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01 / 05
From Waste to Wealth: the Alchemy of Innovation

Blog Post | Pollution

From Waste to Wealth: the Alchemy of Innovation

Environmental challenges can be transformed into economic opportunities.

Summary: Scientists and engineers are finding ways to turn pollution and waste into valuable resources. From recovering fertilizer from toxic lakes to creating biodegradable packaging from farm residues, innovation is transforming environmental problems into opportunities for growth. By reimagining waste as a resource, we can make the planet cleaner while fueling new industries and jobs.


Every summer, toxic algae blooms turn Lake Erie and other US lakes into a green soup, threatening drinking water for millions. Every year, American farmers burn millions of pounds of grain stalks after harvest. And every day, Americans throw away enough packing peanuts to fill an Olympic swimming pool. What if I told you that each of these waste streams could become valuable resources—and that the solutions are emerging from university laboratories right now?

We stand at a unique moment in history. For the first time, we possess the scientific tools to transform our most pressing environmental challenges into economic opportunities. The numbers tell a compelling story. According to the World Bank’s “What a Waste 2.0” report, global waste is projected to rise by 70 percent, from 2.01 billion tons today to 3.4 billion tons in 2050. Yet, the circular economy, or using waste productively to create wealth, could unlock $4.5 trillion in economic benefits by 2030. The question isn’t whether we can afford to innovate—it’s whether we can afford not to.

Three Breakthrough Innovations from North Dakota

The convergence of nanotechnology, materials science, and biotechnology has created unprecedented possibilities for environmental remediation. In a laboratory at North Dakota State University, my research team is developing three innovations that exemplify this waste-to-wealth transformation:

  1. Calcium peroxide nanoparticles that absorb phosphates from polluted lakes and convert them into sustainable fertilizer
  2. Flax-fiber composites that transform agricultural waste into biodegradable packaging materials
  3. Starch-based foam alternatives that replace petroleum-based packing peanuts with compostable materials

These aren’t pie-in-the-sky concepts. They’re practical solutions that could scale from our Fargo lab benches to global implementation within a decade. Here’s how each one works—and why they matter.

Turning Lake Poison into Farm Food

Over 500 “dead zones” now plague our planet’s bodies of water, with the number doubling every decade since the 1960s. These oxygen-depleted areas, caused primarily by phosphate runoff from agriculture, cost the United States $2.4 billion annually in economic losses. The 2014 Toledo water crisis, which left half a million people without access to drinking water for three days, was just a preview of what may come unless we act.

Here’s where nanotechnology can change the game. At our NDSU lab, we’re developing calcium peroxide nanoparticles—imagine particles 5,000-times smaller than the width of a human hair—that act as molecular sponges for phosphate pollution. When deployed in eutrophic (nutrient-rich) lakes, these nanoparticles serve a dual purpose that borders on alchemy: First, they absorb phosphates from the water with an efficiency 500-times greater than conventional materials; second, they slowly release oxygen over 30 days, breathing life back into suffocating bodies of water.

But here’s the truly exquisite part: Those absorbed phosphates don’t disappear. Our research team harvests them to create sustainable fertilizer. Consider the irony—the very phosphates that are killing our lakes came from fertilizer runoff, and now we’re capturing them to make new fertilizer. It’s the circular economy in its purest form.

The timing couldn’t be more perfect. The global phosphate fertilizer market, currently valued at $72 billion, is facing a sustainability crisis. Morocco controls 70 percent of the world’s phosphate rock reserves, and at current extraction rates, most of these reserves will be depleted within a century. By recovering phosphates from water pollution, we’re not just cleaning lakes, we’re securing agriculture’s future. Our preliminary calculations suggest that phosphate recovery from US agricultural runoff alone could replace 15 percent of imported phosphate fertilizer, saving farmers billions while restoring water quality.

From Farm Waste to Amazon Packages

The second innovation transforms an agricultural nuisance into packaging gold. North Dakota grows 90,000 acres of flax annually, primarily for the valuable oil in its seeds. But after harvest, millions of pounds of stalks are typically burned or buried, a waste of remarkably strong natural fibers that have been used for over 30,000 years for textiles, food, paper, and medicine.

At our NDSU lab, we’re extracting these fibers and mixing them with biodegradable polymer matrices to create packaging materials that rival petroleum-based plastics in performance while completely biodegrading in three to six months. The resulting composite materials achieve tensile strengths of 50–70 megapascals—stronger than many conventional plastics—using 35 percent less energy to produce.

The market is hungry for such solutions. The biodegradable packaging sector is experiencing rapid growth, projected to reach $922 billion by 2034. More important, consumers are voting with their wallets: 82 percent say they’ll pay premiums for sustainable packaging, and 39 percent have already switched brands for better environmental practices. Major corporations aren’t waiting. Dell already uses mushroom-based packaging grown on agricultural waste, while IKEA has committed millions of dollars to eliminate polystyrene entirely.

