction and repair over the next three years.
Previous research performed at NRRI demonstrated how taconite mining byproducts, like coarse tailings, have enormous potential as a primary and/or supplemental source of aggregate for highways and other construction applications. Minnesota and other Great Lakes states face shortages of high quality aggregate for construction. Tapping into the billions of tons of taconite aggregate materials on Minnesota's Mesabi Range could provide a solution.
The project will be a collaborative effort between NRRI, UMD, the University of Minnesota, the Department of Transportation, as well as private and public sector organizations and individuals.
"We will also expand our ongoing investigations of value-added products and innovative technologies that are taconite aggregate-based," NRRI researcher Larry Zanko. "Some exciting examples are better-performing pothole patching compounds, and using microwave energy for deicing, pothole repair and pavement reheating."
Congressman Jim Oberstar applauds NRRI's innovative research that will result in higher quality asphalt, longer lasting highways and more jobs on the Iron Range to process the tailings for construction purposes. The transportation industry will also get a boost from the need to ship the tailings by rail, barge and truck.
"Enormous credit is due to NRRI's Director Mike Lalich and his superb technical staff who have developed the right formulation for the multi-faceted applications of taconite tailings to highway construction," said Oberstar.

Connecting nature in Duluth
GIS technology helps developers plan around valuable areas

Sometimes it takes a birds-eye view to see what's really happening on the ground. From a person's point-of-view, a new housing complex looks great amid a stand of white pines. From up above, however, we might see that it dissects the city's natural areas into unnaturally small pieces.
NRRI is using its "birds-eye" technologies, geographic information systems (GIS) and aerial photography, and the recently completed Duluth Natural Resource Inventory to help the city make wise choices about where future development should take place. The result will be a decision-making tool to develop a vision for Duluth's development over next 20 years.
The starting point for this project was already in place. Duluth's Natural Resource Inventory was completed by NRRI in 2000 to identify and categorize wetlands, forested areas, ball fields, golf courses and other undeveloped lands. This new layer of information is an analysis of those natural areas, ranking them according to their ecological significance to the area. For example, the Magney-Snively forest overlooking Gary-New Duluth has Duluth's largest stand of old growth, northern hardwood forest, which ranks high in significance when compared to tree stands that are smaller and younger.
NRRI scientists Tom Hollenhorst and Terry Brown presented the completed Natural Resource Assessment to a Citizen's Comprehensive Plan Committee in December.
"Sometimes it's hard for people to understand the cumulative effects of development," said Hollenhorst. "One small development may not seem significant, but it is if it interrupts a larger network connecting wildlife feeding areas with nesting areas, or disrupts Duluth's network of wetlands that help ensure water quality and reduce flooding."
Conversely, a large development may not have a large impact if it's properly located in an area outside the network of natural undeveloped areas. Careful planning should benefit both urban, human environments and our natural environments, Hollenhorst added.
"This is a good tool for developers because it gives them more certainty about what they can do, so they can plan future development," he explained.
Diane Desotelle, a consultant working with the city on the Comprehensive Plan, says NRRI's analysis of the area's natural resources is really the foundation for the whole planning process. The Plan will define a vision for Duluth over the next 20 years and set goals to help the city get there. She says that many communities often overlook this information or don't give it the attention it deserves.
"Duluth has this wonderful inventory of its natural resources," said Desotelle. "We know what's there, but now NRRI is providing a way for citizens to relate a vast amount of complex information in relation to its ecological significance to the natural community, not just to the human community."
The Natural Resource Assessment is being put to use immediately for the Comprehensive Plan to describe land use categories throughout the city. Desotelle also sees value for this project for future uses, like when the city's zoning ordinances or other land use-related ordinances are re-written. It will also be helpful for site level planning for new developments to best decide where to construct and where to preserve.
"It's hard to stand on a piece of land, look around and understand its true value beyond its human value," said Desotelle. "This assessment gives us solid, scientific facts that will help us all be more informed and make wiser decisions."
More information on Duluth's Natural Resources Assessment, visit www.duluthplan.com\DNRA.

