ORONO (AP) – The National Science Foundation and the state have awarded $10.35 million to the University of Maine to research the prospects of using wood to make ethanol, plastics, industrial chemicals and other products.

Maine’s paper mills are interested in supplementing their revenues by creating new goods using unused parts of the tree.

“This builds on something we already have,” said Janet Yancey-Wrona, science adviser to Gov. John Baldacci. “It’s a good example of a new technology where Maine can expect to have a competitive advantage because we have the history, skills and natural resources.”

With the three-year grant, which consists of $6.9 million from the National Science Foundation and another $3.45 million from the state, researchers will try to determine the types of products that could be created, and how to manufacture and market them.

David Colter, president of GAC Chemical Corp. in Searsport, is excited about the potential the technology holds if it’s developed.

“It’s taking a waste product and giving it value,” said Colter, whose company sells water treatment and papermaking chemicals to paper companies.

Some of the money will be used to purchase equipment and convert university facilities into research labs. Openings will be created for about 45 people, including three new faculty members for the engineering and forest resources departments.

The University of Maine will combine research efforts with faculty and students from the University of Southern Maine and other public and private universities and colleges in the state, as well as with Rensselaer Polytechnic Institute in New York and the University of Tennessee. In addition, the University of Maine will team up with landowners and officials from the pulp and paper, building materials and chemical industries.

Hemant Pendse, chairman of the department of chemical and biological engineering and managing director of the forest bioproducts project, said the university research “puts us in a leadership position on a national and international scale.”

“It will allow us to continue to do research so the private sector can take these things to their commercial stage much faster,” he said.

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Information from: Bangor Daily News, http://www.bangornews.com

AP-ES-03-28-06 1100EST