VTT Impulse 2/2013

2/2013

MCI

VTT

ICE AND

COLD

CLIMATES

A CHALLENGE TO TECHNOLOGY

SCIENCE Synthetic biology on the verge of a breakthrough

TECHNOLOGY Mining industry prepares for a new boom

BUSINESS UPM makes new materials from wood

VTT

2/2013 40 The challenges associated with Arctic conditions have long been studied, yet some issues remain scientifically unresolved.

Photo: Sandvik Mining

20

Photo: Tapio Nyman

Cyber security stems from comprehensive preparedness at all levels of society.

56

46

Digitalisation is the future, but we also need to retain the attraction of the printed magazine.

Limited resources should be focused on things that will genuinely boost Finland’s competitiveness.

MARJA MATINMIKKO

Contents 2/2013 VTT IMPULSE NOW Foresight.................................................... 2 Meet and greet.......................................... 4 Jussi Järventaus Renewable energy is tomorrow’s reality.... 8 Column..................................................... 15 Olli Ernvall

Photo: Jan Ahlstedt

VTT’s impact............................................ 16

Kohtaamisia henkilö

4

54

8

”Someday we may be able to charge our phones using intelligent clothing.”

PETRA LUNDSTRÖM, FORTUM

SCIENCE Science news...........................................................18 Arctic and cold climate solutions...........................20 Jaakko Heinonen, Principal Scientist, VTT Environmental measurements without borders.....26 Tuomas Häme, Research Professor, VTT Synthetic biology creates new industrial activities....34 Merja Penttilä, Research Professor, VTT

Photo: Sandvik Mining

Photo: ESA

56 Technological development is evident in every aspect of mining.

TECHNOLOGY

Technology news..............................................................38 Cyber security calls for teamwork...................................40 Cyber Security Strategy focuses on cooperation.

More than a magazine......................................................46 The magazine business in transition.

Young Researcher of the Year 2013: Marja Matinmikko...50 Marja Matinmikko has her sights set on spectrum sharing.

Smart technology from space.........................................54 Not just any kind of technology can be sent into space.

Mining industry prepares for a new boom .....................56 The promise of an upturn in the mining industry.

60

Diamonds for the markets...............................................60 Lessons learned in America.

BUSINESS Business news.................................................................62 New materials grow on trees..........................................64 UPM makes new materials from wood.

Turning research into business.......................................70 VTT and Tekes designing new starting blocks for spin-offs.

Turning green to gold in Australia...................................74 The South Australian forest industry seeks new paths.

The first commercial passive building in the Nordic countries....................................................80 The Kodin1 department store in Raisio employs new solutions to save energy.

80

The future trend is towards zero energy building.

EDITORIAL

Petri Kalliokoski Executive Vice President, Strategy and Business Development

“The Finnish Funding system for research institutes will be modified significantly.”

Finland and VTT in transition

G

lobal economic uncertainty is affecting both Finland’s business life and VTT’s clientele and business environment. Research and technology development enables innovations in business life, products and services, and enhances our competitiveness. Although Finnish companies are strong in many industry segments, we need new business and new enterprises, and we need them fast.

Fortunately, the bioeconomy, extensive use of ICT, clean and renewable energy, intelligent infrastructures and efficient production provide Finland with fresh opportunities for creating new products and services.

Finland boasts strong competence in several technologies and we are good at pooling these competences. When combined with a better understanding of customer needs and efficient utilisation of global value networks, this becomes a potent asset in global competition.

The changes in business environments and in the markets are a challenge and a driver of change for us at VTT. Our operations are increasingly focused on areas where our competence can renew business and industry and provide added competitive strength. In our experience, new business often emerges from business convergence and from combinations of multiple technologies. As a part of our revised strategy, we plan to discontinue some of our competence areas.

In the meantime, we will further strengthen our strategic cooperation with universities and research institutes, and assume an active role in international R&D projects.

Our strong involvement in the EU research sector can help Finnish businesses and research entities gain access to the EU framework programmes.

OUR ORGANISATION will be renewed at the turn of the year.

The change is designed to improve the effectiveness, flexibility and competitiveness of our operations. VTT’s technologies and competences will be organised into three business segments: Knowledge-intensive products and services, Smart industry and energy systems, and Solutions for biomass and environment. This new segmentation is perfectly aligned with the priorities identi-

fied for Finland’s business life reform. Strategic technology foresight activities and cooperation with universities will strengthen. No structural changes will be made to the VTT Group companies.

The Government has made a policy decision regarding the structures and financing of state research institutes. VTT and the Centre for Metrology and Accreditation Mikes will be merged accordingly at the beginning of 2015. The administrative model will also be revised, making VTT a state-owned limited liability company with special duties. VTT will continue to receive state funding for its strategic research, and remains a non-profit organisation. While the role and key activities of VTT continue unchanged, the organisational renewal seeks to strengthen VTT’s role as an innovator and add flexibility to financing.

THE FINNISH FUNDING SYSTEM for research institutes will be

modified significantly. A funding instrument for strategic­ research will be set up at the start of 2015 under the ­auspices of the Academy of Finland, with the objective of resolving challenges of major importance to society as a whole. As a consequence of this new funding instrument, direct government appropriation to VTT will decrease considerably over the next few years. At the same time, the funding instrument will provide VTT with new opportunities.

Economic uncertainty is expected to continue and eventually affect R&D activities. We hope the extensive structural and financial reforms will serve to boost trade and industry innovation, social renewal and new business development, as these are needed now more than ever. Experience tells us that long-term investment in research and development will bolster business renewal and growth in times of hardship.

VTT’S STRONGER ROLE as an innovator and new business

developer is a key element for better future competitiveness. Actions taken now build a strong foundation for future changes.

We are ready to do our bit in boosting smart and sustainable economic growth! n

FORESIGHT THE REVOLUTIONISING IOT The powerful growth of the Internet of Things (IoT) has already translated into consumer applications such as remote meter reading. VTT believes this next ICT revolution will change technologies and business life dramatically, and have a major impact on the economy and our everyday lives. Research will continue to be a strong field. One of the biggest challenges holding back widespread adoption of IoT is wireless energy transfer, although some sectors such as the automotive industry are already implementing several pilot projects.

20 billion A WIRELESS FUTURE The Internet of Things will make a growing number of everyday devices wireless.

These devices will either feature wireless charging or wireless power supply. This means future television sets will no longer need power or cable cords, and lamps can be installed anywhere.

The global wireless sensor markets are booming, with the markets expected to reach USD 20 billion by 2020.

HEALTH CARE MADE SIMPLE In 2020, the Internet of Things, together with a number of health-related applications, will enable cost-efficient and patient-focused health care services. With wireless sensors, health care providers can keep track of patients’ weight management, sleep, nutrition, medication and blood pressure, and provide patients with information and advice if required.

2  VTT Impulse

SMART LIGHTING SOLUTIONS With the emergence of smart lighting solutions, light will be provided on demand where needed, not in empty rooms or quiet streets. Future lighting solutions feature wireless control, with the light fixtures, switches and sensors all communicating wirelessly. Eventually, lighting will be part of the Internet of Things (IoT) infrastructure, enabling response to different user needs, such as adjusting the light for reading.

11billion The markets for smart lighting solutions are expected to grow from USD 0.5 billion to USD 11 billion by 2020.

SENSORS DELIVER REAL-TIME INFORMATION In the future, wireless sensors will measure and observe various aspects of our daily lives, and deliver most of this information openly and free of charge.

The information provided by sensors is not used by humans exclusively; devices share information, enabling innovative new services and better efficiency through process optimisation.

Experiments are being conducted on a number of wireless technologies such as ZibBee, Z-Wave, Bluetooth, NFC and WiFi low power. For more widespread use, consensus needs to be reached on the effectiveness of the different technologies. Other critical issues to be addressed include cost reduction and data security.

There are an almost unlimited number of potential applications: waste bins could notify waste management companies when they are nearly full, or car parks could notify cars of empty parking spaces.

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According to Järventaus, tax deductions should be removed and the taxation system simplified to encourage SMEs to pursue R&D and innovations.

JUSSI JÄRVENTAUS • Managing Director, Federation of Finnish Enterprises • Licentiate of Laws, Master of Laws with court training • Minister of Justice 1998–1999, Prime Minister Lipponen’s 1st government • Managing Director of the Federation of Finnish Enterprises since 1996

4 VTT Impulse

MEET AND GREET

JUSSI JÄRVENTAUS:

Let’s make Finland

more business friendly F

Text Paula Bergqvist Photo Jan Ahlstedt

The economic health of a country and job availability depend on the competitiveness of the entrepreneur sector, claims Jussi Järventaus.

inland’s business life, and specifically the labour market, is undergoing a structural change. Industrial sectors are in the midst of an upheaval that affects their employment potential, which is why private entrepreneurs, and the SME sector in particular, are assuming greater responsibility for employment.

“Jobs create well-being, and to create jobs we need sound enterprises. Entrepreneurship is the key to Finland’s success. We’ve done pretty well, but we need to keep working to stay where we are,” says Jussi Järventaus, Managing Director of the Federation of Finnish Enterprises.

He points out that nearly all new jobs in the past 10 years were created by the enterprise sector, with small companies of less than 10 people accounting for most.

“This change indicates that big companies are increasingly responsible for the organisational side of things, while entrepreneur-owned SMEs account for actual production. The big players decide where production takes place.”

Our investments are small compared to rival countries.

“Our total production still hasn’t reached the 2006 level, and it will take a while before we get there. One of the reasons for our waning competitiveness is the high cost level, particularly rising salary trends.”

By way of comparison, Järventaus notes that salaries in 2000–2011 rose by 13 per cent in Germany, compared to 42 per cent in Finland.

“In Germany, the salaries paid are more attuned to the companies’ ability to pay them. A similar change in

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Finland would require more extensive local bargaining for collective employer agreements.”

The Federation of Finnish Enterprises has repeatedly stated Finland’s need for a new pay negotiations procedure.

According to Järventaus, there are signs of the Government taking steps in the right direction.

“Competition with low-cost labour is no solution. Our objective is to enhance competitiveness using our own skills and competence, including technology excellence, while keeping costs at a competitive level.”

Public sector as market driver “The size of the public sector in proportion to total production has grown rapidly. The public sector accounted for 56 per cent of total production in 2012, even though an estimate prepared by the Ministry of Finance a few years ago predicted this wouldn’t happen until 2030.”

Contributing factors, Järventaus says, include a decline in total production, but also growth in the public sector.

“It would be extremely important to find a balance between public and private sector services to eliminate the sustainability gap.

Although our tax euros are used to provide important services, we should give some serious thought as to which services should be acquired by individuals themselves, and which should be provided by society.”

Järventaus proposes a cut of one billion euros in municipal tasks and investment of another billion in productivity improvements.

“Neither will happen unless we take steps

to improve the flexibility of the system and to make better use of the private sector to produce public sector services.”

Promotion of market activity should also be a target when developing public social and health care services, according to Järventaus.

“Use of private sector services has, in some instances, become too reliant on a few service providers. Outsourcing entire health care centres, for instance, can build an unhealthy dependency on one provider.”

Promoting market activity and competitiveness will be an important objective in the next few years, Järventaus believes.

“I’m in favour of setting procurement obligations for the public sector to make sure services are available in the future,” he says.

Europe shoots itself in the foot Financial markets, especially growth financing, are a major concern for the SME sector.

“I think Europe is shooting itself in the foot in terms of growth efforts. The recommendation of the Basel Committee on Banking Supervision to impose stricter capital adequacy and liquidity requirements on banks will complicate borrowing and shorten loan periods. This means regulatory measures are affecting sectors of business life that are not to blame for the financial crisis.

Admittedly, the regulatory framework for capital requirements is a necessity, but needs further development.”

The Federation of Finnish Enterprises proposes that when banks make their capital adequacy calculations, they should reduce the

Changes in the number of employees in different-sized enterprises in 2001–2011 56 000

50 397

Total increase: 119, 566 • Large enterprises 9, 484 • SMEs 110, 082 • Enterprises employing less than 20 people 71, 414

46 000 36 000 26 000

21 017

20 053

16 000

10 856

7 759

9 514

6 000 –835 - 4 000

1–9 h

10–19 h

20–49 h

50–99 h 100–249 h 250–499 h 500–999 h >1 000 h

Source: Statistics Finland. Number of people equivalent to full-time jobs, excl. forestry and agriculture.

6 VTT Impulse

805

risk weighting of business loans. This would decrease the amount of assets required to cover the risks.

“Steps were taken in this direction in the spring, but work on a global level is also required. The financial instruments planned at EU level to replace bank financing are a welcome alternative, but don’t meet the needs of the masses.”

Järventaus finds it regrettable that Finnish business owners often sell their business to a foreign investor or company just as it reaches its best growth stage.

“One of the reasons is that our taxation system continues to favour business divestment, rather than creating a situation that allows an entrepreneur growing a business to gain the reward that would match the risk invested.”

Järventaus claims that politicians consider dividend taxation from the perspective of income distribution rather than growth.

“Our decision-makers haven’t fully understood how dividend taxation affects entrepreneurs, their willingness to sell their business or to invest in growth.”

The model proposed by the Federation of Finnish Enterprises would cut taxation on any profit generated by the company. Alternative systems are also used in countries such as Estonia, where companies do not pay income tax.

“The company’s profit would then accumulate on its balance sheet and accelerate its ability to invest using its own assets. Taxes on the company’s income and on dividend should be lower than the general capital tax.”

This is the way to encourage entrepreneurship.

“Removing tax deductions and simplifying taxation would also encourage our SME owners to pursue the R&D and innovations necessary if we want to stay competitive. And there would be less need for external financing.”

Competitiveness slipping away?

The development projects of major corporations in Finland are generally a positive thing, but there is a danger of competence created in Finland slipping away closer to these companies’ key markets. Järventaus thinks it vital that ideas born in Finland are fostered in domestic research institutes, such as VTT, to generate innovations and growth.

“A frequent comment from our members is that too much of the R&D financing is given to the big companies. The statistics don’t entirely support this claim, though, showing that the SME sector has been given its share. Support to big companies has positive repercussions affect-

“IT’S AMAZING HOW WELL THE PRIVATE ENTERPRISE SECTOR HAS BEEN ABLE TO SECURE JOBS IN SPITE OF THE ECONOMIC GLOOM.” ing the whole of society. But it’s true that good opportunities may be missed because entrepreneurs are unable to secure financing for their ventures. Entrepreneurs and VTT should be offered more opportunities for cooperation to enable efficient use of VTT’s resources.”

The ability to exploit technology competence fully is one of the challenges SMEs need to address alongside internationalisation, sales and marketing. Järventaus would like to see the public sector support easy access to different types of expertise.

Positive signals According to a recent business barometer, the SME sector plans to hire more employees.

Investment level, however, remains below zero.

“It’s amazing how well the private enterprise sector has been able to secure jobs in spite of the economic gloom. And even with growing unemployment, domestic demand has remained moderate. This is a good indication of the entrepreneurs’ ability to adapt. When times are tough, entrepreneurs cut their own salary first.”

According to Järventaus, entrepreneurs are very confident about the future.

“Conditions for entrepreneurship have improved and appreciation of entrepreneurs is growing, as evidenced by our current educational policy.” n

FEDERATION OF FINNISH ENTERPRISES THE FEDERATION OF FINNISH ENTERPRISES is the largest

business federation in Finland, with a membership of more than 116,000 companies. Members represent various business sectors, such as trade, transport, services, industry and contracting.

Half the members are companies that employ people, and the other half are self-employed entrepreneurs.

Of the 88,000 employer companies in Finland, 52,000 are members of the Federation of Finnish Enterprises.

The Federation aims to improve the position of entrepreneurs and the overall conditions for entrepreneurship.

VTT Impulse 7

8  VTT Impulse

Y G R E N E E L B RENEWA IS TOMORROW’S REALITY Solar and wind power are viable sources of energy in many countries, including Finland.

Energy sector players now need to rethink their business to stay in the game.

Text Marjo Kosonen Illustrations Radek Karkulowski

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iant leaps are being made all over the world in harnessing renewable energy sources such as solar, wind, marine and geothermal energy for industrial and household use. This new trend is emerging in Finland, too, if a little delayed.

There are many who neglect to see Finland as a sunny or even particularly windy corner of the world, and think solar and wind energy only works for heat and electricity production in the southern latitudes.

– The truth is, Finland gets about as many annual hours of sunshine as southern Germany, for instance. Winter is long and dark, I admit, but in the summer we have daylight almost round the clock, particularly in the northern parts of Finland, says Robert Weiss, Senior Scientist at VTT. Worldwide, advances have been particularly brisk in solar energy, with the popularity of solar energy applications rocketing in the past five years.

The global solar electricity capacity, currently more than 100 gigawatts, is estimated to double in the next few years.

Behind this, Weiss believes, is the plunging price of solar panels. Manufacturing costs have taken a sharp fall following technological advancements, with fierce, even unhealthy competition driving prices down.

Compared to solar energy, wind power has long traditions. People have used the wind for various purposes throughout the ages. The increase in wind energy applications in recent years compared to solar energy has been modest.

The conditions in Finland tend to favour wind energy utilisation.

– It is windier here than in inland Germany, where wind power is exploited more effectively than anywhere in Europe.

Sustainable development bolsters growth Sustainable energy targets advocate the use of these inexhaustible energy sources.

Finland is committed to reaching the EU’s 20-20-20 targets, which means renewable energy sources should account for 20 per cent of total consumption by 2020. According to

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THE INCREASE IN SOLAR AND WIND ENERGY WILL CHALLENGE THE EXISTING POWER GRID AND MARKET SYSTEM.

“THE CONDITIONS IN FINLAND FAVOUR WIND ENERGY UTILISATION.” VTT’s calculations, Finland will reach this target by 2015.

– Energy production is a major contributor to climate change. As much as 60–70 per cent of greenhouse gas emissions are energy-induced, explains Petra Lundström, Vice President, Solar Business Development, Fortum Corporation.

The great advantages of solar and wind energy are their zero emissions and zero fuel requirement.

– Both technologies permit step-by-step, decentralised construction allowing the agile and flexible introduction of new technology.