All eyes on China
NRRI joins Governor Pawlenty's Trade Mission

Today, China is a carefully orchestrated, quickly developing, manufacturing society, and they're still emerging. By 2010, China will transition its focus to information technology and scientific development. Their astounding growth was witnessed first-hand by Minnesota Governor Tim Pawlenty in the fall of 2005, accompanied by delegations of industry and business leaders. NRRI Director Michael Lalich, Center Director Donald Fosnacht and Program Director Patrick Donahue went along to understand the challenges we face with China's economic force, as well as the opportunities for Minnesota to be a player on the same field. They share their thoughts below.

NRRI Now: Tell us about your specific delegations.
DONAHUE: I was in the general delegation that toured U.S. factories in China, no Chinese-owned factories. We wanted to get a better understanding of how U.S. companies do business there, what their experiences are, and their strategies for why they're there. It was very impressive. I thought it was really important to understand what kind of competitor we're facing and how they compete.

LALICH: I was with the environmental delegation. We're all in the same goldfish bowl from an environmental standpoint, so it was interesting to see where they are, and they have major environmental problems. Much of their water is heavily polluted and they're losing lots of land to desertification. They rely largely on coal-fired power plants for energy, and as part of their 11th Five Year Plan, they're just beginning to address desulfurization to minimize acid rain.
But the good news is, they're working with the U.S. EPA and are getting more serious about their environment. That's a benefit to our global "fishbowl" and there's potential for NRRI to lend research expertise. They were quite interested in what we consider state-of-the-art. For example, I saw a water treatment plant in Hong Kong that they had improved dramatically, but I don't believe it would be even close to U.S. standards.

FOSNACHT: The mining and steel delegation that I was part of wanted to gauge two things: the current state of the Chinese steel industry and where it is headed, and their willingness to buy resources from abroad. Basically, they believe they are about two-thirds of the way to their ultimate steel manufacturing size. Today they produce about 475 million metric tons per year, as much steel produced by the U.S., European Union, Japan and Russia combined. With that comes the need for more raw materials, whether it's coal, iron ore, limestone or energy.
China will continue to put pressure on world resources for a number of years, certainly coal resources. They are already importing dramatic amounts of coal from the U.S. For iron ore, there's some potential for expanding what we started on the Iron Range with Laiwu's (a Chinese corporation) part ownership in United Taconite. There are some unused portions of iron reserve on the Range right now that could potentially be marketed to foreign sales, depending on the logistics of shipping. China is definitely a viable market for our ore.

NRRI Now: So China is an opportunity and a threat at the same time?
DONAHUE: There is no question, in the forest products manufacturing and commodities industries China, is a huge threat. The furniture industry is a good example. With their low-cost labor and the efficient transportation model in place, I consider it a real threat. But we also identified opportunities for Minnesota to produce and sell luxury goods to China. There are a lot of wealthy people in China.

LALICH: If your business isn't into value-added products or doesn't have a particular niche or reason for being in Minnesota, it's going to be very difficult moving forward. Basic commodity products are going to be manufactured elsewhere. We can't compete with the cost structures overseas.

FOSNACHT: The U.S. is in a good position because we have our own coal and iron ore resources, as well as forest resources for wood products. Countries with their own raw materials base can almost completely negate the labor advantage that China has because they have to pay a high cost to acquire those raw materials.

LALICH: Of course, we have to guard against shipping out all of our resources. We have to add value here whenever we possibly can.

DONAHUE: We had two smaller manufacturers in our delegation, a second-tier supplier to the automotive industry. He was told that to remain a supplier, he'd have to put his factory within two miles of their new factory in China. But it was good business. I was impressed by how easy it was for small business owners to establish manufacturing facilities in China.

NRRI Now: So what were the impressions of Minnesota business people on the trip?
LALICH: They were thinking more and more about their specialty niches. Overall, I think they were very, very pleased. There were excellent match-making opportunities so they could interview with potential partners. Some got orders on the spot.

