Minnesota State Wood Innova/on Team. May 30, 2017

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1 Minnesota State Wood Innova/on Team May 30, 2017

2 State Wood Innova/on Team Funded to May 2018 USDA Forest Service State and Private Forestry Wood Education Resource Center Connect forest resources and markets Enhance existing and emerging forest industry Reduce fire risk and improve forest health

3 Who? Minnesota state agencies Universities National Forests Private landowners Economic development organizations Private industry

4 Tasks 1. Monthly meeting / Web Site woodinnovation.umn.edu 2. Improve forest health/reduce fire risk 3. Quantify hazardous fuels and forest health improvement opportunities 4. Conduct forestry research to support the accelerated thinning of red pine 5. Develop and deliver short courses for architects, policymakers and industry 6. Explore markets for wood in Destination Medical Center (DMC)

5 Tasks 7. Identify processing & bioenergy tech to use hazardous fuels/ underused species 8. Assess contracting strategies to support fuels reduction and forest management 9. Build technical & leadership capacity for existing wood products manufacturers 10. Integrate and leverage with the Minnesota State Wood Energy Team 11. Develop an innovation product development research grant program

6 Task 1. Website woodinnova/on.umn.edu (Reichenbach) Pictures and captions for each of your projects: Something that highlights your accomplishments in Include Healthy forests, Fuel hazard, Harvest for forest health In woods drying CLT

7 Task 2. Improve forest health/ reduce fire risk Approval of change at USDA, now pending University Action Proposed Field Tour: USDA- Forest Service treatment sites Laurentian Master Woodland Owner Class planned Start date June 2017 On-line, and face to face format

8 Task 3. Quan/fy hazardous fuels on the Superior and Chippewa Na/onal Forest Ongoing conversations and discussions with NRRI, Minnesota DNR, and the Superior and Chippewa. New point person identified to lead, John Gephart NRRI. MN State Legislation Considerations ( BE IT ENACTED BY THE LEGISLATURE OF THE STATE OF MINNESOTA: Sec.on 1. Minnesota Statutes 2016, seccon 216B.2424, is amended by adding a subdivision to read: Subd. 9. Adjustment of biomass fuel requirement. (a) Notwithstanding any provision in this seccon, a public uclity that operates a nuclear-powered electric generacng plant may file a peccon with the commission for approval of a new or amended power purchase agreement, or, with the agreement of all parces, the early terminacon of a power purchase agreement, with a facility that was previously approved to sacsfy a porcon of the biomass mandate in this seccon.

9 Task 4. Conduct research to support the accelerated thinning of red pine Draft Document Consideration in the management of young red pine stands: Implications to yield and economics submitted to DNR Working to distill this down to a management guide to DNR. Had one meeting in late Nov, waiting for feedback on what they want in a management guide.

10 Task 5. Innova/on in Wood Design - Deliver 3 short courses for architects and industry Status Update: - Dovetail is working with Woodworks to plan the remaining two events in second quarter of 2017 (to best align with Woodworks' calendar of events). - Katie Fernholz at Dovetail is coordinating with Archie Landreman at Woodworks. The 2017 workshops are scheduled for: Tuesday, April 25 th in Duluth (hosted at NRRI) and Thursday, April 27 th in Rochester (UCR-Heintz Center, UMN Extension Regional Office )

11 Task 6. Des/na/on Medical Center Wood Innova/on Opportuni/es Include wood in building and expansion Rochester Energy Commission, DMC Economic Development Authority, Rochester, and Olmsted County Activities include Engaging local leaders to increase wood use Providing outreach to local wood producers/industries Creating local awareness of forest products SWIT team to make visit in February

12 Task 6. Updates Training Thursday, April 27 in Rochester Another great meeting with Kevin Bright, DMC Sustainability Coordinator, Scheduled for monthly meetings. Hoping to work on affordable, sustainable housing with wood (among other things).

13 Task 7. Iden/fy wood processing and bioenergy technology/equipment that support u/liza/on (Brashaw, Singsaas) Ongoing involvement and support for mid and tall-rise buildings from mass timber WI looking at a DNR Forestry Summit in fall Working closely with Angela Gupta, Katie Fernholz, Jacob Mans and others to identify potential Rochester champions for mass timber construction and design focus on creating market pull

14 Task 7: Iden/fy Wood processing and bioenergy technology & equipment Advanced Lignin Biocomposites LLC Licensing lignin plastic patents from UMN, ORNL, UW Met with OTC March 2 to discuss Liquid fuels include cellulosic ethanol and butanol Value-added product development with lignin bioplastics and composites Includes material from Verso Duluth mill DOE proposal due April 4 CAAFI State Initiative Met with company representatives Familiarity with Potlach site Need ~1000 dry tons/day plantation-grown biomass GEVO Needs low-cost biomass fuel for combined heat and power to achieve low carbon fuels certification. Discussed options for getting red pine thinnings from Bemidji to Luvurne

15 Task 8. Assess the poten/al of & develop contrac/ng opportuni/es, such as Stewardship contracts, to support fuels reduc/on and forest management (Don Peterson) Nothing new to report.

16 Task 9 New Use for Sawmill Residue and for Soawood Pulp Wood Bolts The NRRI organized a Minnesota visit by technology provider PolymerTrend LLC during the week of February 20 th. The company has developed composite panel board concept plants that can be scaled down to 60,000 cubic meters per year. In addition the company has an innovative log pretreatment method that may have the potential to help lower energy cost in pulp wood production. The NRRI and PolymerTrend will work to develop an agreement to further commercialize these and other associated process technologies. Following the creation of an agreement the NRRI will reconvene the consortium of regional composite boards users that meet in November to develop a focused initiative to build the business case for a new flexible compact board mill to be associated with the Potlatch Lumber Mill in Bemidji, MN.

17 Task 9 Building Leadership Capacity - Ligna The NRRI has proposed wood sector leadership training for Kristen Bergstrand (MN-DNR UM forester) and Tamara Lowney (Area Partnership for Economic Expansion (APEX)). The training will occur at Ligna with 1,500 exhibitors from 45 nations, it is the world s trade fair for forestry and forest products (May 22-26, 2017, Hanover, Germany), where companies from across the globe showcase their latest forest industry products, processes, and innovations The primary goal is to discover leading-edge wood products technology that can add value, not only to Minnesota pine pulpwood logs, but to all of Minnesota s forest resources. We have a developed a funding campaign to help augment the trip expenses.

18 Task 10. Communicate with the Minnesota State Wood Energy Team & the Wisconsin State Wood Ac/on Team MN SWET update MI SWET update HTM update

19 Task 11. Develop an innova/on product development research grant program for small businesses (E. Singsaas) ü Received an inquiry- Dec 20 th 2016 ü Assigned a PI to work with the applicant to write the proposal- End of Dec 2016 ü Proposal submitted- Feb 3 rd 2017 ü Review committee met and provided comments and questions- Feb 13 th 2017 ü Communicated the comments with the applicant, and they made the changes to the proposal- Feb 21 st ü Company presented their project to the review committee- Feb 24 th ü PI made minor budget alterations. ü Project is at SPA for final approval. Project Title: Wooden Nailed Cross Laminated Panels (NCLP) for industrial crane/equipment mats constructed from local, under-utilized low grade species Applicant: Savanna Pallets, Inc submitted by Aitkin County Project Amount: $30,000 ($15,000 from the grant, $3,000 cash match, $12,000 in-kind match) ** This amount is subject to change due to some budget changing by the PI Duration: 12 months (Apr Apr 2018) Received Second Inquiry from Lexington Door to develop new products from small pulpwood chips.