Some countries find it politically important not to depend on other countries for fuel supply, says VTT’s wind energy team leader Petteri Antikainen.

– For a relatively small investment we could create competition in electricity supply and to change the competitive landscape in the energy markets. That’s a pretty big deal.

Solar and wind power go hand in hand Solar and wind energy are a powerful combination. The hours of solar energy production

STORING EXCESS SOLAR ENERGY THREE YEARS OF WORK with solar energy challenges

has taught VTT’s scientists to focus on overall system management and energy storage.

Once the question of storing the excess solar energy generated during long, sunny summer days has been resolved, opportunities for using solar energy will increase dramatically.

– The aim is to convert the excess solar energy into a substance that can be stored, such as hydrogen or natural gas. Once discovered, this solution will also benefit other forms of renewable energy, explains Robert Weiss, Senior Scientist.

Another major issue to be resolved is how to link solar energy to the built environment. How should town planning address the fact that households generate their own electricity with solar panels or geothermal energy?

Another technology currently in the pipeline utilises printed intelligence in the manufacture of solar cells.

VTT’s strong competence in power plant simulation is also a major asset in the solar energy sector.

VTT Impulse 11

60%

of greenhouse gas emissions are energy-induced.

in many countries closely mirror the daily consumption of electricity. Especially in hot climates, the sun shines precisely when energy is needed most, for a variety of purposes that include air-conditioning. During the winter in northern latitudes, when availability of solar energy is scarce, the winds are at their strongest.

– The challenge for solar energy in Finland is seasonal variation. Finland gets most of its sunshine in the summer and hardly any in midwinter. Electricity consumption, however, peaks in the winter when the weather is cold. This is why solar energy storage is such a major issue, comments Robert Weiss.

Meanwhile, in the heart of the Finnish winter when demand for energy is at its height, the winds are at their strongest, perhaps even twice as strong as in summer. Predicting the wind for any given day, however, is far more difficult than saying when the sun is going to shine.

– Even so, as Petteri Antikainen explains, power production is predictable.

Mindset the biggest impediment Why, then, has development been so slow with renewable energy sources?

One of the reasons is the need for expertise, but Robert Weiss thinks our mindset is the biggest impediment to further advance.

12 VTT Impulse

“THE CHALLENGE FOR SOLAR ENERGY IN FINLAND IS SEASONAL VARIATION.”

– People have failed to understand change; instead, they stubbornly maintain their old positions. The obstacles are mental rather than political.

Petteri Antikainen and Petra Lundström share his opinion.

– So far the energy business has demanded sizeable long-term investment. Product development in this sector has been very stable and predictable because of the long cycles involved, says Petra Lundström.

– Fortum is also a major player in the nuclear power sector, where operational safety is an absolute priority – there’s no room for risktaking. Most of our operations are consequently dedicated to underlining stability and security.

At the same time, however, we should be able to seek innovations and develop solutions for a new kind energy system for the future.

Lundström suspects the motivation to adopt new approaches may arise when needs must.

– Climate change and the rise of developing markets are likely to encourage ingenuity and groundbreaking ideas.

Energy market reshuffle VTT’s Weiss believes the energy supply system will soon be in a state of disruption, leading to a reshuffling of the entire competitive arena.

Energy sector players now need to rethink their business to stay in the game.

Fortum has also identified the impending change, which may well come quickly.

A few years ago the company spotted that solar panel prices had plummeted by as much as 75 per cent within a few years.

– Solar energy, once considered unrealistically expensive, was now becoming a very realistic alternative. As an electricity producing company, we understood the need to embrace the change and tap into the new, unique business opportunities – in good time, and in a proactive way, Petra Lundström explains.

– It is our objective to translate solar business into a significant new business area for Fortum.

I am convinced this will be an enormous business globally. This growth will be fuelled both by climate change and by the vast demand for energy in the emerging markets.

In the Nordic countries, Finland included, solar energy remains expensive because the markets are undeveloped.

– From a purely rational perspective, investing in solar energy isn’t worthwhile for a single-family home. So far, the people who have done so are green-thinking trendsetters who

see it as their personal contribution to the environment, Lundström concludes.

Markets are still taking shape. No-one knows which technology will dominate in the future, with the development of several interesting types of electricity-generating solar cells taking place. Another interesting solution is the solar collector, which collects the sun’s thermal energy.

– Silicon-based solar panels are going strong at the moment, but time will tell. Our job is not only to identify the right markets, but the right technologies, and this can be quite a challenge.

While the winning technology may still be a mystery, one thing is certain: the increase in solar and wind energy will challenge the existing power grid and market system.

In the new system, electricity is no longer generated by large power stations, but by the customers themselves. The resulting network will consist of major power-generating facilities, with millions of buildings supplementing their output.

This decentralised system is far more difficult to manage, yet the future balance between VTT Impulse 13

CORE COMPETENCES: COLD CLIMATE AND ICE VTT HAS “been practising wind power” –

electricity consumption and production must be maintained. Here there can be no turning back of the clock – modern society simply will not tolerate power outages.

Reaching maturity Wind energy markets have already reached a fairly mature stage, says Petteri Antikainen.

Finnish authorities have recently been trying to establish some ground rules.

– Local civil servants haven’t been too familiar with wind power. There’s been a lack of standard practices and procedures, and no opportunity of learning from the experience of others. Ambiguities in town planning and permit procedures have caused a great deal of extra work, says Antikainen.

He sees no real obstacles to technology development, however.

The basic technology is already adequate, with no need for any major breakthroughs at the moment. There is naturally always room for improvement; in the network infrastructure, for example.

But, as Antikainen points out, a fall in prices will make wind power more competitive and increase the popularity of wind energy.

And how bright is the future of solar energy?

Fortum’s Petra Lundström lets her imagination fly.

– The roofs of future houses may well be capable of capturing solar energy without the need for panels. We may even be able to charge our phones using intelligent clothing that collects the energy from the sun. Ultimately, it all depends on the customer, whose needs the solution is designed to meet. n 14 VTT Impulse

quoting Petteri Antikainen – for almost thirty years. When Antikainen joined VTT in the mid-1990s, only a handful of people were engaged in wind research.

Today, the number of wind power specialists on VTT’s payroll is closer to twenty.

Participants in cross-disciplinary projects also include several specialists from other sectors, such as steel and fibre.

– In terms of wind research, we have leading world-class competence in applications for cold climates, Petteri Antikainen points out.

Wind turbine rotor blades collect ice easily, decelerating the rotation of the blade.

The technology developed by VTT involves installing an electrically conductive layer near the blade’s surface. An ice sensor indicates when ice starts to form, and triggers the automatic heating.

Cold climate applications can also be used outside the northern regions; wind turbine rotor blades are prone to icing in mountainous areas, in Central Europe, for instance.

The first applications have already been launched, although power plant manufacturers remain cautious.

VTT is also involved in research and development on integrating wind power with the energy system. Research currently focuses on the amounts of wind power the power grid can absorb, and the possible adjustments required in the grid. The concrete results of this work include various measurement and assessment tools.

Petteri Antikainen expects to see future technology advancing in small steps: – There won’t be any magical technological revolution on the horizon.

COLUMN

Olli Ernvall Editor-in-chief VTT Impulse

“Both arctic wildlife and the Finnish economy could benefit from Finnish environmental technology.”

Cold Arctic winds warm up the Finnish economy THE DEBATE OVER THE ARCTIC region is strong; peo-

ple have various concerns over the region’s economic development. Sustainable technologies, however, will make it possible to find better balance between nature conservation and economic growth. This will require clearly formulated national and international economic policies.

The Greenpeace protest against Arctic oil drilling in September was an excellent indication of the global media attention being given to environmental protection and the controlled and sustainable use of Arctic resources. in both sustainable development and Arctic competence. According to Finland’s strategy for the Arctic region, adopted by the Government in August 2013, “Finland is an active Arctic actor with the ability to reconcile the limitations imposed and business opportunities provided by the Arctic environment in a sustainable manner while drawing upon international cooperation.”

To turn this policy into action, we must give serious thought to how effectively we have highlighted our strengths and become involved in the region’s decision-making process.

Russia and Norway are planning investments in excess of EUR 100 billion in the Arctic Ocean and Barents Region. According to estimates, 30 per cent of the world’s untapped gas and 13 per cent of its undiscovered oil resources are located in the Arctic Region. How does Finnish industry and R&D competence connect with this? Are the current players in the Arctic Region aware of Finnish environmental and Arctic competence technologies, and capable of utilising them? No! Unless we take active steps to promote them.

Turnover from offshore technologies in Finland totalled EUR 1.2 billion last year, with the share of exports at about one billion. Exports to northern Europe accounted for 28 per cent and Russia 9 per cent. The sector directly employs 3,600 people in Finland. About 80 per cent of the existing global FINLAND HAS MUCH TO OFFER

icebreaker fleet was built in Finland. As many as 70 per cent of the floating oil and gas production platforms – so-called ’spar’ platforms – have been built in Finland. These figures could serve as a good sales pitch and as proof of our achievements.

Our competence does not stop at Arctic marine technology; we are also experts in wind power solutions designed for cold conditions. In addition to competence in marine engineering, shipbuilding, marine operations, and environmental and oil spill prevention technologies, Finland has state-ofthe-art products available for immediate export.

These include vessel traffic service, ship reporting systems, and automatic vessel identification and communication systems. All these skills and technologies could be utilised in the Arctic Region.

ARCTIC WILDLIFE is extremely vulnerable, and

sets limitations on the entire process of natural resource utilisation. In addition to observing sustainable methods and principles in any mining or oil drilling operations, we will also need sufficient and sustainable aftercare plans.

I believe both Arctic wildlife and the Finnish economy could benefit from Finnish environmental technology, and our competence in materials, wind turbines, ship structures and maritime safety.

This issue offers an overview of some Arctic technologies. As indicated in the article written by Jaakko Heinonen, D. Sc. (Tech.), Arctic technology is one of the competence areas in which VTT is currently investing. VTT boasts special expertise in the mechanics and physics of ice, and the simulation of structures moving through ice. It has also a proven track record in wind power applications in cold climates, and ship performance and energy consumption management in icy conditions.

VTT’s competence, backed up with environmental technology, provides our customers and the Finnish industry with excellent opportunities for benefiting from Arctic technology, while respecting the nature. n VTT Impulse 15

IMPACT THROUGH

RESEARCH VTT has conducted international research on the results and impact of its operations. This research confirmed that VTT exerts a pivotal role as a promoter of the competitive ability of Finnish business enterprises and as a creator of wellbeing. The research was conducted by VTT’s innovation researchers together with the UK-based research company Technopolis Group.

50%

OF THE MOST COMPLEX INNOVATIONS are linked to

VTT competence. VTT’s participation focuses on the more complex innovations that offer significant novelty even by international standards.

43% OF FINNISH COMPANIES’ CORE TECHNOLOGY based

innovations are linked to VTT competence.

16 VTT Impulse

36%

OF THE FINNISH INNOVATIONS are linked to

VTT competence. In every fifth innovation, the share of VTT has been significant.

VTT is the most important R&D partner amongst public research organisations for Finnish enterprises.

ENTRY TO GLOBAL MARKETS.

Research shows a slightly higher success rate for innovations linked to VTT competence in reaching global markets.

1.

IN THE EU FRAMEWORK PROGRAMMES VTT is one of the

most significant research funding contractors at European level. In 2011, VTT ranked sixth amongst European research organisations in the measurement of reputation and in activity as a networker.

VTT’S IMPACT RESEARCH drew from the

HIGH SCIENTIFIC STANDARDS. The reference index

for the impact of VTT’s scientific publications during the years 2006–2008 was 1.17, which is above the average in international assessments. Only three Finnish research facilities or universities ranked higher than VTT.

SFINNO database of Finnish innovations as a key data source. The SFINNO database contains information on innovations generated by Finnish companies. The database currently covers a total of 5,000 innovations that have been commercialised during the years 1945–2009.

Information on the innovations registered in the database was collected from trade magazines representing 15 different sectors of industry. Other sources of information included Annual Reports of the top 20 Finnish companies and interviews with specialists.

Innovation refers to an invention that has been commercialised by a company or another organisation. The innovations registered in the SFINNO database must, by nature, be entirely new or provide major improvements to existing products.

The SFINNO database is maintained by VTT’s innovation reserachers.

VTT Impulse 17

SCIENCE Predicting the spread of microbes in spacecraft

A quick test detects phenolic compounds in drinking water CLEAN DRINKING WATER is a diminishing natural resource globally. VTT

has developed a simple and inexpensive test kit that detects phenolic compounds in water. Certain phenolic compounds are a health risk, and some may even cause cancer. Sources of phenolic compounds found in drinking water include industrial wastewaters, drug residues and pipes.

The phenolic compound testing method is based on a chemical reaction. A test stick indicates whether or not a water sample contains harmful phenolic compounds. If so, the stick changes colour within a few minutes. The test will be ready for market launch in 2 to 3 years. No such easy and inexpensive water quality test has been available before. VTT and the University of Helsinki, in cooperation with their industrial partners, developed quick tests for water quality in the WATERCHIP project co-funded by Tekes - the Finnish Funding Agency for Technology and Innovation. The project is part of Tekes’ Water programme.

VTT succeeded in reliably predicting the spread of microbes in closed spaces by using the CFD calculation method. Similar methods can be developed, for example for hospitals and public transport. The calculation model, developed in the joint BIOSMARSH project run by the EU and Russia, was validated in VTT’s test laboratory, and in a fully closed ecosystem in IBP’s BIOS-3 test room in Krasnoyarsk, Russia.

0,1 mg/l

of phenol

in drinking water is the detection limit of the test developed by VTT.

A miniature laboratory for testing blue-green algae

18 VTT Impulse

VTT has developed a fast and affordable testing kit for detecting the presence of toxic blue-green algae in water. The blue-green algae testing device developed by VTT and the University of Helsinki is like a miniature laboratory. Using this device, consumers themselves will soon be able to check whether water is safe for swimming.

Photo: Vesa Tyni

SCIENCE

Arctic scientist JAAKKO HEINONEN leans on an ice tank in

Otaniemi in Espoo.

– Model tests are carried out here, which involves using model ice to test the vessel structures, he explains.

Heinonen’s strongest competence areas are ice-structure interaction simulation and the modelling of ice loads on marine structures, especially offshore wind turbines.

The challenges to technological solutions posed by the Arctic environment had taken hold of him some years before.

– Fifteen years ago I was a post-graduate student at the Helsinki University of Technology. They started a research programme on ice ridges, which involved conducting experimental measurements on pack ice on the Gulf of Bothnia. It also involved numerical modelling of ice ridges, Heinonen recounts.

Heinonen completed his doctoral dissertation on the experimental measurement and numerical simulation of ice ridges in 2004.

He has done further research on the topic abroad, first through a researcher exchange programme in Germany in 2008, and later as a visiting researcher at the Norwegian University of Science and Technology (NTNU) at Trondheim in summer 2012, where he spent three months working in a large-scale Arctic research programme.

JAAKKO HEINONEN • Principal Scientist at VTT, D.Sc. (Tech.)

• Manager of the Arctic and Cold Climate Solutions innovation programme • Head of the Arctic Technology team

VTT Impulse 19

climate ARCTIC AND COLD

solutions Arctic climate change and its potential economic impacts are making news headlines around the world. This is big news for Finland, too, since Arctic technology holds great growth potential for sectors such as marine industry.

Text Jaakko Heinonen

20  VTT Impulse

surpass the additional challenges involved in Arctic operations, although surging shale gas production may change the situation somewhat.

Some of the oil and gas reserves at the bottom of the Barents Sea have already been discovered.

The Shtokman field project, for example, has been waiting nearly twenty years for drilling to start. The Norwegians have built the Snøhvit gas field on the island of Melkøya, and international oil companies are active in the Yamal region.

Cold climate research and the related competence are not restricted to the Arctic region; the same competence is needed in the Baltic Sea, the Caspian Sea and in mountain regions.

Wind turbines in the Spanish mountains are a case in point — the icing of the turbine rotor blades provides a challenge to which VTT’s Arctic competence has a solution: a blade heating system.

SCIENCE

T

Cold and ice the major challenges The Arctic poses a variety of challenges for people and equipment alike, the biggest being the cold weather and darkness, particularly when combined with rough seas and chilly winds.

Engineers are known for their ability to solve any kind of problem. The key to preparing for the challenges of the Arctic lies in identifying, specifying and anticipating risks. In the world of engineering this means obtaining sufficient

Photo: Pekka Juuti

he effects of global warming are particularly striking at the North Pole, where the ice cover was at its thinnest at the end of the summer 2012. The reduced ice conditions and longer summer season provide new opportunities for maritime traffic. The Northeast Passage, which offers an interesting shipping route from Europe to Asia, is largely ice-free in the summer.

In recent years, shipping companies have sent vessels on experimental cruises along the Northeast Passage, with the number of cruises reaching 46 in 2012 (Niini, 2013). Iceworthy ships and experienced crews can make the trip easily, but there are other challenges, such as Russia’s strict control over its territorial waters, and the small number of harbours. There are only five between Murmansk and Vladivostok, and these only open in the summer. But the Arctic has other things to offer besides marine transport routes, namely natural resources, particularly oil, gas and various minerals. Tourism and fishing are also major attractions.

The oil and gas industry has actively supported Arctic technology development for decades in order to promote offshore drilling, storing and logistics. Previous efforts have been limited due to high risks and costs. Now the demand for oil and gas, and consequently the price of these commodities, is high enough to

FIGURE 1.

Icebreaker Louhi during ice testing performed by VTT.

VTT Impulse 21

Photo: Kari Kolari Photo: Juha Kuutti & Kari Kolari

FIGURE 2.

Numerical simulation of moving ice crushing against a sloping offshore structure.

prior knowledge of the structural load caused by ice on the offshore production platform, for example, to enable adequate structural engineering solutions. Similarly, equipment maintenance can be pre-planned and scheduled to take place in fair weather, preventing unexpected maintenance needs interrupting oil platform operations.