FOSNACHT: One member of our delegation received an order for $25 million worth of product. They were making good business deals.

LALICH: If you look at it, Chinese trade on a worldwide basis is in balance. Only the U.S. has a huge trade deficit with China, other countries have a trade surplus. They're not just shipping it all out. They're buying, too.

NRRI Now: What is NRRI's role in helping Minnesota adjust to the global economy?
LALICH: I know that China is planning to increase monitoring and research on the environment, so there may be opportunities for us to help with that. They really need help in managing their natural resources.

FOSNACHT: One goal on the iron/steel side is to help develop information about Minnesota's resources and capabilities, not only iron ore, but non-ferrous and other mineral opportunities.

DONAHUE: Realizing that luxury goods have quick potential in the Chinese market, I've broadcast that message to some of our wood products companies. Crystal Cabinets (Princeton, Minn.), for example, makes high-end cabinets. I've already worked with them on establishing a focused target for who to sell to and how to sell to them.

LALICH: We also developed valuable relationships with several members of the delegations. There are things they're doing that are synergistic with our program and they're quite interested in what we're doing.

It was both a fascinating and informative trip, there's no doubt.

NRRI wood experts lend a hand to New Orleans

Water-damaged homes left standing in the wake of Hurricane Katrina now face either demolition or restoration, but the decision isn't always a clear one. Wood rot can be hiding insidiously within wooden beams or frames.
The answer to the problem is technology. NRRI researchers and colleagues at the USDA Forest Products Lab have perfected techniques to detect hidden water damage using ultrasound tools. Unfortunately, there's no available housing in New Orleans that would allow the experts to teach their techniques those who really need it.
Once again, the answer is technology.
NRRI's Brian Brashaw and Bob Ross with the Forest Products lab in Madison were able to present an online, interactive presentation to New Orleans Director of Safety and Permits, Mike Centineo, and his staff in November. The presentation covered several techniques for detecting deteriorated wood using tools that don't require cutting into the structure. They also presented case studies relevant to the problems in the water-damaged city.
"We've been studying nondestructive wood evaluation technologies for years," said Brashaw. "We've taught these techniques to engineers and bridge inspectors, to historic home preservationists and to forest managers. The class for New Orleans was one of our most important."
Centineo, faced with unknown damage to historically valuable homes, knew he needed help and contacted Ross, who quickly pulled together some recommendations. Then Ross and Brashaw rounded up the technology they needed to give the short course online.
The Web seminar was based on a book written by Ross and Brashaw, along with Xiping Wang (NRRI), Robert White (Forest Products Lab) and Roy Pellerin (Washington State University), Wood and Timber Condition Assessment Manual. Among other things, the online course explained how to use special ultrasound or impact-induced stress wave tools that detect wood decay. NRRI was also able to donate one of the tools to Centineo and his staff.
"The online web seminar allowed us to take the participants to several locations on the Internet that contain reams of information for their reconstruction projects," Ross explained.

SIDEBAR:

The New Orleans online course was the first of a broader initiative to add a technological advantage to wood inspection techniques, especially for assessing the condition of historic wood structures. The expanded project received a grant from Northern Initiatives and the USDA Forest Service Wood Education and Resource Center to develop a "Community of Practice" on the Internet specifically for inspection of historic wood structures. This Web-based community is a gathering place for anyone seeking information on the topic.
"We are frequently called upon to answer technical questions by a wide variety of agencies and individuals about assessing wood conditions," said Brashaw. "It will be a great service to use Web-based information systems to share results from on-going research and knowledge gained from past inspections."