Beautiful as sea ice may be, it poses a significant challenge to maritime operations in the cold regions. The thickness of a field of firstyear brash ice on the Arctic Sea may exceed two metres, while the pack ice ridges that form may be up to 30 metres thick. Moving with the winds and sea currents, these obstruct maritime traffic. In areas where the sea freezes, the ice loads on structures represent commonly the most significant load factor, which must be taken into account in structural design engineering. Most vessels are built to withstand the ice load, but ship-ice interaction is a further factor, particularly where a ship must remain static, such as a tanker attached to oil or gas pipes from the seabed. Blocks of old ice and icebergs also roam the Arctic Sea. To avoid collision, some floating offshore platforms are equipped with a removable sub-base, enabling them to manoeuvre to safety. Otherwise the iceberg must be moved aside, by towing, for instance. A well-known method for reducing ice load is the so-called ‘ice management’ technique. This involves a multi-task vessel continuously breaking up ice in the area of 22 VTT Impulse

FIGURE 3.

An ice-covered beacon off the coast of Porvoo.

operation into small pieces, significantly reducing structural load upon impact compared to a solid ice field. The effective utilisation of ice management techniques is currently one of the most popular themes in Arctic research.

Arctic research at VTT In response to increased activity in the Arctic, the Finnish government approved Finland’s updated Arctic strategy in August 2013, based on the previous strategy adopted in 2010. One of the key measures included in the strategy is the public research programme ’The Arctic operating environment and its potential’ (small strategic openings) launched by Tekes - the Finnish Funding Agency for Technology and Innovation. Another programme to be launched shortly focuses on renewable marine business, with special emphasis on the Arctic theme. The Academy of Finland is also about to launch its own Arctic research programme. Born and raised in a cold climate, Finns have an innate understanding of the challenges involved and the technologies required to address them, which makes us well positioned to seek a position among the leading Arctic technology specialists.

VTT’s strategy identifies Arctic and cold climate solutions as a key research area. Factors boosting the demand for VTT’s expertise include its cross-disciplinary competence, multi-technology solutions in a globally networked environment, and customer-oriented development work. VTT launched its Arctic

and Cold Climate Solutions innovation pro- additional local regulations, such as the Finngramme at the start of this year. The objective ish-Swedish ice class rules. Correspondingly, is to focus and develop our competence towards the International Maritime Organization (IMO) larger-scale multidisciplinary research pack- is considering the adoption of an international ages and business solutions – such as services code of safety for ships operating in polar areas built on numerical simulation – that can help to (Polar Code). VTT has taken research initiaovercome some of the challenges of Arctic con- tives aimed at improving the consistency of ice ditions. Another clearly defined objective is to class rules and making them simpler and more translate cold climate monitoring and diagnos- accurate. Key development tools in this work tics-related competence into business solutions. include the numerical modelling of ice-propulThis is bolstered by strong scientific exper- sion interaction and the corresponding fulltise in ice physics and mechanics, materials and scale propulsion measurements. Test runs meascoatings expertise, and an understanding of the uring ship propulsion and vessel performance prevailing conditions. Customers would also have been conducted in icy conditions for sevbenefit from our extensive knowledge and wide eral years. range of applications, particularly in areas such A vessel’s propeller undergoes extreme stress as marine and ship engineering, mechanical when a ship reverses into a pack ice ridge, causengineering, wind energy solutions, and infra ing the propeller hub and blades to impact with and housing construction. VTT boasts decades ice. Experimental measurements indicate that of experience in experimental research, and an in addition to the ice impact, the ice causes cavextensive data bank itation-induced stress for the applications peaks on the blades.

BEAUTIFUL AS SEA ICE MAY referred to above.

Cavitation is generTogether with numerBE, IT POSES A SIGNIFICANT ated by disturbance ical modelling and in the flow of water CHALLENGE TO MARITIME simulation excellence, around the propeller OPERATIONS IN THE COLD this builds a strong hub. Finding a solufoundation for future tion to this phenomeREGIONS. innovations. non forms the core of VTT’s wind power VTT’s research. research is focused on developing solutions for VTT’s development work in ship and marine cold climates. Our solutions include a blade engineering research focuses on expanding the heating system that can be customised to meet ship simulator to allow virtual ship navigation in the specific needs of each turbine manufacturer. ice-covered seas using a real map view.

Adequate information on weather conditions Ship simulation takes into account several at the wind turbine location allows us to model factors, such as ship resistance caused by water the blade icing process and optimise the heating and ice, and its impact on the ship’s motion, arrangement and placement of integrated heat- power demand and steering. Our expertise ing mats. in simulator systems can also be employed in In the offshore wind power segment, our in- studying ship performance in ice, as increased depth understanding of the prevailing ice con- energy-efficiency requirements for ships, for ditions, including ice thickness and recurrence example, and the consequent loss in propulsion values and the probable occurrence of pack ice power, presents a challenge for ship navigation ridges, helps us accurately define the ice loads in ice-covered waters. affecting the turbine foundation and support VTT, together with other Finnish environstructures. Overall simulation of turbine-ice mental agencies (Finnish Meteorological Instiinteraction allows us to verify the dynamic ice tute FMI, Finnish Environment Institute Syke), load and ice-induced vibration, which must has played an active role in the development of be taken into account during the design pro- the satellite-based icebreaker assistance system cess. This information, in turn, helps the turbine IBNet. IBNet provides an operational picture by manufacturer to optimise turbine superstruc- combining information on ship locations, satelture, preventing ice vibration from disrupting lite images, and weather and ice forecasts prothe generator while in operation. vided by meterological institutes. Captains are The design and approval of ships and marine able to choose the optimal route for their vespropulsion systems is regulated by ice class sels based on near real-time information on ice rules. Several classification organisations have conditions and marine traffic in the sea area. specified their own rules, and there are also This technology is widely used on the Baltic Sea VTT Impulse 23

Photo: Vesa Tyni

THE INTERACTION BETWEEN MOVING SEA ICE AND MARINE STRUCTURES IS A HIGHLY COMPLEX PROCESS.

JAAKKO HEINONEN

Jaakko Heinonen (D. Sc. Tech.) is the Principal Scientist responsible for the Arctic and Cold Climate Solutions innovation programme. He is also the head of the Arctic Technology team.

Dr. Heinonen’s strongest competence areas are ice-structure interaction simulation and ice loads on marine structures, especially offshore wind turbines.

24 VTT Impulse

and can be transferred to the Arctic Sea region for commercial vessel traffic, although this will require some improvement in the region’s satellite services and telecommunication capabilities.

Heavy snowfall over the past few winters, piling up on city streets and obstructing rail traffic, has been regarded as a problem. In addition to the traditional problem-solving methods, VTT is exploring the potential of using snow for practical purposes. Rather than waste, snow should be considered a commodity which, properly stored, could be used for cooling large data centres and other buildings.

Small countries like Finland need international cooperation to ensure efficient use of research resources; VTT’s cooperation with the Norwegian Sustainable Arctic Marine and Coastal Technology SAMCoT programme is a case in point. This allows the Finnish industrial sector to benefit from significant investment by the multinational research and business community in the development of Arctic marine technology solutions. We have learnt through international cooperation that Finns are highly appreciated, not only for our modelling and simulation competence, but for our ability to conduct experimental research and our excellent test facilities.

The scientific perspective: major challenges The challenges associated with Arctic conditions have been studied for some time, yet a few basic issues remain scientifically unresolved. Two such are the accumulation of ice on the surface of structures and the mechanisms of ice failure.

Among the more aggravating challenges with cold climate structures is the surface accumulation of ice. Although de-icing methods have been developed for aircraft wings, new solutions are required for marine structures and ships.

VTT has been working vigorously on a theory for the mechanisms involved. The weight of ice accumulating on power lines, for example, has caused national disasters in North America, Germany and elsewhere. Prospective solutions have included the development of coatings to prevent or limit ice adhesion. Though a breakthrough in this technology is still awaited, VTT’s innovations have helped develop a measurement method for determining the adhesion strength of ice on a material.

The interaction between moving sea ice and a given structure is a highly complex process. The biggest challenge lies in unveiling the mystery of how ice breaks up. Even after impact with a marine structure, the kinetic energy of sea ice

driven by the wind and sea currents is usually sufficient to keep it in motion. Ice breaks up in different ways, including crushing, bending or cracking. Scientific evidence on the mechanisms of crushing, essential for modelling ice loads in structural design engineering, remains inconclusive. Significant advances have nonetheless been made over the past ten years in the modelling and numerical simulation of the ice-structure interaction process. While previous models were based on empirical evidence, the current theoretical models are shaped by ice mechanics and are thus experimentally verified, both in laboratory scale and in full-scale field tests.

The rapid increase in data computing power has enabled complete ice-structure simulation, including modelling a large part of the ice field.

Measurable simulation involves the simultaneous modelling of the build-up of ice load on the structure and the break-up of the ice field. The contribution of Finnish scientists – from VTT and Aalto University (ref. Ahravuo and Strutsi) – has been significant.

A key priority in reducing the risk of serious environmental hazard in future Arctic operations is preparedness. All organisations engaged in operations in the Arctic region will be required to develop their preparedness capability. Earlier oil spill response techniques work reasonably well in open water, but neutralising oil in icy conditions is another matter: the oil spreads everywhere, adhering to ice blocks, getting trapped between layers of ice and underneath, and partly mixing with water (Beer, 2013). Existing methods are largely mechanical and can only clean up a fraction of the spill.

Other methods – chemical or biological dispersion, burning – have yet to prove themselves, giving rise to a demand for new innovations.

If the Northeast Passage opens to commercial traffic, the northern coast of Russia will witness a boom in harbour construction. Vessels will require a much denser harbour network before sailing long distances in challenging conditions.

Harbours, in turn, need extensive infrastructure: houses for people and opportunities for a good quality of life. This calls for ecoefficient construction based on local material supply, as well as energy self-sufficiency relying primarily on renewable energy sources. Other issues to be resolved include water supply and waste management solutions, road or rail transport connections, telecommunications, and so on. Huge investment will be required, which also offers a wealth of opportunities. Some scientific challenges involved in the local conditions – perma-

frost and its potential melting in the near future – need to be resolved before any practical implementation.

Barriers to development Use of the Arctic seas for commercial vessel traffic and access to the region’s natural resources involves more than just technological challenges.

Maritime traffic in the Northeast Passage, for example, has been limited by tight restrictions on access to Russia’s territorial waters. Nor is the competition for rights to the natural resources limited to Arctic countries, which include those controlling areas north of the Arctic Circle; others have also become increasingly active. In May 2013, the Arctic Council granted observer status to China, India, Italy, Japan, South Korea and Singapore. Political decision-making is now required for determining the environmental demands for maritime traffic and setting principles regarding the exploitation of natural resources. Environmental organisations are also actively participating in related public discussions.

The road to sustainability in the Arctic region requires an in-depth understanding of the dynamics of change currently under way in the region. Besides the rising temperature and the resulting changes in ice conditions, more research is needed on the changes in ocean currents, water level and the biological growth environment. n

References Finland’s Strategy for the Arctic Region, Prime Minister’s Office 2013 IBNet data system: www.vtt.fi/sites/ibnet SAMCOT programme: www.ntnu.edu/samcot Niini, M. One Year further in Arctic Developments, The 9th annual Arctic Shipping Forum, 23–25 April 2013, Helsinki Beer, N. Oil spill response in the Arctic and ice-covered waters: Options, challenges & lessons learned, The 9th annual Arctic Shipping Forum, 23–25 April 2013, Helsinki AHRAVUO project: www.ahravuo.vtt.fi STRUTSI project: www.strutsi.vtt.fi VTT’s innovation programme

VTT Impulse 25

without ENVIRONMENTAL MEASUREMENTS

borders Satellite observation knows no borders or boundaries. With hundreds of satellites observing the Earth, the huge body of information they provide can, without any exaggeration, be referred to as Big Data.

Text Tuomas Häme

26 VTT Impulse

T

SCIENCE

he world’s population is expected to reach Framework Programme that involved assessnine billion by 2050. The growing pop- ment of deforestation and forest degradation in ulation needs more food, and conse- the tropics. The deforestation observation proquently more land for farming. Forests ject is part of the international REDD (Reducare cleared to make way for farming land, accel- tion on Emissions from Deforestation and forest erating deforestation. At the same time, urban- Degradation) programme, under which develisation is progressing worldwide. Orbiting the oped countries provide developing countries Earth are more than a hundred satellites observ- with funding as an incentive to end deforestation. ing our natural resources and the atmosphere. The programme, which also fosters the sustainaTirelessly, they collect measurements and send ble use of forest resources, requires a verification them to terrestrial stations to be modified, shared system to allow the funding countries to moniand archived. The environmental data collected tor outcomes, and has monitoring based on satby satellites helps to promote sensible and eco- ellite images as its key component. Steps are now nomic use of resources, reducing the pressure for being taken to include the REDD programme destructive changes in land use. in the next climate change agreement. Although The bodies of data collected by satellites are the successor to the Kyoto Protocol is still on the enormous. The first of a pair of European Senti- drawing board, REDD projects are already under nel-2 satellites for observing natural resources is way in several tropical countries. scheduled for launch in 2014. Each day, these two satellites will collect approximately 1.6 terabytes From digital cameras to imaging radars of digital image material, enough to fill 2,000 CDs Remote sensing instruments in satellites are of storage capacity. In one year the satellites will either active or passive. Passive instruments collect 2.4 petabytes of information. After twelve include digital cameras, whose wavelength range years this will have become extends from visible light to 27 petabytes, or nearly thermal radiation of approxnine million CDs. With imately 10 micrometres.

THE BODIES OF hundreds of such satellites, Passive instruments with DATA COLLECTED we can certainly call this wavelength range extendBY SATELLITES ARE Big Data. ing to microwaves, or cenRelatively high resotimetre bands, are also used ENORMOUS. lution instruments have for sensing soil moisture, been used since 1972 to but the low level of radiacapture images of the Earth. Since the majority of tion from the soil results in image resolution of these digital images have been archived, we can only a few dozen kilometres. Optical range digital wind the clock back forty years and observe such cameras offer the best terrain resolution capacity. global phenomena as urbanisation and deforest- Images with half-metre resolution are now comation. mercially available where individual human figSatellite imagery, or remote sensing research, ures are discernible if in open space. began at VTT in the early 1970s. Since then, we Key instruments used in the microwave band have been using the satellite image material to include imaging radars. These send a microwave promote efficient and sustainable use of natural pulse, registering the reflections from the target resources. Over time, we have accumulated spe- region as the satellite moves forward. These mulcial expertise in the remote sensing of the natu- tiple reflections are post-processed to form the ral environment, particularly forestry, land use digital radar image. The synthetic aperture radar applications and sea ice monitoring. We work can produce images at metre resolution. A major closely together with the forestry and maritime advantage of radar satellites is their ability to store industries; the forestry industry uses applications images regardless of time or season, although developed by VTT to plan timber procurement, humidity in the target region can affect image while up-to-the-minute satellite images help ice quality. Allowance must also be made for the breaker crews select the optimal routes. different image information provided through Satellite observation knows no borders or radar’s use of microwave frequency. Unlike with boundaries. In 2010–2013, VTT coordinated optical images, it may be difficult, for example, to a project under the European Union’s Seventh differentiate between various tree species.

VTT Impulse 27

Medium resolution (10-30 m) multitemporal images

Ultra-high resolution images (0.5 m) for teaching purposes

Field measurements and laser beam scanning data for teaching purposes

Ultra-high resolution images for accuracy calculation

Field measurements for accuracy assessment

Multi-temporal land cover classification

Accuracy assessment

Additional material

Land cover -> Land use Biomass

Change statistics t–t+n FIGURE 1.

From satellite images to products delivering added value.

On board aircraft, an increasing common observation method uses laser beam scanning to provide an accurate image of the topography and tree biomass. No similar system for satellites is available or anticipated. The experimental laser instruments in satellites are primarily intended for measuring the thickness of glaciers.

The size of images generated by satellites operating at an optical resolution range of 10–30 metres varies between 70 kilometres square and 185 kilometres square, increasing from 2015 to nearly 300 kilometres square. Up to now, each satellite has been imaging Finland and other northern regions a few times a month, and equatorial regions slightly less frequently owing to the polar orbit producing image overlap in the north. With the launch of the new satellites, imaging frequency will rise to several times a week, resulting in the likely availability of cloud-free images many times during the growing season. Above ten-metre resolution, material is increasingly available at no cost whatsoever, while ultra-high resolution images (0.5 28  VTT Impulse

m) cost around 20 euros per square kilometre.

Prices are expected to fall with increased competition. Daily access to satellite radar material can be provided, but radar images from most satellites carry a fee. The Americans have so far dominated the natural resource satellite markets, but now the European Space Agency ESA, in cooperation with the EU, and the Asian and Latin American countries are also launching their own satellites. Images are usually downloaded over the Internet.

Reference material teaches how to interpret a satellite image Interpretation of remote sensing images also requires reference material, such as precise map coordinates either from measurement points or from topographic maps. A digital elevation model provides ortho-rectification, the removal of any geometric terrain distortion in the images. For radar data the elevation model is mandatory because the radar operates at a slant, with objects facing towards radar appearing too bright and those facing away too dark.

VTT has developed an interpretation process that combines the benefits of satellite images with varying degrees of definition. Initially developed for tropical forest imaging, the method is equally suitable for use in other environments. In the tropics, availability of material collected in situ is usually scarce, highlighting the importance of maximising efficient use of satellite images (figure 1).

Medium resolution is used for satellite images of the overall area of interest, with high-resolution for selected target areas only. High-resolution images serve two purposes: to teach how to map the entire area using the medium resolution images, and to assess mapping accuracy. Images for assessment can be selected using statistical sampling methods, such as the first stage of stratified two-stage sampling. This material is not used for teaching the mapping models. Other teaching aids include field measurement data and the data obtained using laser beam scanning on board an aircraft. Material obtained on site is necessary for accurate biomass assessment.

Another VTT development is the Relasphone mobile phone application for collecting

VTT HAS DEVELOPED AN INTERPRETATION PROCESS THAT COMBINES THE BENEFITS OF SATELLITE IMAGES WITH VARYING DEGREES OF RESOLUTION. measurement data in forests, enabling anyone to assess the volume or value of forest timber.

Measurements obtained with mobile phones equipped with GPS coordinates can also be used to teach the interpretation of satellite images (Figure 2).

The numerical interpretation of the images follows the same general principles regardless of the algorithm. The map coordinates of the known ground objects are used to select the intensity values from the satellite images. At this point, both the terrain content and the corre-

FIGURE 2. The Relasphone application for forest measurement.

VTT Impulse  29

ALTHOUGH COSTS ARE HIGHER, THE ACCURACY IS FAR GREATER.

TUOMAS HÄME

Research Professor Tuomas Häme is a Doctor of Science in Agriculture and Forestry, who prepared his doctoral disseration on forest sciences at the University of Helsinki. His research focuses on global satellite remote sensing of forests. Mr Häme is a member of the European Space Agency ESA’s Sentinel 2 Mission Advisory Group, and the Finnish delegate in the ESA’s remote sensing science and technology group.

30 VTT Impulse

sponding intensities are known. In the Probability model developed by VTT, the medium resolution satellite image with multiple wavelengths is first classified into tens of homogeneous intensity classes using k-means-clustering. A distribution of the terrain content for each class is obtained from the training material, as it is very rare that a certain intensity level would represent just one single terrain type. For example, 60% of one intensity class may be forest, 30% field, and 10% inhabited area. The final estimate is calculated as a continuous variable value for each pixel of the medium resolution image. This indicates the probability of the pixel representing, for example, forest. A final map can then be produced on the basis of the results, where each object only represents one class.

The algorithm outputs estimates of continuous variables, such as biomass, directly. There are several algorithms for interpretation, none of which appears superior over others. Algorithms familiar from machine learning, such as support vector and decision tree methods, have recently gained popularity. Their advantage is the ability to combine many different types of image material into the interpretation.

Drawbacks include non-parametricity, which enhances the risk of overlearning. The model may work very well with training material, but when applied in practice, results are poor and contain systematic errors. In a VTT comparison test the results showed more variation associated with the image material than with the algorithm used to interpret it.

The iterative process – dividing the training material into several groups and correcting the model in stages – has proved a valid approach, being particularly successful in reducing systematic errors. Where the natural resources of the entire region are being examined, a systematic error is worse than incorrect local interpretation results. The REDD programme, for example, involves paying the forest owner compensation for carbon sequestered, in which case the local errors are less significant. Forestry action planning, meanwhile, relies on the consistency between information provided in maps and the reality on site, and a moderate over- or underestimate of biomass can be tolerated.

The accuracy of the map interpretation is tested with independent material. Calculation is made of its overall accuracy and, where classification is concerned, the ’producer’s’ and ’user’s’ accuracies that will reveal systematic errors.

Where statistical sampling has been used to select the independent material, the independent class-specific areas and their confidence intervals may be calculated for the entire region.

In the ReCover project, a seventh framework programme for REDD coordinated by VTT, the classification accuracy of forest and non-forest in four tropical regions varied between 85 and 97 per cent. Although the task may seem simple, defining a boundary between forest and nonforest is difficult even on site, as in many places the forest turns gradually into shrub, with no clearly discernible boundary.

Interpretation of satellite images and other remote sensing materials rarely meets the user’s needs and generally needs to be re-worked. In Figure 1, additional data helps to reclassify land cover as land use; ’area with trees’ becomes ’city park’, for example. Models similarly help to convert tree volume into dry biomass. A final result might be the change matrix of carbon sequestered in various land use classes within a limited time frame. This information helps to determine the grounds for compensation.

In the above example, accurate satellite images were used as training material for the interpreta-

FIGURE 3.

tion of a large region. In countries with intensive forest management, such as Finland, interpretation should generally be based on ultra-high resolution images. Although costs are higher, the accuracy is far greater. For analysis, image segmentation software should be first used to divide images into units with homogeneous terrain types. Numerical interpretation processes these segments in the same way as lower resolution pixels. Accurate images also permit the location of individual trees and identification of the tree species.

Revealing changes With training material for previous years often unavailable, changes within a region can be revealed through comparison of current and previous images. VTT’s objective was to analyse changes in Mexican forests, including changes within specific forest types and in terms of growth and reduction of forest areas. Pairs of earlier images were compared for intensity with images from 2010. Step-by-step examination was avoided to eliminate the risk of error accumulation. The differences in the image intensities and the land cover classifications for 2010

An interpretation of trees from a high-resolution satellite image. Geo Eye satellite, resolution 0.5m.

VTT Impulse 31

1990 FIGURE 4.

2000

Image interpretation result on forest cover changes in Mexico between 1990 and 2000 by VTT. A detail of mapping in the Chiapas state. Area size 14 km by 11 km. On the upper row a false color composite images depicts vegetated areas in red color. On the lower row the output maps are shown with forested areas in green and other areas in yellow. Landsat satellite data.

SATELLITE MONITORING OFFERS FANTASTIC OPPORTUNITIES FOR BETTER USE OF NATURAL RESOURCES.

32  VTT Impulse

2010

were used to derive forested area classifications for previous years, as well as estimates of the tree biomass growth and decrease within forest class.

The estimation algorithm was based on differences in image pair intensity and the logical development of intensities within image pairs.

Satellite monitoring offers fantastic opportunities for better use of natural resources, although it has its limitations. As the biomass volume grows, signal saturation will begin to limit tree stand interpretation, making accurate assessment of large biomass volumes problematic and unreliable. This will occur at approximately 300 cubic metres of tree trunks per hectare, equivalent to around 200 tonnes of total dry biomass. Viewing from above presents great difficulty in assessing tree diameter, let alone the quality of tree trunks.

If the input data is accurate, repeated satellite imaging and growth projections might result in reliable data on forest resources in target areas featuring high volumes of biomass. Data source pooling is currently one of the key areas of research in the field of remote sensing.

Work performed in the industrialised countries is expensive, which is why the image analysis process must be automated to retain and

THE SENTINEL-1 RADAR SATELLITE WILL BE LAUNCHED IN SPRING 2014.

References Antropov, Oleg; Rauste, Yrjö; Ahola, Heikki; Häme, Tuomas. 2013 . Stand-level stem

improve the competitiveness of the method.

The analysis and management of this vast body of data requires automation as it is simply too much to handle manually. In autumn 2013, VTT began to coordinate a three-year North State project. Part of the EU seventh framework programme, this project provides fully automatic methods for the assessment of carbon and water balance in northern regions. The system being developed can learn from its previous estimation results by using them as training materials when it obtains new input data. Results can improve continuously on the strength of the constantly expanding competence base.

volume of boreal forests from spaceborne SAR imagery at L-Band. IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing. IEEE, vol. 6, 1, ss. 35 – 44 doi:10.1109/JSTARS.2013.2241018 Häme, Tuomas; Kilpi, Jorma; Ahola, Heikki; Rauste, Yrjö; Antropov, Oleg; Rautiainen, M.; Sirro, Laura; Bounepone, Sengthong.

2013. Improved mapping of tropical forests with optical and SAR imagery, Part I: Forest cover and accuracy assessment using multiresolution data. IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing. IEEE, vol. 6, 1, ss. 74 – 91 doi:10.1109/

Small nations fed on European investment become space giants The European Union and the European Space Agency ESA have invested EUR 3.2 billion in spaceborne environmental observation. New funding granted to this programme, named Copernicus, for the period 2014–2020 totalled EUR 3.8 billion. At the heart of Copernicus is the Sentinel satellite programme, featuring five different satellite types. Up to now, pan-European programmes involving satellite imaging of natural resources have been of a project nature, with no continuity. The Sentinel programme, on the other hand, is expected to continue for an indefinite period. The first of the Sentinels, the Sentinel-1 radar satellite, will be launched in spring 2014, and the Sentinel-2 providing highresolution optical images at the end of the year.

This high-quality material will be distributed free of charge, which from the service development perspective puts small countries like Finland on the same level as larger countries equipped to run their own national satellite programmes. Finland is well positioned to succeed in areas such as the global forestry service business and Arctic shipping support systems. That Finland will be affected by international competition is certain, though, as satellite observation knows no boundaries. n

JSTARS.2013.2241019 Häme, Tuomas; Rauste, Yrjö; Antropov, Oleg; Ahola, Heikki; Kilpi, Jorma. 2013.

Improved mapping of tropical forests with optical and SAR imagery, Part II: Above ground biomass estimation. IEEE Journal of Selected Topics in Applied Earth Observations and Remote Sensing. IEEE, vol. 6, 1, ss. 92 – 101 doi:10.1109/JSTARS.2013.2241020 Häme, T. Sirro, L., Cabrera, E. Enßle, F., Haarpaintner, J., Hämäläinen, J., de Jong, B., Paz Pellat, F., Pedrazzani, D., Reiche, J. ReCover: A concept for tropical forest assessment for REDD . Proceedings of ESA Living Planet Symposium, Edinburgh September 9-13, 2013. (In press) Sirro, L., Häme, T., Antropov, O., Hämäläinen, J., Latva-Käyrä, P., Paz Pellat, F., de Jong, B. Comparison of optical and SAR data in tropical land cover classification for REDD+.

Proceedings of ESA Living Planet Symposium, Edinburgh September 9-13, 2013. (In press) http://www.relasphone.fi/ www.recover-redd.eu

VTT Impulse 33

new

SYNTHETIC BIOLOGY CREATES

industrial activities

Synthetic biology is hailed as one of the leading breakthrough technologies destined to make significant contributions towards solving the major problems of humankind.

Text Merja Penttilä

34  VTT Impulse

V

Sustainable raw materials

Synthetic production organism

Platform chemicals

SCIENCE

TT wants Finland to benefit from flavour compounds in the product. The revolutionthe wealth of opportunities provided ary advances in gene technology in the 1980s enaby synthetic biology. This requires bled the use of yeast for producing human insubroad-based cooperation with both lin, moulds for producing antibiotics and industrial domestic­and international research and busi- enzymes, and microbes for producing transport ness ­partners. fuels such as bioethaVTT is in the pronol from lignocellulose cess of building a globand other renewable WE ARE MOVING ally excellent research resources.

INTO THE AGE OF and education network SYNTHETIC BIOLOGY. that works closely with Dawning of the age the industrial sector. of biology This cooperation allows We are now moving us to make extensive use of the unique biologi- into the age of synthetic biology. Our undercal systems as the source of inspiration for applied standing of the genomes of organisms and the research, and to establish new industrial activities nature of biological mechanisms has grown creating lasting, sustainable bio-based solutions for exponentially, contributing to the rapid advansociety. ces in synthetic biology.

Biological phenomena have been valuable in This has sparked new business activity, particuindustrial production for centuries; the produc- larly in the USA. The commercialisation of quick tion of beer and wine, for example, is based on tra- and inexpensive DNA synthesis enables the design ditional biotechnology, where a microbe (in this and engineering of countless new genetic combinacase ordinary baker’s yeast) produces alcohol and tions, which are then placed in the selected organ-

End products

CO2 Synthetic metabolic pathways

Microbial cell

FIGURE 1.

Synthetic biology helps to build high-performance production organisms, namely cell factories able to produce the same platform chemicals that the petrochemicals industry makes from oil.

Microbes can be fed the required carbon from renewable plant materials or from carbon dioxide, while some use sunlight as a source of energy. Synthetic biology methods allow the design of entirely new intracellular reactions and novel production organisms. These cell factories are capable of the efficient production of multiple new chemical compounds for the manufacture of fuels and materials currently made from fossil raw materials.

VTT Impulse 35

ism – such as a microbial cell – to drive production of desired compounds. With methods adopted from automation and microelectronics, extremely large quantities of microbial strains can be screened to identify those best for production.

Indeed, we have climbed to an entirely new level of knowledge in biology, allowing us to customise biological functions. Some advanced examples include the synthetic microbes developed by Craig Venter, and the research conducted by Jain Chin’s team involving the building of an entirely new genetic code based on four nucleotides instead of three.

The synthetic biology approach changes the very nature of research, and calls for a paradigm shift –

MERJA PENTTILÄ Merja Penttilä, Ph.D., is a long-standing employee of VTT who was appointed Research Professor in biotechnology in 1999.

Her areas of expertise include industrial biotechnology, particularly microbial production of enzymes, chemicals and fuels using gene technology and metabolic engineering. She has an extensive background in biorefining and biotechnology focusing on the use of renewable resources, especially lignocellulose.

Merja Penttilä was the director of the Academy of Finland’s Centre of Excellence in White Biotechnology – Green Chemistry Research in 2008–2013.

36 VTT Impulse

in terms of our skills in biology, the equivalent of that from reading to writing.

Biology meets engineering In the future, we will be able to create new, purpose-built biological systems by combining standardised biological molecules, components and devices in any way we choose. The functioning of these parts and components, and of the entire cell in which they function, can be mathematically modelled, and the mechanisms regulating cell activity pre-designed. This is where biology meets engineering.

Biological functions will inspire us to develop numerous new ideas with commercial value. For the moment, however, this research is still in its infancy, with only a few application examples of synthetic biology published.

To identify the simplest and most optimal synthetic solution to a problem we want to resolve, we need to transcend existing knowledge, accelerate the evolution, and screen enormous amounts of artificial biological combinations. Automation, MEMS and measurement technology often play a crucial role in successful synthetic biology projects.

Engineering competence should also be exploited in modelling, construction and standardising synthetic biology systems.

Synthetic biology is expected to have a large impact on several industrial sectors, such as pharmaceutical, wood processing, energy, material and chemical industry. It has been stated that the impact of synthetic biology could be as great as that of synthetic chemistry a hundred years ago. Surprising new solutions and applications are anticipated, most of which we are yet to even dream of.

Up to now, biological systems have been considered too complex to manage and manipulate, and current industrial applications are based largely on natural biological phenomena. In the future, however, once we have created the suitable technology and competence platform, only our imagination will limit the different applications.

Energy and carbon-efficient processes Development efforts in the field of synthetic biology are driven by the need to identify new, sustainable solutions for the industrial production of fuels, chemicals and materials. To reduce greenhouse gas emissions, fossil resources must be replaced with bio-based plant materials. Alternatively, carbon dioxide can be used directly as a raw material.

The production processes must be highly energyand carbon efficient. Synthetic biology enables the design and engineering of new biochemical reac-

Systems biology Gene technology

1st generation cell factories

2nd generation cell factories

Synthetic biology

3rd generation cell factories

Raw materials and sugars naturally used by the microbe (e.g. starch, glucose, lactose)

Broadened substrate range (e.g. (hemi)cellulose, xylose)

Tailor-made carbon and energy use (e.g. waste CO2, methanol, glycerol)

• Use of natural organisms, no genetic engineering

• Transfer of combination of genes found in nature to the production organism

• Design of new-to-nature genes, gene combinations and synthetic metabolic reaction pathways, and ultimately entire cells

• Strain improvement by random mutagenesis with chemicals and radiation

Organism specific products e.g.

• alcohol and flavour compounds with wine yeasts • mixture of acetone, butanol and ethanol (ABE) with bacteria

FIGURE 2.

• Strain improvement by targeted gene expression and inactivation

New traits/products in old hosts e.g • human insulin with yeast • high levels of industrial enzymes with fungi • 2nd generation bioethanol (C5 fermenting Saccharomyces yeast)

• Strain improvement by rapid automated gene assembly and transformation, combined with very highthrough-put screening

Novel products in tailor-made hosts, eg.

• biotech production of current petrochemicals • novel jet fuels produced with yeast • engineered spider silk for superior materials

Industrial biotechnology evolution.

tions and alterations in the energy and raw material requirements of the production microbes in a way that allows more efficient manufacture of new products, and enables sustainable industrial processes. New industrial biotechnology will be one of the cornerstones of future biorefineries.

Finland aims to be at the forefront of these developments, building its industrial activities on the utilisation of natural raw materials and the principles of sustainable bioeconomy.

VTT builds high-performance synthetic cell factories VTT will focus its research and technology development efforts on creating synthetic microbes that offer the most efficient use of renewable carbon sources for bioproduction.

One of the long-term research goals is to modify biological components that permit the use of carbon dioxide or methanol as a raw material and light as a source of energy. Synthetic cell factories will be created that are equipped to use industrial waste streams and monocarbon (C1) raw materials and turn them into chemicals.

Other areas of interest include advanced modelling, automation and cell screening methods for significant acceleration of production microbe development work. This should facilitate the introduction of biotechnical production processes in the industry. The results of this research are generic, in other words, available for a wide range of other future applications. n

VTT Impulse 37

TECHNOLOGY New solutions improve indoor air quality

Shorter power cuts POWER CUTS CAUSED BY STORMS can be shortened using a tool developed by

VTT. This helps to reduce the costs and damage arising from power cuts, such as faults in household appliances and frozen water pipes. The tool can be used to simulate mutual dependencies between mobile communication networks and electrical grids in different fault scenarios, including damage caused by storms. This information can assist in evaluating the length of power cuts experienced by consumers, and lead to them being shortened through subsequent improvement in the reliability of networks.

The simulation tool evaluates the interdependence of mobile communication networks and electrical grids in the case of failure, permitting study, for example, of how a storm of a certain magnitude damages first the grid and then the networks. Recent storms in Finland indicated that impaired mobile communication networks interfere with automation, slow down repair work on the electrical grid and lengthen power cuts significantly. The simulation tool allows energy companies to study how and where in the electrical grid automation and remotely controlled isolator switches could be used to minimise the power outage.

The simulation tool will be ready for operational use in 2015. The tool supports current mobile network technologies, but can also be upgraded to support future network technologies, such as LTE-A, which is set to be the future standard for mobile networks.

VTT has developed highperformance air filtration solutions capable of removing 90 per cent of small particles in indoor air. The new filtration solutions can be installed in existing ventilation systems. Annual operating costs are EUR 10 per square metre, or lower. This solution will also help to address mould problems.

90 % of small particles in indoor air can be removed with new, more efficient air filtration solutions.