Speeding up science
Student thesis shows importance of regional data

Everything is slipping into the fast lane these days. Even the plodding and rigorous methods of science are being streamlined.
Anna Peterson, a graduate student working on her thesis in the Department of Biology and at NRRI, took on the task of asking, "Is this a good thing?" Specifically, she studied the Ohio Rapid Assessment Method for Wetlands, which is spreading across the country as a cost effective and time efficient way to assess wetland quality. Even more specifically, Peterson wanted to know if this assessment model would reflect the condition of wetland birds in the Western Great Lakes region.
"In this area, we've always used the Minnesota Routine Assessment Method," Peterson explained. "It's a more thorough, but more time consuming, method. If there's a better way to do this, it's worth checking out."
These methods are important because state and federal environmental laws require assessments of the function and quality of wetlands to determine whether they should be permitted for alteration or degradation, as well as the appropriate level of mitigation.
NRRI's extensive bird database made Peterson's research easier. She studied bird species that are either wetland dependent (like the Swamp Sparrow) or wetland associated (like the Red-winged Blackbird) because they are excellent indicators of the condition of the wetland ecosystem. Could the Rapid Assessment Method pick up on the trends of these and other wetland bird populations as well as a more thorough assessment method?
What she found was interesting and important, especially to NRRI's current Great Lakes Environmental Indicators project. The rapid method accurately reflected poor wetland conditions, for instance, large populations of Red-winged Blackbirds in stands of invasive cattails, but it was not consistent in assessing better wetland conditions.
"I don't think there's any getting away from rapid assessment methods," said Peterson. "You don't need a biologist to do them. They're quick and straight forward. But an agency using these methods needs to make regional adjustments."
Those adjustments, she explained, would better incorporate local human impacts to wetlands and account for the regional flora and fauna.
Peterson submitted her thesis to the University of Minnesota Duluth Biology Department in December, 2005 and graduated in January, 2006. She plans to continue focusing on bird conservation and pursue a Ph.D.

UP CLOSE:

Ohio Rapid Assessment Method for Wetlands
visually assesses quality of wetlands
asks standard questions on worksheet
applies a numeric rating
does not require trained wetland biologist
requires only one evaluator
incorporates physical characteristics to rate condition

Minnesota Routine Assessment Method for Wetlands
visually assesses quality of wetlands
asks standard questions on worksheet
applies a descriptive rating
requires experience and training in wetland science
recommends a diverse team of professionals
incorporates wetland functions and values to rate conditions

Finland and Minnesota share forestry knowledge
Ecologists work toward biodiversity on both sides of ocean