Intelligent street lights The new LED street lights developed by VTT adapt to the ambient conditions with the help of sensors and wireless control, allowing them to be dimmed on the basis of natural light, environmental conditions and the number of road users. The intelligent street light system is 50 per cent more energyefficient than traditional lights on the market.

38  VTT Impulse

Photo: ESA

TECHNOLOGY

New information on the universe THE EUROPEAN SPACE AGENCY ESA’s Planck space telescope com-

pleted its scientific mission and was switched off on 23 October 2013. Planck was equipped with a high sensitivity, high precision radio receiver for the 70 GHz channel, developed by VTT together with other Finnish scientists.

The EUR 400 million Planck mission involved measuring cosmic microwave background radiation in an orbit near the L2 point. The signals picked up were used to collect new information that enables more precise estimates of the evolution and age of the universe, and the amount of dark matter and energy.

The world’s most sensitive radio receiver was a focal instrument for the Planck mission, operating flawlessly from the mission launch until its decommissioning.

The 70 GHz receiver was developed by a team of 15 Finnish scientists led

by MilliLab, the joint research laboratory of VTT and the Aalto University. It took more than ten years to develop the small, high sensitivity device.

VTT Impulse 39

TECHNOLOGY

KEY TERMS Cyber security, cyber threats, internet, cyber crime, data transmission KEY PERSONS Jukka Rautava, Matti Mantere, Reijo Savola KEY MESSAGE Increasing levels of networking and the growth of data lead to bigger challenges for information security.

VTT CONTACT jukka.rautava@vtt.fi MORE INFORMATION www.vtt.fi

Cyber 40  VTT Impulse

TECHNOLOGY

Finland’s Cyber Security Strategy focuses on cooperation and preparedness for cyber threats. Keeping different sectors of society safe and commercialising the best solutions requires investments in research and testing.

Text Ari Rytsy Photos iStockphoto

security

calls for cooperation VTT Impulse  41

”SALAUS JA INFORMAATION HAJASIJOITTAMINEN OVAT JÄRKEVIÄ TOIMENPITEITÄ”

C

yber security made headlines in Finland and around the world in 2013.

Just as the Snowden scandal was finally starting to die down, Finnish newspapers revealed a series of information security breaches that had affected more than one hundred Finnish websites.

According to the Finnish Communications Regulatory Authority, user names and passwords of hundreds of thousands of users had ended up in the wrong hands. The fact that this kind of news is becoming increasingly common is proof not just of increasing cyber crime but of of the growing amount of data on the internet. The concept of ‘information society’ has changed dramatically over the last decade. Information networks are now more or less ubiquitous.

With new innovations, ICT has also become more prominent in traditional industries.

Although it has given us greater precision and 42 VTT Impulse

efficiency, the use of information infrastructure is not without its problems, as industry uses machinery and components designed for consumer applications and business networks. The vulnerabilities of these systems also easily become problems for industry.

– Increasing information technology breeds higher information security risks. There’s a huge difference between someone hacking into a normal office computer and someone hacking into the information system of a nuclear power plant, says VTT’s Key Account Manager Jukka Rautava.

The situation in Finland should improve with the adoption of the Cyber Security Strategy, which was finalised at the beginning of the year and emphasises the opportunities of the cyber environment and cooperation between different sectors of society. The strategy approaches cyber security from a wide perspective, encompassing all of society. The Government Resolution paints

a picture of Finland as a global pioneer in cyber threat preparedness and management by 2016.

Data transmission under the microscope Networking in general presents a huge challenge in terms of information security. The total volume of data has grown dramatically, with networking and increased demand for cloud computing. The benefit of cloud computing lies in the high scalability of storage capacity, and the ease of transmitting and copying data between several computers or devices. Unfortunately, easy access to information is also where the risks associated with cloud computing lie. Data transmissions across national borders increase the likelihood of spying and manipulation.

– It is difficult for the owner of the data to keep track of where it is at any given moment.

The differences in legislation between countries is also an issue. In Sweden, for example, the Swedish Defence Radio Authority has the right to monitor data transmissions across national borders, subject to certain conditions, explains VTT’s Team Leader Matti Mantere.

Information management can be improved by imposing special conditions on data storage. For example, a business can ask the provider of a cloud computing service to store its data only on servers located in Finland. Another option is to invest in encryption, which restricts the unauthorised use of data. Various kinds of hybrid solutions, where some data is stored in the cloud and the remainder on local servers, are also worth considering. Encryption and data decentralisation are sensible options in indus-

tries where the volume of data is high and the information is particularly valuable from the perspective of business.

– There’s always a trade-off with information security – between cost and accessibility, for instance. This is another reason why it’s practically impossible to achieve 100% information security. Ultimately it comes down to minimising risks and preparing for their consequences, which is a never-ending process, says Mantere.

Improvements in industrial automation information security Finland has a long tradition of close and confidential cooperation between the private and public sectors, as well as among the various administrative sectors. Cyber security stems from comprehensive preparedness at all levels of society, which to succeed requires a high level of education, internationally competitive information security business and cutting-edge academic and scientific research. VTT plays an important role in the implementation of the Cyber Security Strategy.

The information security of Finland’s industrial automation systems is one of the priorities in cyber security research. VTT’s research partners in this sector include, among others, the National Emergency Supply Agency. The goal is to strengthen the level of information security within Finnish industry and to share best practices. The research focuses on traditional industries that have previously mostly operated in closed systems. These are particularly vulnerable to the dangers of networking and remote con-

VULNERABILITIES UNDER ATTACK

EXPLOITS are the most common form of

cyber attacks. Six out of the top ten malware detections during the first six months of 2013 were exploits.

Java was the most exploited programming language and accounted for 50 per cent of the top ten detections.

The percentage of Java attacks has increased by a third since the latter half of last year.

Attackers usually try to exploit vulnerabilities, i.e. coding errors in software installed on a computer, via malicious or hacked websites.

Source: F-Secure Threat Report H1 2013

VTT Impulse 43

trol, and the aim is to eliminate these dangers by means of tools such as information security assessments and network architecture analyses.

Cyber security research requires a horizontal approach, which means cooperation across VTT’s entire organisation. This creates a solid foundation for commercialising any new innovations.

– Information security know-how will become increasingly important, for example in the energy sector. We are also otherwise actively involved in promoting the industry through the Finnish Information Security Cluster, Rautava explains.

VTT is one of the founding members of the Finnish Information Security Cluster (FISC), which strives to promote Finnish information security know-how and to help make Finland a country known for its information security expertise. The cluster provides a platform for information security businesses to work together to improve access to labour and funding and to speed up internationalisation.

In the long term, the goal is to turn Finland into a global information security trend-

44 VTT Impulse

setter, attracting both investors and top-level professionals.

Cyberlab to become an important testing platform VTT has been investing in information security research for 10 years. Research is now entering a new era through the FISC. The cluster presently comprises around 50 businesses that specialise in different aspects of information security, such as privacy, user identification, data protection, cloud computing, encryption and firewall technology, and virus protection. Although many of them have been involved in exciting projects over the years, the scattered nature of the industry has hindered progress. This has now been rectified.

– There has long been a demand for this kind of cooperation. What finally gave us the push for setting up the cluster was the Government’s decision to invest in cyber security and draw up a national Cyber Security Strategy. Our resources are naturally limited, but we believe more funding will be available once the cluster becomes established, says VTT’s Principal Scientist Reijo Savola.

“THE CHALLENGE WITH INFORMATION SECURITY IS TO FIND A BALANCE BETWEEN PEOPLE, TECHNOLOGY AND BUSINESS.” Responsibility for the implementation of the Cyber Security Strategy has been assigned to Cyberlab Oy, quickly becoming the FISC’s spearhead project. As the name suggests, Cyberlab consists of two cyber security laboratories that will open in Espoo and Oulu by the beginning of 2014. Operating in VTT’s facilities, the laboratories will focus on providing FISC members and other businesses with industry updates and information security services. In addition to keeping businesses up to date with developments in the industry, the laboratories will test the information security properties of products and services used or developed by businesses in a highly controlled environment.

– Businesses will then be able to use the test results, for example in their own product development. Cyberlab will also provide a testing platform for prototypes developed in VTT’s own research and product development projects, Savola says.

Physically, Cyberlab will consist of public showrooms and private war rooms where the actual testing of different kinds of attack and defence scenarios will be carried out. Access to the war rooms will be strictly controlled. This will help to prevent unauthorised access to critical security data and software.

Experience from online banking and central government VTT Technical Research Centre of Finland is an important partner for many businesses in the field of cyber security, and the organisation’s 80 research scientists represent the largest independent information security research team in Finland. Links to international information security organisations and research institutes, as well as to other cyber security laboratories around the world, give VTT the ability to produce reliable information about the industry and to help promote Finnish export trade.

Although small, the domestic market has already yielded important high profile references for VTT, and will continue to provide an

important testing platform in the future. Examples of VTT’s references include online banking identification systems and central government electronic services, which have highlighted Finland’s strengths in the infrastructure know-how required in online identification and the managing of electronic identities. Finland also has cutting-edge expertise in other areas of information security.

Producing technological solutions is nevertheless only one element in a complex whole.

The solutions also need to be integrated into the operating environment of businesses.

– The challenge with information security is to find a balance between people, technology and business. The first step is to get engineers and businessmen to talk to each other in a language they both understand. An adequate level of information security should be the goal for both, Savola explains.

He believes the most common mistake is to approach information security purely on the basis of standards. This easily leads to an operating environment that fails to take account of elements vital for the system. Risk analyses need to dig deep to provide businesses with the correct information on which threats they cannot afford to ignore. This knowledge is also vital for making the most out of standards.

It is important to recognise the real extent of the menace cyber crime presents to business.

The Conficker worm, for example, first detected in 2008, is estimated to have caused billions of euros worth of damage worldwide.

– We’re no longer just talking about damage to business, either. The motives behind cyber attacks can also be purely political. The “script kiddies” of years gone by, who used to hack into computers simply to cause a nuisance, have been replaced by governmental and business-based operators, and hacker collectives such as Anonymous. Through them, cyber attacks have grown increasingly organised. This is why we need preparedness at all levels of society, Savola says. n VTT Impulse 45

TECHNOLOGY

KEY TERMS Media, magazines, printed media, publisher, reader engagement, The Future Magazine project, digitisation KEY PERSONS Anu Seisto KEY MESSAGE The magazine business focuses increasingly on services that benefit both the reader and the magazine.

VTT CONTACT anu.seisto@vtt.fi MORE INFORMATION www.vtt.fi

THE FUTURE MAGAZINE In the Future Magazine project (Fumaga), VTT searched for new service models by means of four case studies: hybrid media applications in magazines, new title launch, brand experience and service concepts for customers’ processes.

46 VTT Impulse

a magazine While the readership and circulation of printed magazines may never return to their former glory, the situation is not entirely hopeless.

Text Minna Huuhka Photos Sami Tirkkonen

P

icture this: You come home after a hard day at work and find your favourite magazine on the doorstep, brimming with useful information, clever tips and the best recipes. You read the magazine and then, brimming with joy and satisfaction, you dash off a postcard to the editorial staff: “Thank you so much for the story on page 10!” A few days later, the postcard delivered to the magazine’s editorial staff is archived in a box containing feedback from readers.

This example illustrates the interaction between readers and magazines just ten years ago. This relationship changed completely when we entered the era of digital information and the Internet.

– The magazine business is already increasingly focused on services, and this trend will continue in the future. These services will benefit both the reader and the magazine, says Anu Seisto, Principal Scientist leading The Future Magazine project conducted at VTT.

Seisto believes that the fate of the magazine depends on its ability to engage in genuine interaction with readers. Building brand commitment and brand loyalty is not an impossible mission in the fragmented media industry, as long as you do the right things. Loyal readers need to feel that they matter; that their opinion counts.

Seisto mentions the young women’s monthly Olivia as an example of a magazine that has grasped this message. Olivia has an online forum where readers can interact with each other and with the editorial staff. In addition to world fashion, Olivia wants to showcase the readers’ own fashion styles and wardrobe contents, and gives the readers a free hand once a year to design and produce an entire issue.

New tricks Magazine publishers are constantly trying to outsmart each other in responding to readers’ needs and creating new services.

VTT Impulse 47

TECHNOLOGY

More than

FOREST INDUSTRY, TIME TO WAKE UP! THE MAGAZINE BUSINESS poses challenges for publishers and a range of other players in the value chain, such as printing houses, distributors and paper manufacturers.

– If printed magazines only attract a handful of loyal readers, the number of copies printed will be significantly reduced, which will affect our paper mills. It would be a shame if magazine paper production was transferred to low-cost countries. After all, the best know-how is available right here in Finland, says Anu Seisto, Principal Scientist leading The Future Magazine project at VTT. The waning popularity of printed media is putting pressure on the forest industry to change.

– Making paper and delivering it to printing houses used to be enough, but not any more; now you need to be a part of the magazine’s service network, and develop new applications to help the customer, and the customer’s own customers. To do this, you need in-depth understanding of the entire business.

Seisto thinks it would be a great idea if someone from a paper mill’s marketing team would meet the people in charge of the visual appearance of a new magazine.

What could they offer each other? Could paper be part of the magazine’s brand? How would that fit in with the magazine’s service package? Positive visibility all the way to the reader could serve as an image booster to the forest industry.

Seisto offers the paper industry a word of encouragement: – Not everything has been invented yet, and the game is far from over. But to guarantee future success, paper companies need to learn more about the service business, and develop new solutions. They should also learn more about the other players in the value chain, such as publishers and readers, and work together with them.

48 VTT Impulse

At the same time, however, they report declining sales and profitability figures, and job cuts are announced practically on a weekly basis.

– The world is such a hectic place today. In the old days, a bulk product never failed to sell, and money was simply pouring in. Today, income streams are much smaller, and finding the most lucrative stream requires a great deal of patience. But will publishers give these small streams enough time to grow into rivers?

The big question, Seisto says, is how to make it easy and effortless for readers to navigate between content offered in hard copy and in digital format. Which methods work best depends on the magazine.

– New products or services created under a magazine brand, or improvements in existing products, don’t need to be permanent, nor can they be. The world keeps changing, and product development keeps on moving forwards, says Seisto.

New product design involves challenges, as dividing readers into different target groups is no longer such a straightforward business. Individual readers’ preferences might be anything from pure headline-hopping for a constant stream of news,to well-written articles on topics of particular personal interest. How could one magazine or newspaper serve such readership and remain profitable?

– Automatic text production will be a big thing when text needs to be produced quickly.

Here, publishers will compete with service providers like Google and Facebook and against each other for high-quality journalistic content, Seisto predicts.

But, as she points out, solutions and styles used in printed media will not necessarily work online. A new approach with new solutions is needed. A Finnish newspaper receiving Seisto’s seal of approval is the Hufvudstadsbladet HBL+, which is fully designed for the tablet environment. Instead of trying to re-create the printed newspaper, HBL focused on highlighting the visual aspects and viewing experience.

– Technology is a tool that allows you to do pretty much anything. All you need is to find out what your target group wants and what is truly useful to them. Some readers might appreciate a chance to try on new clothes in an interactive virtual fitting room. An interior design magazine could offer its readers the services of an interior designer online.

“AUTOMATIC TEXT PRODUCTION WILL BE A BIG THING WHEN TEXT NEEDS TO BE PRODUCED QUICKLY.”

Printed magazine the source of income The success story of Finnish magazines came to an end in 2009. Even though Finns still love to read, substantial readership, circulation and subscriber figures are a thing of the past.

– Unlike in many other countries, magazine subscription is really popular in Finland. This gives the publishers an advantage, and helps them bond with the readers. In countries where magazines are sold mainly as single copies, the change has been even more dramatic.

The current system, where online content and services is additional and complementary to the printed magazine, will soon cease to exist; in future, digital and printed content will be one and the same. Focus, to a growing extent, will be on strong brand-building and commercialisation in various channels.

For the time being, the printed magazines continue to bring in most of the income.

– Monetising digital content, no matter how good it is, remains difficult as long as people think anything they find on the Internet should be free.

Seisto believes this will gradually change, and that digital media will evolve into a prof-

itable business. Sooner or later, digital products and services will take over the role of principal income generator.

– So many technological changes are under way at the moment that it’s impossible to say which one is the most revolutionising – only time will tell. Some of the existing ones will die and others will replace them.

Finland has nothing to be ashamed of in terms of technological develpment On the contrary, we lead the way in several fields. The Verkko Plus online newspaper, for example, offered by Helsingin Sanomat, has been cited globally as a successful way of monetising digital content.

Even though digitalisation is the future, attention should also be paid to retaining the attraction of the printed magazine. There are, and always will be, people who want to relax and flip the pages of their magazine, entirely offline.

Whether talking about today or tomorrow, each media channel has its own role in the daily lives of consumers. The question is simply one of understanding what that role is, and who it is for. n VTT Impulse 49

TECHNOLOGY

KEY TERMS Young Researcher of the Year award KEY PERSONS Marja Matinmikko, radio frequencies, radio technology, Licensed Shared Access/Authorised Shared Access (LSA/ASA) concept KEY MESSAGE The work of Marja Matinmikko, winner of the Young Researcher of the Year award, focuses on ensuring the availability of radio frequencies.

VTT CONTACT marja.matinmikko@vtt.fi MORE INFORMATION www.vtt.fi

50 VTT Impulse

Smooth cooperation bears fruit. One example is Marja Matinmikko’s appointment as the chair of the sub-working group on Cognitive Radio Systems at the United Nations International Telecommunication Union (ITU).

Sight set on

spectrum sharing

Marja Matinmikko’s aim is to ensure that using mobile telephones to surf the internet will be as smooth as possible in the future.

Text Tiina Saario-Kuikko Photos Vesa Tyni

V

TT Senior Scientist DSc Marja Matin­ mikko, 34, is a highly esteemed professional, not just in Finland but internationally. Known for her expertise in cognitive radio technology, Matinmikko was also appointed as the chair of the sub-working group on Cognitive Radio Systems at the United Nations International Telecommunication Union (ITU) last year.

She most recently received recognition in Finland from the Finnish Foundation for Technology Promotion, which chose her as the winner of the 2013 Young Researcher of the Year award. Matinmikko is characterised by her strong commitment to scientific work and close cooperation with businesses and regulatory organisations.

– Winning the Young Researcher of the Year award is a great honour, and I am extremely delighted and touched. It’s a wonderful way to be recognised professionally, Matinmikko says.

Towards spectrum sharing At VTT, Matinmikko focuses on cognitive radio system (CRS) technology and its use in mobile communication systems. As the amount of data transmitted by means of mobile telephones VTT Impulse 51

TECHNOLOGY

YOUNG RESEARCHER OF THE YEAR 2013:

continues to grow, demand for spectrum also increases. At the current level of growth, networks will become congested within a few years.

Matinmikko’s work revolves around ensuring the availability of radio frequencies.

– The challenge lies in figuring out how operators can respond to the growing volume of data in a cost-effective manner. Gaining access to new frequency bands is slow.

“FINLAND IS A LONG-ESTABLISHED PIONEER IN MOBILE COMMUNICATIONS RESEARCH.” – It’s possible that in future we’ll be relying on what is known as spectrum sharing, which involves giving operators access to frequency bands when they are not needed by the incum52 VTT Impulse

bent spectrum users, Matinmikko explains.

She believes one solution for this lies in the Licensed Shared Access (LSA)/Authorised Shared Access (ASA) concept.

– We demonstrated the world’s first trial of the LSA/ASA concept for spectrum sharing in April, in which a live LTE network borrowed capacity from another radio frequency without interfering with its original use, Matinmikko says.

She explains that the LSA/ASA concept is all about licensed spectrum sharing. It involves giving mobile network operators access to an incumbent user’s spectrum, subject to agreed terms and conditions, which ensures that both parties can operate without interruptions.

Regulation and standardisation relating to spectrum sharing are currently being developed in Europe, and the trial demonstrated in Finland has attracted worldwide attention. Matinmikko’s work currently focuses on developing and promoting the LSA/ASA concept among regulatory bodies and standardisation organisations, as well as on investigating its business potential.

– Finland is a long-established pioneer in mobile communications research. We have a unique mobile technology cluster, and cooper-

ation between the scientific community, businesses and regulators works well. My role is to act as a mediator between the different parties and to conduct research that takes all their views into account and can be applied to real wireless telecommunications systems, Matinmikko explains.

She believes that close cooperation is the key to success, and the recipe for important new innovations.

– Our resources are limited, which is why we need to focus on things that will genuinely boost Finland’s competitiveness, she says.

Long career at VTT Marja Matinmikko also discussed the current situation of spectrum availability and the possibilities of spectrum sharing in her doctoral dissertation in telecommunications, which was examined last year. She proposed a novel bandspecific approach, where the selection of the method for obtaining knowledge of spectrum

MARJA MATINMIKKO MARJA MATINMIKKO has an MSc degree

in Industrial Engineering and Management (2001) and a DSc degree in Tele­ communications (2012). She is currently working on a doctoral dissertation in Industrial Engineering and Management.

Matinmikko joined VTT in 2001 as a Research Trainee and subsequently worked as a Research Scientist from 2002 until 2010. She has now been a Senior Scientist for almost three years.

During her time at university, she worked as an Industrial Engineering Assistant at the University of Oulu, and had a summer job with Nokia Solutions and Networks in Oulu in 1999 and 2000.

Marja Matinmikko was born in Rovaniemi, moving to Oulu in 1997 to attend university.She has remained in Oulu ever since. She is married and has a seven-year-old daughter. Her husband is an entrepreneur in a VTT spin-off.

Her favourite hobbies are sewing and fitness classes. Matinmikko attends a sewing club one evening a week, where she makes dresses for herself and her daughter.

availability is determined separately for each frequency band, based on the deployment characteristics and regulatory requirements of the specific band.

Matinmikko also hopes to use her determination and productivity to write a second doctoral dissertation, this time in Industrial Engineering and Management, on the business potential of spectrum sharing.

Matinmikko joined VTT 13 years ago, when she became interested in the opportunities they were offering in the field of research at a university career day. She was initially hired as a Research Trainee, subsequently becoming a Research Scientist and ultimately a Senior Scientist. Her research activity is evidenced, for example, by the more than 40 scientific publications and almost 100 proposals to regulation forums that she has written during her career.

Matinmikko currently acts as project manager for telecommunications research and coordinates the extensive Finnish CORE+ project consortium, which is charged with developing the LSA/ASA concept and demonstrating its viability in live mobile communication networks. Of her most memorable projects, she mentions an EU project called WINNER. – WINNER was about producing spectrum requirement calculations in close cooperation with German and Japanese partners. Our calculations formed the basis of the decisions made in 2007, which allocated more spectra for mobile communication systems. I was the only woman in the team, and only 25 years old. The set-up was almost comical: a young Finnish woman telling Japanese doctors what to do. Our cooperation nevertheless worked extremely smoothly, and we produced some important results, says Matinmikko, reminiscing.

The same project team also subsequently published a book together, and the contacts made during that time are still important to Matinmikko.

She says she often gets her best ideas in the midst of regular day-to-day chores. Matinmikko was born in Rovaniemi but now lives in Oulu.

She gets her strength from her day-to-day life, family, friends and hobbies.

– Work-related travel has also motivated me a lot, seeing where the world is going and what part my own work plays in it. The best way to relax after travel and to take my mind off work is to stay with my family up in Rovaniemi, and at my summer house in Kajaani, Marja Matinmikko says. n VTT Impulse 53

TECHNOLOGY

KEY TERMS Space science, European Space Agency, ESA, satellites, Planck, MilliLab KEY PERSONS Juha Palve, Mikko Nikulainen KEY MESSAGE TT participates actively in the development of space technology.

VTT CONTACT juha.palve@vtt.fi MORE INFORMATION www.vtt.fi

Your smartphone might not be all that smart without space science.

And what exactly do satellites do in health care?

Smart technology

from space

Text Kati Johansson Photo ESA

N

ot just any kind of technology can be sent into space. Devices in orbit are exposed to radiation and need to withstand the pressure of vacuum conditions and extreme temperatures. Mistakes can be costly.

Space technology needs to be exceptionally accurate, light and energy-efficient. The high specifications of space technology also drive technological development here on Earth. Know-how developed for space conditions often finds its way into consumer products, such as smartphones.

Smart technology is an example of technology with both direct and indirect links to space sci54  VTT Impulse

ence. The GPS applications found in smartphones are based on satellites, but mobile telephones operating at multiple frequencies also have sensors initially developed for space science.

Strengthening the scientific backbone VTT has been working with the European Space Agency (ESA) for decades.

VTT studies space science in the context of various technological focus areas, including applied material technologies, information and communication technologies, microtechnologies and electronics. There are between 30 and 40 employees working on space projects at VTT.

Participation in space projects gives research and development organisations a stronger scientific backbone as their know-how increases.

Developing highly demanding technology also helps to fine-tune internal processes and operating models.

In addition to research institutes, a number of Finnish businesses also contribute to ESA projects and gain technological competitiveness and international business expertise from supplying spacecraft and software. Competition for a place in an ESA project is fierce.

– VTT has been involved in ESA projects for a long time, and we’ve grown familiar with the agency’s operating model. Finnish businesses wanting to take part in space projects can also benefit from our expertise, says VTT’s Vice President, Electronics Juha Palve.

VTT’s partners in the field of space science include Aalto University and various Finnish businesses. MilliLab, Millimetre Wave Laboratory of Finland, founded in 1995, is one example of VTT’s collaboration with Aalto University.

MilliLab is also an ESA External Laboratory.

Among innovations created at MilliLab is the ultra-sensitive radio receiver VTT developed for the ESA’s Planck satellite, which last autumn provided scientists with the first insight into the beginnings of our universe. The radio receiver exceeded all expectations.

The highly specialised development work required for the radio receiver also gave VTT know-how that can now be used in other applications.

Better health from afar Health care is an increasingly important new sector to benefit from space technology. The entire sector of eHealth was born out of technology developed for monitoring the health of astronauts. Now the satellites are used to monitor health in developing countries, for example.

TECHNOLOGY

– In the future, it will be possible to carry out a range of surgical procedures remotely via a satellite link. The skills of top surgeons can therefore be put to use more extensively, regardless of location, Palve explains.

The technology will also speed up diagnostics. This will be especially beneficial in remote areas, as it will no longer be necessary to transport patients long distances to visit a specialist.

Several eHealth projects are in progress around Europe that focus on establishing partnerships with African organisations. Satellites could soon make it possible for top cardiologists in London to treat patients in the Kenyan savannah. n

HIGHEST QUALITY IN EUROPE THE QUALITY of the core technologies used

in European space probes and satellites rests on the shoulders of a Finnish man, Mikko Nikulainen.

He is the head of Space Materials and Components Technology Division of the European Space Research and Technology Centre (ESTEC), the ESA’s technology centre in the Netherlands. ESTEC develops space technology in collaboration with numerous partners based around Europe.

– Developing space technology requires extremely strong technological know-how.

As partners we only accept organisations that are able to produce technology of the highest quality in Europe, says Nikulainen.

Space applications need to be able to withstand the challenging conditions of space for as long as 15 years. With the exception of software updates, no servicing can be carried out during that time. All technology sent into space undergoes vigorous testing to ensure reliability.

Although space is an extremely narrow market area, the life cycles of products are usually very long. This is why it is important that technology suppliers are able to commit themselves to long-term cooperation.

VTT is a familiar research and technology partner for Nikulainen.

– VTT and its international networks have played key roles in developing microelectromechanical systems, or MEMS, technology.

We also have high hopes for this partnership in the future.

VTT Impulse 55

TECHNOLOGY

KEY TERMS KMining industry, metals, natural resources, mining technology KEY PERSONS Erkki Ahola, Ingmar Haga, Pekka Suomela, Hannu Raitio, Helena Wessman KEY MESSAGE Mining technology processes still need further development.

VTT CONTACT helena.wessman@vtt.fi MORE INFORMATION www.vtt.fi

Sandvik’s product development pays special attention to environment and safety.

56 VTT Impulse

Text Antti J. Lagus Photos Sandvik Mining and Construction

Mining industry prepares for a new boom

VTT Impulse  57

TECHNOLOGY

The mining industry has a bright future despite the current lull in global demand for metals, experts believe.

“TECHNOLOGICAL DEVELOPMENT IS EVIDENT IN EVERY ASPECT OF MINING.”

T

he new mining industry boom is coming, we are just not sure when. Demand in China, for example, is still high. These are the views of Product Development Director Erkki Ahola from the mining machinery manufacturer Sandvik Mining and Construction and Vice President of Europe Ingmar Haga from the Kittilä-based gold mine operator Agnico Eagle Mines.

The mining cluster is an important employer in Finland with 30,000 employees, and the number of jobs is expected to grow in the future. There are 12 metal mines in Finland, and around 30 industrial mineral mines. The cluster also includes machinery manufacturers and consultancy firms.

The seven-year super-cycle Executive Director of the Finnish Association of Extractive Resources Industry Pekka Suomela reminds us that the huge investments made by mining companies during the previous economic boom are now damaging their economic viability. However, referring to the ”seven year super-cycle”, as the upswing is dubbed, he does not believe that its biblical seven years of feast will be followed by seven years of famine.

Mining projects by nature are long-term. The permit application stage that follows preliminary exploration can take as much as 10 years. Suomela would like to see the authorities improve their processes in this respect.

It is only after all necessary permits have been secured that a mining company can begin building the mine and infrastructure, which can be extremely expensive in the case of mines located in remote areas.

The leading educational institution providing mining industry education in Finland is the University of Oulu, which is located closer to most mines than universities in Southern Finland. The Aalto University School of Chemical Technology and School of Engineering also carry out valuable research work, and Suomela is especially pleased to see universities working together.

Technology paves the way for a safer future Technological development is evident in every aspect of mining. Safety has improved thanks to mobile GPS applications and better communications technology, for example. Ingmar Haga explains how miners working 350 metres below ground in the Kittilä mine can make telephone calls to anywhere in the world.

58 VTT Impulse

The mining industry is also working to improve its own processes with the aim of achieving better energy efficiency, as well as wastewater management and sustainable development. VTT Technical Research Centre of Finland and the Finnish Association of Extractive Resources Industry recently launched a joint project aimed at promoting sustainable, accessible mining (SAM). The SAM project is part of the Green Mining research programme of TEKES, the Finnish Funding Agency for Technology and Innovation. VTT has also collaborated with Sandvik Mining and Construction in projects aimed at improving various automation processes, for example.

The three-year SAM programme, launched at the beginning of the year, focuses on finding tools for measuring environmental impacts and for promoting public discourse and communication. VTT’s Senior Scientist Helena Wessman believes this work will promote sustainable technological development, in turn boosting the competitiveness of the Finnish mining industry and improving conditions for export trade.

– The forest industry underwent a similar process around 30 years ago, when the industry agreed on common rules for forestry. Water quality in the lakes and rivers that had become polluted has now been restored, Wessman says.

Ahola from Sandvik Mining and Construction believes that the environment and safety are the two key factors that steer product development the most.

– Finland has all the tools needed to overtake even Australia in the global mining market, he says.

Towards more environmentally friendly processes Ingmar Haga from Agnico Eagle Mines believes continuous efforts are also needed to make machinery, equipment and processes more cost-effective and environmentally friendly, without compromising safety. Mineral extraction, for example, has become an increasingly automated process, and many aspects of a mining operation can be run from control centres located on the surface or underground.

– With mines extending deeper and deeper into the earth’s crust it will be possible to crush and leach ore underground, providing the rock is suitable.

There will be no need to hoist ore up to the surface for processing, Haga explains.

Ahola, from Sandvik Mining and Construction, believes it will be in Finland’s interests to start using technology developed elsewhere instead of trying to do everything from scratch. He thinks it a good thing that organisations involved in the Finnish mining cluster complement each other rather than compete.

– VTT could be the force that brings these organisations closer together and coordinates projects between them, Ahola says. n

NATURAL RESOURCES INSTITUTE FINLAND TO OPEN IN 2015 MTT AGRIFOOD RESEARCH FINLAND, the Finnish Forest

Research Institute, the Finnish Game and Fisheries Research Institute and the statistical services of the Finnish Ministry of Agriculture and Forestry are to be merged under a new entity called Natural Resources Institute Finland from the beginning of January 2015.

Apart from societal and economic reasons, this is driven by aspirations to improve operations by merging research institutes operating in approximately 40 different locations around Finland. The new unit will have more than 1,500 employees, which will make it the country’s second largest sectoral research institute after VTT Technical Research Centre of Finland. Natural Resources Institute Finland will be headquartered at Viikki, Helsinki.

– The reform of sectoral research institutes has been long in the making. We were already actively involved in the creation of the natural resources and environmental research consortium LYNET in 2009, explains the Director General of the Finnish Forest Research Institute Hannu Raitio.

According to Raitio, LYNET has created the foundation for a new operating model and closer cooperation in the field of research, even though the participating Finnish Environment Institute and five

research institutes of the Finnish Ministry of Agriculture and Forestry are currently independent units.

The Geological Survey of Finland and VTT Technical Research Centre of Finland are also planning to join LYNET. – We should begin to see renewable natural resources more and more as one entity, because the problems are multifaceted and the solutions therefore need to be cross-scientific, Raitio says.

Raitio believes the sustainable use and management of renewable natural resources will also help businesses to grow. Creating a stronger knowledge base also requires cooperation between universities and businesses.

Raitio mentions the many products and benefits that can be derived from forests as one example of possible areas of cooperation. There is even scientific evidence to suggest that spending time in the woods improves health and general well-being in various ways.

Raitio also believes that the relationship between the mining industry and the environment warrants further research. Mining has an impact on nearby waters and forests.

VTT Impulse 59

TECHNOLOGY

KEY TERMS Silicon Valley, University of California, R&D, product development, innovations KEY PERSONS Harri Kopola KEY MESSAGE From California, Harri Kopola brought back a new approach, or a new way of thinking, which focuses on the ability to provide a solution for the customer that combines first-class competence and other problemsolving skills.

VTT CONTACT harri.kopola@vtt.fi MORE INFORMATION AVAILABLE AT www.vtt.fi

Lessons learned

in America UNIVERSITY OF CALIFORNIA • Founded in 1868 in Berkeley • 10 campuses, more than 234,000 students.

• Winner of 61 Nobel Prizes, 22 of which were awarded to Berkeley campus staff.

• The Berkeley flagship campus focuses on health, energy and environmental research.

• Berkeley came third in the Shanghai ranking of world universities and fifth in the Times Higher Education • ranking in 2013.

60 VTT Impulse

Text Irma Lind Photo iStockphoto

Harri Kopola is a man with a proven track record as a high achiever.

He contributed significantly to the creation of printed electronics competence in Oulu, Finland, and helped build cooperation between research and application development in this sector. For the past year he has been studying the weak signals of research and product development in Japan and USA.

Nothing but the best Our work to build a reputation must be systematic and determined, and backed up by support measures such as high-quality scholarly publication. This could be integrated with project deliverables reporting, for instance in major EU research projects.

Other key priorities include invention processes and intellectual property rights. Prototypes must be built for live demonstration of the opportunities offered by new technologies.

Kopola stresses market relevance: research and its results must be of interest to the industry. Research is funded partly out of tax funds, so it must be shown to benefit Finnish business and industry. To this end, research should be of a high international standard.

“We need to produce our own, original results and have the courage to test them with partner companies. Only diamonds sell,” Harri Kopola notes.

Focus on usability “We need to engage Business Development specialists more closely in research and development project planning. We need to be more efficient in collecting information from the customers and in getting the customer’s message across in the research process,” Kopola says.

The journey to become ’One VTT’ has progressed well, in Kopola’s opinion, with people engaged in genuine cooperation.

TECHNOLOGY

T

here’s a big difference in how things are done in Finland and in Silicon Valley. In Finland, we like to develop ideas behind closed doors, whereas our colleagues in Silicon Valley are quick to start looking for markets and customers, Harri Kopola explains.

It’s no coincidence, he says, that Silicon Valley is a hotbed of achievement.