Northern Minnesota has deep cultural and ancestral roots to Finland. But there's more we share.
Our forests of pine, spruce, birch and aspen, and the logging trucks that regularly roll by, are familiar to both regions. Finland's economy, like Minnesota's, leans heavily on its forest-based industries. And their long history of intensive forest management holds valuable lessons.
NRRI's Gerald Niemi has been nurturing a relationship with Finnish ecologists over the past two decades so those lessons aren't lost. Maintaining sustainable forests and biodiversity well into the future is the goal on both sides of the ocean.
Conifers, scotch pine and spruce, are the trees of choice for Finnish industries, and they grow these species very successfully. Intensive forest management, along with improved genetics and weed control, has led to a dominance of coniferous species in Finland. Minnesota, on the other hand, has focused most of its recent attention on deciduous trees, primarily aspen.
"It's an interesting contrast," said Niemi. "The ecologists in Finland are concerned that there aren't enough deciduous trees because intensive forest management has removed many of the aspen and birch trees. Here in Minnesota, ecologists are concerned that there are not enough conifers."
Finland also has a history of managing their forests in a "clean" way by removing dead trees on the ground and leaving little debris after logging. This practice doesn't leave much woody debris for a variety of critters that need it for cover, food or nesting sites. Finland has a growing list of species that are of concern in its forests and modifications have, and are, being considered to reverse this trend. In addition, this "clean" forestry method doesn't allow for decomposition of plant matter that naturally regenerates soil nutrients.
"Finnish ecologists would like to incorporate more of what we could call 'messy' forestry, like we do here, into their management," Niemi said. "Coarse woody debris left after a logging operation is very important to many animal species, from small mammals, to birds, to amphibians. It's reasonable to remove some of the slash from a logging site, but the amount depends on the productivity of the site."
Over the past 20 years, Finland has made a concerted effort to change some of their forest management practices. They are more committed to preserving old-growth stands by reducing clear-cutting logging methods. They are also beginning to incorporate more "messy forestry" by increasing coarse woody debris and promoting more deciduous tree species, especially aspen.
Niemi respects Finland's focus on ecological issues and the many highly trained environmental scientists they have working to maintain their ecological standards. He studied in Finland under a Fulbright Scholarship in 1981 and has been sharing information on these issues ever since.
"We need to better integrate our information on economic and environmental indicators to make good management decisions on the use of our natural resources," said Niemi. "Currently, the linkage is lacking, but we are trying to improve the connections."
Recent "linkages" include two trips to Finland by Niemi in the past year to give presentations on natural resource sustainability and indicators of environmental change. He also sits on an advisory board to UPM Blandin Paper Mill, a global forest products company based in Helsinki, Finland. Jim Marshall, Blandin mill forest resources manager, says that Niemi brings essential expertise in forest birds and other ecological matters to the board.
"Gerald has seen first hand the company's forestry practices and environmental performance, and is able to observe and comment," said Marshall. "There is truly a huge opportunity to learn from each other, and we're doing that, in both the academic and business realms."
Further strengthening the relationship, Blandin foresters and forest ecologists have also traveled to Finland and hosted Finnish colleagues in Minnesota, discussing forestry practices and biodiversity issues.
"The forest industry is important to the economies of both northern Minnesota and Finland," said Neimi. "But we also want to maintain biodiversity for the health of the forest, to maintain clean water and because of the unique diversity of our plants and animals. The balance of those things, what you cut, where you cut, and what is left in the forest, is the crux of the matter. Finding that balance is exactly what we're doing at NRRI and what Finnish society is interested in, also."

Make it fast, make it beautiful
Northern Lights Technology Center wins first prize for finish

As we become more familiar with the possibilities of rapid prototyping, the "oooh" and "aaah" is fading. So now's the time for NRRI to take the technology to the next level, and they're winning awards for their efforts.
"More and more, companies want their prototype part for more than just to check the engineering, design and function," explained Steve Kossett, NRRI prototype engineer. "They want it to look, feel and even perform, like the finished part."
To prove that their Z-Corp 3-D printer could produce finished parts, NRRI engineers built a full-sized, shiny, two-toned wheel rim. It has the heft and dimensions of a rim ready to put on a car, but it's made out of plaster and epoxy resin. The wheel is so beautifully finished, it won first place in a parts contest judged by people who regularly use the Z-Corp 3-D printer.
"We wanted to be able to show that the Z-Corp can make large parts, the actual size that the finished product will be," said Kossett, "and that it can look like the finished product, too."
The Z-Corp is one of five rapid prototyping technologies available in the Center, and it has the largest format. To make the winning piece, required a little trial and error: then, layers of epoxy, a lot of sanding by technician Steve Johnson, followed by precision automotive painting by technician Mike Cable.
"The aesthetics are as important as engineering to the designer. A part can look very different on the computer screen than it does when it's built," Kossett said. "Prototyping is a bridge between the digital world and the actual world."
NRRI's Northern Lights Technology Center has five different rapid prototype machines that allow engineers to fit the technology to the product. To learn more, visit their web site at www.nrri.umn.edu/NLTC/.

The Natural Resources Research Institute was established by the Minnesota Legislature in 1983 to foster economic development of Minnesota's natural resources in an environmentally sound manner to promote private sector employment.
 
Michael Lalich, director
Center for Water and the Environment: Gerald Niemi, director
Center for Applied Research and Technology Development: Donald Fosnacht, director
Center for Economic Development: Elaine Hansen, director

NRRI Now
Nora Kubazewski, managing editor
June Kallestad, editor/writer
Trish Sodahl, layout

NRRI Now is published to provide information about our programs and projects.
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