“The quality of research is extremely high, and development work is entrepreneurship- and market-oriented. Scholars publish their work in eminent forums, while research organisations and universities and the corporate sector are very active in organising various networking events. This creates a virtuous cycle: a favourable environment attracts the world’s leading professors and is a natural breeding ground for innovations.”

The reputation is built on proven achievements.

In the USA, even the president uses his influence to encourage innovation. In his speech this spring, President Barack Obama emphasised the importance of manufacturing, declaring it his goal to bring manufacturing industry back to the USA. One of the global high-tech manufacturing hubs President Obama mentioned in his speech is now being built in the San Francisco Bay Area.

”ONLY DIAMONDS SELL.” What customers need for financiers and for their own customers is a good story with a strong foundation. Our offering must reflect this story and address the customer need and the problem which will be successfully resolved at the end of the story.

From California, Harri Kopola brought back a new approach, or a new way of thinking. This focuses on the ability to provide a solution for the customer that combines first-class competence and problem-solving skills. Rather than just selling cutting-edge technologies, required by innovative solutions in any case, the creation of such new solutions for customers becomes the foremost objective.

Although highly rewarding, working in a global environment has its drawbacks. Being in different time zones is alone a challenge. Efficient time management is vital. This means meetings kept short and materials delivered to customers without delay.

And, if you want to succeed, forget modesty. Those who deserve credit should get it.

A good story, foresight, our own ’diamonds’, corporate partnership, business development and efficiency – those are the keys to success according to Harri Kopola. n

HARRI KOPOLA • Professor, VP, Strategic Research, microtechnologies and electronics • Research portfolio includes photonics, printed intelligence, diagnostic platforms, and micro and nano systems • Visiting Professor University of Tokyo 1 September–31 December 2012, University of California Berkeley, 1 January–31 August 2013

VTT Impulse 61

BUSINESS Optimizing anaerobic waste digestion

Commercial application for security screening VTT SPINN-OFF Asqella is in the process of commercialising its revolutionary

passive THz imaging technology, capable of remote detection of concealed items. The company has received nearly one million euros in funding from business angels, VTT Ventures and Tekes – the Finnish Funding Agency for Technology and Innovation.

The technology will be available on the markets in 2014. Asqella sees major demand for the new system in loss prevention and security screening in public places.

The new camera technology offers a safe capability for detecting concealed items at a distance of 5 to 15 metres. There is no need to stop for a screening, and the passive system involves no radiation, making the method safe while enhancing passenger privacy. The capacity to screen at a distance has been of considerable interest for several years, but technical challenges have limited the effectiveness of existing techniques.

Controlling the digestion process is one of the most important ways of making the biogas production process more efficient.

VTT coordinates a new European project which focuses on studying anaerobic digestion (AD) of organic waste and improving the control methods. The AD process can be optimised to produce either biogas or volatile fatty acids, which are more valuable products than biogas.

30 million

containers were handled at the world’s 2nd largest container hub in Singapore in 2012.

An advanced wireless network for Singapore

62 VTT Impulse

VTT has been selected to test and develop an advanced wireless network for PSA, the company responsible for port operations in Singapore. The objective is to improve the flow and efficiency of port operations. Singapore is one of the world’s largest container ports.

Photo: Vesa Tyni

BUSINESS

Saving energy at work and at home ANNE JAAKKOLA is Concept Manager for Kesko’s

K-Citymarket supermarkets and Anttila department stores. She had been exploring various ways of reducing store energy consumption for some time before the opening, in Raisio in spring 2013, of the first Anttila outlet built using the passive house concept.

The Kodin Ykkönen outlet in Raisio consumes far less electricity than a traditional sales outlet, with savings equal to the annual consumption of more than 40 single-family houses.

For Jaakkola, energy-saving extends outside the workplace: “I’ve been living in a passive house for almost two years now.”

Jaakkola enjoys the steady, comfortable temperature of a passive house, as well as the silence.

“Structural strength and thick insulation serve as efficient soundproofing,” she says.

More information on the first commercial passive building in the Nordic countries is available on page 80.

ANNE JAAKKOLA Anne Jaakkola is Concept Manager for Kesko’s K-Citymarket supermarkets and Anttila department stores. Working in Helsinki, she is responsible for store concepts and product display.

VTT Impulse 63

64  VTT Impulse

NEW MATERIALS grow on trees

Wood is an extremely versatile material. Forest industry giant UPM uses wood to make materials such as recyclable biocomposite, biofuel and concrete stabilizing agent.

Text Anne Hänninen Photos UPM and iStockphoto

F

innish forest industry has been struggling in recent years, with paper overcapacity in Europe and the construction of new capacity in low-cost countries forcing the industry to rethink its competitive

strategies.

To address these challenges, UPM has adopted a new approach, seeking new perspectives on both forests and its existing business.

– We’re exploring new business opportunities that would allow us to benefit from our strong biomass competence. And while we create innovative value-added products from wood, we also help to save the world!, enthuses Pekka ­Hurskainen, UPM’s Vice President, Strategy Development, Technology.

VTT Impulse 65

FIBRILS AND EMISSIONS UPM IS one of VTT’s key customers. Close to a dec-

“ADDING WOOD FIBRE TO PLASTIC USED TO TURN THE PLASTIC BLOTCHY.”

66 VTT Impulse

ade of cooperation with UPM currently focuses on biofibril development and biofuel testing in vehicles.

UPM has been working with VTT and Aalto University in biofibril development since 2008, which is when the Finnish Centre of Nanocellulosic Technologies was established. The Centre has developed various methods of manufacturing nanocellulose and uses for cellulose-based polymers in different applications, such as fibre products, films, coatings, foods, cosmetics, pharmaceuticals and electronics.

The most recent cooperation project is the UPM BioVerno field test, which involves studying the suitability of biofuels for vehicles. To obtain comparison data, two vehicles use UPM BioVerno and two use a regular fuel. Testing will later be extended to buses.

Both Professor Nils-Olof Nylund, who is responsible for UPM BioVerno testing, and Pia Qvintus, Technology Manager for the biofibril development work, feel strongly about developing new materials from non-food sources.

– Research into wood-based raw materials is important for countries in the north. Traditionally, biofuels have been made from food crops, Nylund notes.

– The amount of wood biomass remaining in forests annually will continue to grow while the paper industry in Finland downsizes. We need to find new uses for this biomass, Qvintus conludes.

Making the most of materials The basic idea is simply to make more from wood; to use all parts creatively to add more value.

While fibres continue to serve as a raw material for pulp, they can also be processed into biocomposites and biofibrils. Lignin, cellulose, hemicellulose and extracts are used to make biochemicals, while harvesting residue such as bark and branches provides material for biofuels or bioenergy.

This drive for material efficiency creates new business with significant growth opportunities.

Forest industry residues into biofuel UPM has four main projects in the pipeline for producing new materials from wood. The most advanced of these is the UPM BioVerno renewable diesel, which will reduce the greenhouse gas emissions of vehicle traffic by as much as 80 per cent compared to fossil fuels.

– Our President and CEO Jussi Pesonen calls UPM BioVerno our spearhead project. We have built an extensive patent portfolio around this proprietary innovation, Hurskainen explains.

UPM BioVerno is making progress on two fronts: firstly, a new biorefinery, involving an investment of EUR 150 million, is currently being constructed in the UPM Kaukas mill area in Lappeenranta, with completion scheduled for next year.

When ready, the facility will produce approximately 100,000 tons of renewable diesel fuel for vehicles. Secondly, fleet tests with the UPM BioVerno renewable diesel are under way. The tests involve VTT’s test drivers driving approximately

20,000 kilometres in the Helsinki metropolitan area. The UPM BioVerno-fuelled Volkswagens are being used to collect data for fuel analysis.

– We want to prove that engines run safely on our renewable diesel in ordinary traffic conditions. We also collect vehicle emission data.

From shoe horns to kitchen furniture The manufacture of UPM Formi – a cellulose fibre reinforced plastic composite – was launched in Lahti in 2012. Presenting a bag full of small, light-coloured granules, Hurskainen explains: – UPM Formi is delivered to customers in granulates specially designed for injection moulding applications.

Cellulose fibres significantly increase the rigidity and strength of polypropylene. UPM ForMi granulates are clean and odourless, and also food safety approved. The material offers almost unlimited dyeing and painting possibilities.

Next, proudly presenting the wide range of potential UPM Formi applications, Hurskainen shows us a bright pink shoe horn and ivory-coloured chopsticks. The shoe horn is 40 per cent fibre and 60 per cent plastic. The composition can be altered as required.

Previously, when wood fibre was added to a plastic composite, it turned the plastic brown and blotchy. UPM Formi feels silky to the touch, and looks like ordinary plastic.

– Besides industrial products, UPM Formi is equally suitable for consumer product applications, which provides us with interesting new and so far unexplored opportunities.

The first UPM and VTT test vehicles using UPM BioVerno for fuel were launched in May 2013.

The vehicle used for the test drives is the Volkswagen Golf 1.6.TDI DSG automatic.

VTT Impulse 67

Cellulose, hemicellulose, lignin and extracts can be processed into chemicals that replace oilbased products, or entirely new and improved chemicals.

– Here, too, we have to assess the relevance of this production to our value chain. In the end, it all boils down to one question: Who is going to turn this into a business?

“BIOFIBRILS CAN BE USED IN CONCRETE APPLICATIONS.” Existing UPM Formi applications include Isku office chairs, Puustelli kitchen furniture and Genelec loud speakers, the last of these also proving the material’s excellent acoustic properties.

Whose business is it?

UPM’s novel biomaterial, UPM Biofibrils, has now reached a pre-commercial phase.Thanks to their strong interaction with water, these microand nanofibrils can form highly viscous solutions.

Biofibrils can be used as a biobased stabilising agent in concrete; the concrete becomes more homogeneous, with improved structure and workability.

Biofibrils can also be used to improve the quality and performance of products such as paints and coatings, and as reinforcement in paper and packaging products and composites.

– Paper and board represent our core competence, but the others, such as paints, oil and cosmetics, are entirely new to us. We have to consider our role carefully – whether to be a raw material supplier or to engage in entirely new lines of business, says Hurskainen.

The same applies to biochemicals. A joint development agreement with Renmatix, a technology provider, was announced in the summer.

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Green ideas into greenbacks No matter how great the idea, it’s a long and winding road from new idea to profitable business, as exemplified by the UPM BioVerno project: investigation began in 2006 and large-scale production is scheduled for in 2014.

– Access to large quantities of biomass was the starting point. The next step was to identify potential new applications and the technologies and products already available, Hurskainen recounts.

– Next we had to decide which way we wanted to go, then acquire access to the necessary skills and competence, pilot equipment and technology suppliers – in other words, decide who we wanted to partner with. The biggest decision – whether to invest or not – was made after the development and pilot stage.

Customer needs are always the decisive element.

– We need more than a green image; we need to turn green ideas into greenbacks. We must deliver added value to the customer, and offer the eco aspects as a bonus. Keeping costs at a competitive level is a necessity. UPM Formi, for instance, can help the customer cut the number of production stages, depending on the application, Hurskainen points out.

Although the current legislation is creating markets for biofuel producers, laws can change, prompting major changes in business structures.

An opportunity for reinvention The bio-business offers UPM as a company an opportunity for reinvention, and UPM employees an opportunity for professional growth.

Most of the research and development staff have a background in chemistry. The new business opens doors to new areas of R&D outside paper and pulp.

– Our people are very excited about the direction our business is going.

Hurskainen himself appears equally excited.

When asked to provide a final comment on the subject, he exclaims: – We are determined to make this happen.

Just try not to stop us! n

UPM FORMI BIOCOMPOSITE UPM FORMI is made from virgin polyprolylene,

with an added 20–50 per cent of cellulosic fibre.

The fibres make UPM Formi stronger than most traditional plastics, which is why it can be used to make complex products with less material. This helps to reduce production costs and environmental impacts.

UPM Formi biocomposite can be recycled or burned for energy.

UPM BIOVERNO RENEWABLE DIESEL UPM BIOVERNO renewable diesel is processed

from crude tall oil, a pulp manufacturing residue.

The main stages of the manufacturing process are pretreatment of crude tall oil, hydrotreatment, recycle gas purification and fractionation.

The resulting renewable diesel is fully compatible with modern vehicles and fuel distribution systems.

UPM BioVerno will significantly reduce the greenhouse gas emissions of vehicles compared to fossil fuels.

BIOCHEMICALS UPM AND RENMATIX are jointly developing a

BIOFIBRILS BIOFIBRILS are micro and nanofibrillated cellulose

products which can be used for giving new characteristics to materials or for improving existing ones.

In interaction with water, biofibrils form a strong gel that can be used as a reinforcement agent in paper and packaging products.

Biofibrils can also be used to improve the quality and performance of a range of polymer products, such as paints and coatings, concrete and oil-drilling applications.

process for converting wood-based biomass into sugar intermediates for subsequent downstream processing into biochemicals.

Renmatix’s process employs water at very high temperatures and pressures to break down biomass through supercritical hydrolysis. Under such conditions, water can act as both powerful solvent and catalyst, creating rapid reactions.

Very small amounts of chemicals are needed to access the lignocellulosic sugars.

The long-term objective of this project is industrialscale production of competitive bio products to replace certain oil-based chemicals.

VTT Impulse 69

Research into

business

Surprising ideas and combinations of different technologies may be the recipe for successful business. The Finnish Funding Agency for Technology and Innovation Tekes and VTT work together to turn bright ideas into business.

Text Paula Bergqvist Photos iStockphoto, manufacturers

A

large number of great ideas are born in connection with projects conducted at research institutes, some of them falling into oblivion as researchers move on to the next project. Tekes is responsible for stimulating new business in Finland. It works together with VTT to turn ideas into business, thereby contributing to Finnish society.

Over the years, Tekes has developed and tested a range of funding instruments. Drawing on these experiences, Tekes launched the ’New knowledge and business from research ideas’ funding programme, with the first round of funding applications taking place in spring 2012. The funded ideas may not yet be ready for commercialisation but nonetheless show great potential.

– The role of Tekes is to offer funding to various organisations to encourage them to innovate and generate new business. Our objective is also to make companies marketable during the programme. With our new funding instrument, we’ve been able to encourage universities to launch spin-offs, says Pekka Soini, Director General of Tekes.

70 VTT Impulse

In the first programme year 2012, Tekes granted EUR 28 million to the hundred most promising projects. Information technology accounted for the largest number, but numerous service industry projects also received funding.

Tekes has been very pleased with the results.

Six per cent of all projects launched generated business within a year, and almost 90 per cent hold great promise. In only 10 per cent of the projects does the launch of business activities seem unlikely.

VTT performed very well in the funding round, with half of all submitted applications receiving funding. The number of funded projects totalled 23 and total funding came to almost EUR 7.3 million.

– The quality of VTT’s projects is very high.

VTT has always worked in close cooperation with the business sector, which naturally affects the mindset of its research personnel, Soini notes.

Entrepreneurial approach an asset It takes more than scientific competence to prepare market studies and market analyses, and ultimately to create viable business. But some scientists are indeed entrepreneur material, and Tekes and VTT encourage them to pursue their ventures and help them get connected with the right people to set up their business. Help is available for preparing a commercialisation plan, putting together a suitable business team, and for funding arrangements.

– It’s not easy to turn research projects into business. The ’New knowledge and business from research ideas’ funding programme has been an effective tool in helping us to identify promising ideas, prepare commercialisation plans, and accelerate funding arrangements, says Janne Viemerö, Director for startup companies at Tekes.

Leading the way in patent applications Securing patents for groundbreaking competences is important for creating new business.

VTT is one of the 3–4 most active patent application filers in Finland.

– Finland’s success depends on our ability to convert competence into new business. In USA

and Japan, 24 per cent of research funding is allocated to basic research, and 11 per cent in Korea. Finland should invest a great deal more in applied research, says Erkki KM Leppävuori,VTT’s President and CEO. Leppävuori believes VTT should engage in new, creative activities, but also make potential applications available for business use in the early stages of the project.

– It may take a long time – even 5 to 10 years – before the results of our research are available.

Simply focusing on the study of interesting phenomena – important though that is – is the duty of other organisations, not ours, Leppävuori says, with emphasis.

“SUCCESS DEPENDS ON OUR ABILITY TO CONVERT COMPETENCE INTO NEW BUSINESS.” In a multitechnology research organisation such as VTT, new ideas often arise in the context of technological convergence. These ideas result in patent applications, in licensing or in spin-off companies, all of which are beneficial to VTT’s own service research.

– Reinventing the business sector would be crucial for Finland, and we should invest more in applied research, says Leppävuori.

VTT Ventures VTT manages its commercialisation projects through a separate company: VTT Ventures Ltd. VTT Ventures Ltd.’s mission is to focus on extracting value from VTT technology in developing VTT-based high-tech companies with international growth potential.

VTT uses one of the following three paths to introduce its competence to the markets: commercial projects, IPR licensing, and setting up a company.

VTT Impulse 71

The Active Paper Company.

LightTerm Oy.

Helmee-Imaging.

During its short history VTT Ventures has invested in 26 companies in total, with the current investment portfolio consisting of 19 hightechnology companies, more than half also receiving funding from other sources, such as equity, angel or institutional investors.

– We have created an efficient spin-off process, combining early market testing of innovations, team building, IPR development and funding. Our role is similar to an equity investor’s role, and our aim is to exit the investee company at a suitable development stage. So far we have exited three investee companies. One of these is ST1 Biofuels, a company that makes biofuel from biowaste, says Antti Sinisalo, CEO of VTT Ventures.

VTT’s ideas take off The Active Paper Company develops active paper applications for use in business areas such as consumer advertising. The company’s paper is used in a range of products from glass coasters to stickers and cards – anything that features advertising-related changing graphics.

72 VTT Impulse

– Future applications include various testing materials for well-being or environmental analysis. The technology developed at VTT is based on the coordination of fluid in porous paper, explains Tomi Erho, the company CTO. Established in early 2013, LightTherm Ltd is a VTT spin-off that develops solutions improving the thermal properties of LED luminaires and lamps, and lowering the temperatures of LED semiconductors. These solutions will increase the thermal efficiency and life span of LED luminaires. According to CEO Petri Nyman, the market potential is significant.

– By 2020, more than 8 billion light bulbs in Europe will be replaced with LED luminaires, Nyman estimates.

The productisation of the luminaire, originally developed at VTT, has been swift, and preparations for joint production in China are being made with Salcomp.

While machine vision is commonly used for quality control purposes in industrial processes, human vision is still needed for the inspection of glossy surfaces. VTT has been working on a new

machine vision system for the quality control of brilliant high-gloss surfaces.

– A prototype for a seed-stage company called Helmee-Imaging already exists, and investment negotiations are currently under way, say Matti Saarinen and Petri Lehtonen from VTT. VTT has also been developing a new microspectrometer technology that enables the detection of chemicals and compounds from gases and liquids. With the MEMS technology based solution, laboratory analysis instruments can be

radically downsized to smart sensors.

This technology can be used to measure moisture, nutritional content, carbon dioxide and hydrocarbon gases, and for fuel analysis.

– We are currently building prototypes for pilot testing with potential customers and starting negotiations with financiers and funding agencies. Spectral Engines is our working title for this project, says Jarkko Antila,Senior Scientist and team leader at VTT. n

EARLY BIRDS SUCCEED IN BIOECONOMY QUICK ENTRY to the international markets and customer-

driven product development are the two areas that Development Manager Mika Aalto advises both new and experienced entrepreneurs to focus on, if they want to succeed in the bioeconomy sector.

Mika Aalto is responsible for new forest-based bioeconomy business in the Ministry of Employment and the Economy’s strategic programme for the forest sector, and is also a contributor to Finland’s national bioeconomy strategy. The global market outlook for bioeconomy is strong and positive.

– Bioeconomy is redirecting material flows, resulting in value network renewal. Companies entering the markets quickly are best equipped for business, Aalto says.

He believes success is built on four pillars: an idea, markets, funding, and an entrepreneur with drive and determination. Success will require the pooling of multidisciplinary skills and competences.

– In addition to internal and equity financing, public funding will also be needed for research and development, internationalisation, and for building pilot and demonstration facilities.

Sharing patents and ideas The forest industry has taken active steps to boost cooperation between major companies and SMEs. – The idea is that large companies give SMEs patents they haven’t used, or provide rights to the patents under feasible terms and conditions. Product and business ideas could be similarly circulated, Aalto explains.

– The next step is strategic partnership, which, in order to succeed, requires that both parties benefit in the long term and that mutual trust is established between the parties.

Finland has what it takes to succeed in bioeconomy According to Aalto, Finland has excellent chances of becoming a strong player in the bieconomy sector,

and not just because of the abundance of natural resources.

– Finnish companies have the expertise required to produce highly refined products efficiently, while saving water, energy and materials. There are already several successful Finnish companies operating globally in sectors such as process technology and process equipment manufacture, and new products are about to be launched that make novel use of the material and chemical properties of wood.

Determined steps should be taken to replace nonrenewable resources with renewables, and obtain maximal use of all side streams. Aalto mentions the closed materials loop where material discarded as waste in one place is used for raw material elsewhere.

– Demand for closed materials loop competence is growing globally. The Finnish process industry is already good at this, and should make its expertise available on the world markets. The Finnish forest industry is a great example of efficient material circulation.

The Ministry can support the growth of the bioeconomy through Tekes and VTT. It also has access to regulatory means that can be used to remove the barriers to bioeconomy, and give a clear direction to development work. Actions taken to shape the EU directives are also very important.

– In the Finnish forest sector, we are aiming at new turnover of one billion euros and an increase of EUR 250 million in added value by 2015, primarily through small and medium-sized enterprises.

The Ministry believes the Finnish bioeconomy sector will double its value by 2025, provided we do the right things and take determined action.

– It is a goal we can achieve. When you know where you want to go, it’s easier to get there! Let’s do it together!, Aalto concludes.

VTT Impulse 73

N.F. MCDONNELL & SONS N.F. MCDONNELL & SONS in Mount Gambier

is a medium-sized family business that started operations in 1944. Managing director Ian McDonnell represents the third generation of McDonnells running the business.

The company employs approximately 100 people, and processes 200,000 tonnes of log annually. Manufacture at present is mostly of packaging products, such as wood pallets.

McDonnell & Sons is currently investing in the mill, aiming at doubling its capacity in the next few years. Manufacture of structural products will also start once a new mill is finished in early 2014.

The products are sold on the domestic market and exported to Asia.

74  VTT Impulse

the green triangle SEEING THE WOOD FOR THE TREES IN

Text Anne Hänninen Photos Frank Monger

Compared to Nordic countries, trees grow rapidly in South Australia, but saw mills are currently inefficient in utilising them. ­ The forest industry needs to find a new path to the future.

VTT Impulse 75

G

lobalisation is having its effect on the forest industry in South Australia. New wood processing facilities are springing up all over the world, and old ones in traditional and entrenched regions have honed their business processes to near perfection.

This means tougher competition, in exports and domestically.

– One thing’s for sure: we can’t keep operating our businesses the way we have been for some years now. We need to look at new ways of doing things, says Ian McDonnell, managing director of N. F. McDonnell & Sons.

– We have a world-class resource, but are we doing the best we can with it?

TREE PLANTATION COUNTRY THE GREEN TRIANGLE is an area be-

tween the states of South Australia and Victoria, covering an area of six million hectares. Its healthy rainfall makes the region a verdant area in an otherwise mostly arid landscape.

The Green Triangle is one of Australia’s major forest regions, with extensive plantations of both softwood and hardwood.

Plantation forestry has been conducted in the region since the early 1900s.

Today the region has around 160,000 hectares of mature softwood plantations, mostly radiata pine. It also has around 110,000 hectares of primarily eucalyptus (blue gum) hardwood plantations, most of which have been established since the mid-1990s.

More than 61 per cent of plantations in Australia are now owned and/or managed by private sector businesses, with 33 per cent publicly owned and 6 per cent in joint ownership.

In recent years, 80-90 per cent of new plantation investment has come from the private sector. There is also a growing trend to commercialise state government assets. This also took place in the Green Triangle, where most plantations are now US-owned.

76 VTT Impulse

Government steps in In South Australia and especially in the Green Triangle region, the forest industry is a mainstay of the economy.

According to Manufacturing Innovation and Trade Minister Tom Kenyon, the south-east forestry industry accounts for approximately 35 per cent of local employment, and offers great potential for the region to secure a sustainable economic future.

However, both the market and industry have been in a decline, and the local saw mills find it hard to operate at a profit. The only local pulp mill closed in 2011, so the pulpwood that would be used in that process has no profitable market today.

To support the forest industry’s viability, the South Australian Department for Manufacturing, Innovation, Trade, Resources and Energy (DMITRE) invited VTT to undertake a study that identifies potential routes to increasing the industry’s competitiveness.

– It was our job to provide unbiased information on various alternatives for efficiency improvement and product range expansion. Our report offers a brief overview of the situation today and of different alternatives for the future, says John Kettle, International Operations Manager at VTT. – This is an important project for South Australia’s economy, as developing higher-value forestry products is the key to creating a sustainable future for the forestry industry, said Minister Kenyon.

VTT was selected as a world leader in translating cellulose fibre research into tangible busi-

“FOR OUR COMPANY, THE FUTURE IS VERY BRIGHT.”

VTT Impulse 77

McDonnell & Sons has invested millions of Australian dollars in the expansion of the mill.

ness opportunities. Its global connections to major international cellulose fibre players and investors were also considered important.

The study ‒ the Cellulose Fibre Chain Study ‒ is part of the State Government’s Manufacturing Works strategy, working with local industry to identify short, medium and longer term sustainable and achievable market opportunities.

In addition to this study, the State Government has launched the South East Forestry Partnerships Programme, an AUD 27 million State Government assistance package designed to encourage a viable and strong timber sawmilling industry in the region.

Roadmap for the future The first stage of the study focused on actor mapping, value chain analysis and analysis of the opportunity landscape.

During this stage, interviews were held with 23 stakeholders selected by DMITRE, such as forest owners, saw mills, harvesters, hauliers, and builders. One of the key findings was general agreement over the need to renew the industry.

The report also indicated that Australian saw mills have come up short with regard to continuous modernisation of their processes and technologies, and this has had an impact on performance. Poor yield per log, high labour costs and 78 VTT Impulse

low prices for residual materials are other factors going against the industry.

The second phase examined the South Australian industry and the market through different “lenses”, and formed four different paths to the future.

The Mass Lens considers how to make the industrial processes more efficient in the short term. This includes practical suggestions, such as employing X-ray and geometric scanning at saw mills to detect defects in logs, which can then be taken into consideration in the sawing pattern.

The Energy Lens looks at the possibility of building a bioenergy facility either as an independent unit, drawing material from the saw mills in the area, or integrated with a particular saw mill.

These two lenses have the potential of providing fairly quick-fix solutions for saw mills struggling with their profitability. These solutions could be implemented in 3‒5 years.

The two other lenses ‒ Molecular and Atomic ‒ call for more long-term planning and development.

Use of the abundant fibre resource in the making of biomaterials, such as bioplastics, and biochemical or nanocellulose, requires research and development, as well as suitable infrastructure which the area presently lacks.

Changing the mind-set Quick fixes are possible and even long-term change, even if they will take a lot of effort and resources.

A good example of a complete turnaround is Borregaard, which traditionally manufactured pulp and paper. Today, it is the leading supplier of vanillin (synthetic vanilla) produced from lignin.

The main obstacle for renewal of the forest industry in South Australia, however, is the current mind-set in the companies.

– The industry needs to work together with the government to realise the cellulose fibre opportunities offered by VTT. We need to embrace change and new opportunities, and cooperate. At the moment there is no collaboration here, says Ian McDonnell.

– We need to look at the rest of the world, and do an analysis of how competitive we are. We need to have enough volume to attract the level of investment needed.

John Kettle fully agrees: – Building business clusters requires a change in mindset, but I’m sure that by standing united, companies will win support from the State and Federal Government.

For McDonnell and his company, the first stage of the study was enough to ignite interest in how the forest industry operates in the rest of the world. In October, he visited Europe and became acquainted with power and heat generation in the old world.

McDonnell & Sons is already looking to the future, with the official opening last March of a new multi-million-dollar expansion of the mill.

The company has doubled its workforce in the past three years and is striving to be “world competitive” within its chosen market.

– For our company, the future is very bright. I also think the future can be strong for the whole industry here, if we are efficient.

Export opportunities to Asia and new possibilities on the domestic market support this view.

For example, there is a shortage of houses on the Australian market, and building timberframed houses would benefit the saw mills, provide an opportunity for producing value-added products such as cross-laminated timber, and reduce the carbon footprint of housing. n

TIMBER!

RADIATA PINE , also known as Monterey

pine, is low in density and fairly soft, often with very wide annual growth rings. It is widely used for the full range of structural and decorative applications including framing, lining, glue laminated beams, veneer and plywood.

Blue gum is one of the most extensively planted eucalypts, thanks to its rapid growth and adaptability to varying conditions. Eucalyptus comprises 65 per cent of all plantation hardwood in Australia, and is widely cultivated elsewhere in the world wherever rainfall is sufficient.

The timber has a light colour and high fibre yield, making it ideal for pulping. It is also known for its hardness and density, and so lends itself well to a wide range of uses: tool handles, furniture, panelling, fencing, poles, heavy constructions, beams, building frames and internal flooring, among others.

Eucalyptus can be harvested after 10-12 years for pulpwood, but requires over 40 years growing time to produce sawlogs. Pine can be harvested several times during a plantation’s 30-35 year life cycle.

VTT Impulse 79

THE FIRST OF ITS KIND IN THE NORDIC COUNTRIES:

a commercial passive building The Kodin1 department store for interior decoration and home goods in Raisio, Finland, consumes far less electricity than a traditional sales outlet, with savings equal to the annual consumption of 41 single-family houses.

Text Milka Lahnalammi-Vesivalo Photo Kesko

80  VTT Impulse

T

he first commercial passive building in the Nordic countries was opened this spring in Raisio. The construction project involved working together with VTT to develop standards for a commercial passive building and with the builder, Virtanen Yhtiöt Oy, to develop a solution that makes passive construction a worthwhile investment for both builder and tenant.

Anne Jaakkola, Concept Manager for K-Citymarket Oy and Anttila Oy, had for some time been exploring various ways of reducing energy consumption in retail outlets.

– In our Kodin1 department store in Lielahti, we’d previously introduced a more area-specific lighting system that used 38 per cent less energy than conventional outlets. For Raisio, we simply took this concept a little further, Jaakkola says.

Standards for a commercial passive building The building company Virtanen Yhtiöt Oy was interested in passive building even before the project. Jaakkola contacted VTT, who suggested developing general standards and solutions for a commercial passive building. Funding for the cooperation came from the Sustainable society project carried out by Tekes, the Finnish Funding Agency for Technology and Innovation. The Kodin1 department store in Raisio received the first commercial passive building certification from VTT. – We were able to create a concept applicable to both new buildings and renovation projects, Jaakkola says.

Kodin1 department stores are typically located in conjunction with a shopping centre, which sets certain limitations.

– We can apply certain elements of the concept, however, such as an energy-saving lighting solution.

Lighting adjustments generate big savings By using motion detectors and timers, lighting can be provided on demand, when and where needed. For example, the lights in warehouse corridors only turn on when motion is detected, while the constant lighting in display applications is provided using low-energy LED lamps.

Energy can also be saved by increasing local lighting at the expense of ambient lighting.

At Kodin1 in Raisio, carefully chosen materials, an air-tight building envelope and advanced air conditioning also contributed to energy efficiency. With less lighting, there is less need for cooling. The warehouse has only north-facing windows, which means they let in the daylight but block the sun’s heat.

Passive houses are always equipped with an airtight envelope and mechanical ventilation for excess heat recovery. The more spacious and structurally straightforward the ventilation ducts, the less energy the ventilation system consumes. To ensure structural simplicity and to optimise the ventilation system, the location of control rooms and offices were changed at the outlet design stage.

“LIGHTS IN WAREHOUSE CORRIDORS ONLY TURN ON WHEN MOTION IS DETECTED.” Careful planning and implementation Residential passive houses are typically more insulated than ordinary houses, but the focus in this commercial building was on airtightness.

Building a commercial passive house required significantly more meticulous planning and site supervision than in an ordinary building project. Special attention had to be paid to achieving sufficient airtightness for certification.

– This was a very well managed site, with a lot of attention paid to quality, and both the builder’s and VTT’s personnel attending the site, says Jaakkola.

Not for sale While established in the residential sector – though already being superceded by zero energy building – the passive house concept is less widespread in commercial building. The reason for this, according to experts, is that commercial buildings are meant to be sold, and it takes years for a passive house to repay itself.

VTT Impulse 81

“THE FUTURE TREND IS TOWARDS ZERO ENERGY BUILDING.” – Virtanen Yhtiöt built this for themselves, not for sale. It’s also our intention to stay here for as long as possible. That’s why we were motivated to reduce life cycle costs, even though the building costs were slightly higher, Jaakkola says.

Kesko usually leases the premises that house its retail outlets, and commercial buildings are generally built for sale. This tends to encourage builders to minimise building costs rather than life cycle costs.

– This time, we created an entirely new lease agreement to make it lucrative for both parties to invest in low life cycle costs, Jaakkola explains.

The long investment payback time meant some elements, such as solar panels, had to be left on the drawing board for the time being, but could be installed at a later date.

Towards a zero energy store?

The future trend is towards zero energy housing – or virtually zero energy – which requires the introduction of renewable energy sources. For the Kodin1 project, geothermal heating would not have been viable as district heating pipes were available on site.

– Interesting though zero energy construction is, it places considerable demands on the building site, such as access to renewable energy, Jaakkola points out.

Finland’s lack of a feed-in tariff, she believes, holds back more extensive utilisation of solar energy. Installing solar power systems would be far more rewarding if the excess energy could be sold to a national grid. n 82 VTT Impulse

CLIMATE AFFECTS CERTIFICATION VTT EXPERT SERVICES has prepared certi-

fication criteria for energy-efficient buildings, and awards certifications to passive houses that meet these criteria. VTT Expert Services Ltd, a subsidiary of VTT, offers certification services independently of the work carried out by the parent company.

The requirements specified for passive houses vary within Europe due to the different climate conditions in the various countries.

– Cost efficiency is an integral part of the passive house concept, which means there is a limit to the price of energy efficient solutions that can be implemented. For instance, it is impossible to achieve the same level of heat recovery in Finland as in Central Europe, says Senior Specialist Mikko Saari, who took part in the certification process for Kodin Ykkönen in Raisio.

The project prompted some adjustments to the certification criteria to ensure a better fit for commercial buildings.

The warm climate in the Mediterranean countries, on the other hand, imposes other limitations. However, some common criteria have been specified for the certifications applied in different countries in projects such as the EU’s Promotion of European Passive Houses, in which VTT also took part.

VTT

VTT Technical Research Centre of Finland is the biggest multitechnological applied research organisation in Northern Europe.

VTT provides high-end technology solutions and innovation services. From its wide knowledge base, VTT combines different technologies, creates new innovations and a substantial range of world class technologies and applied research services thus improving its clients’ competitiveness and competence. Through its international scientific and technology network, VTT can ensure the efficient transfer and utilisation of information and technology.

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VTT Impulse is VTT’s publication on science, technology and business.

Published twice a year in Finnish and in English.

Publisher: VTT, Tekniikantie 4 A, Espoo, Finland, P.O. Box 1000, FI-02044 VTT. Telephone +358 20 722 111.

Editor-in-chief: Olli Ernvall, tel. +358 20 722 6747.

Editorial Board: Erkki KM Leppävuori, Jouko Suokas, AnneChristine Ritschkoff, Kari Larjava, Petri Kalliokoski ja Paula Bergqvist.

Production and layout: MCI Press Oy. Printing house: Edita, Helsinki 2013. Subscriptions and changes in address: info@vtt.fi.

ISSN 1798-0178. The opinions expressed in this publication are those of the interviewees and do not necessarily reflect the views of VTT.

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VTT Impulse 83

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