North Dakota sits on a gold mine of opportunity. The state’s two million acres of various crops produce enormous volumes of agricultural residue. By viewing these stalks, husks, and shells not as waste but as industrial feedstock, North Dakota could become a hub for sustainable packaging materials. A single processing facility could create 200 rural jobs while generating $50 million in annual revenue from materials currently worth nothing.

Replacing Satan’s Snowflakes

The third innovation addresses what some environmentalists refer to as “Satan’s snowflakes”—namely, those infuriating polystyrene packing peanuts that seem to multiply in your garage and never decompose. Americans generate enough polystyrene waste to circle the Earth in a chain of coffee cups every four months. This material persists for 500 to one million years, breaking into microplastics that contaminate our food chain.

In our NDSU lab, we’re developing starch-based foam alternatives using corn, wheat, and potatoes, all crops that North Dakota grows in abundance. These “bio-peanuts” dissolve completely in water, compost within 90 days, and require just 12 percent of the energy needed to produce traditional polystyrene. They even eliminate the static cling that makes unpacking electronics feel like wrestling an electric eel.

The economics are compelling. Companies such as electronics retailer Crutchfield report saving $70,000 to $120,000 annually in freight costs after switching to lighter, bio-based packing materials. With 11 states and 250 cities already banning polystyrene foam, and the European Union implementing strict regulations on single-use plastics, the market for alternatives isn’t only growing, it’s becoming mandatory.

Perhaps the most profound impact is psychological. Every online purchase delivered with biodegradable packing materials sends a message: Modern conveniences can be maintained without mortgaging the environment. While a small victory, such progress is building momentum for larger, more significant changes.

The Scaling Potential: From Lab to Global Impact

The opportunity is enormous: If just 10 percent of US agricultural waste were converted to packaging materials, it would replace 33 million tons of petroleum-based plastics annually. If our phosphate recovery technology were deployed in the 100 most-polluted lakes globally, it could recover enough phosphorus to fertilize five million acres of farmland while restoring recreational value worth $10 billion.

These aren’t distant possibilities—our NDSU innovations are progressing through the typical stages: proof of concept, pilot testing, demonstrations, and commercialization. We’re currently in pilot testing, with plans for field demonstrations next year. Industry partners have expressed strong interest, particularly from agricultural cooperatives seeking value-added opportunities for crop residues.

Innovation Beats Despair: Lessons from Environmental History

Some critics might ask, “Aren’t these solutions just Band-Aids on the gaping wound of industrial civilization?” Such a question, however, misses the profound lesson of environmental history. Every major pollution crisis we’ve faced, from London’s killer smog to acid rain and the ozone hole, seemed insurmountable until human ingenuity proved otherwise.

Consider the track record. Since 1970, the United States has reduced major air pollutants by 78 percent while increasing gross domestic product by 321 percent. The Montreal Protocol has eliminated 99 percent of ozone-depleting substances, saving approximately two million people from skin cancer each year. Acid rain, once predicted to cost $6 billion annually to address, was solved for less than $2 billion per year. These victories weren’t achieved by abandoning modern life but by making modernity cleaner and more efficient.

The same patterns are emerging in clean technology. Solar panel costs have plummeted 90 percent in the past decade. Renewable energy is often among the lowest-cost power sources, especially when comparing marginal generation costs. When accounting for storage or backup needs, however, total system costs can vary by region and grid mix. Battery prices have decreased by 97 percent over the past 30 years. Each follows Wright’s Law—costs decline predictably as production scales. Our NDSU waste-to-resource innovations will follow similar trajectories.

The investment community recognizes this potential. Clean technology attracted $1.8 trillion in investments globally in 2023, surpassing fossil fuel investments for the first time. The bioeconomy, currently valued at $4 trillion, is projected to reach $30 trillion by 2050. These aren’t charitable donations, but rather hard-nosed bets on profitable technologies that happen to benefit the planet.

From Lab Bench to Marketplace

Numerous university spin-offs have traveled the well-worn path from laboratory to marketplace. Companies such as Membrion (ceramic membranes developed at the University of Washington) and Integricote (nanocoatings developed at the University of Houston) demonstrate that academic innovations can achieve commercial success while addressing environmental challenges.

The Optimistic Imperative

The waste crises facing our generation are real and urgent—but so is our capacity to transform them into opportunities for prosperity. The toxic algae choking our lakes could become tomorrow’s sustainable fertilizer. The agricultural waste burning in our fields could become the packaging protecting tomorrow’s e-commerce deliveries. The petroleum-based foams polluting our oceans could be replaced by materials that harmlessly dissolve back into the earth.

This transformation, however, won’t happen automatically. It requires continued investment in research, supportive policies that incentivize innovation over incineration, and entrepreneurs willing to scale laboratory successes into industrial realities. The trajectory is clear: Waste is becoming wealth, pollution is becoming profit, and environmental restoration is becoming economic opportunity.

From my lab bench in Fargo, I see a future in which every environmental challenge sparks a thousand innovative solutions, every waste stream becomes a value stream, and the same human ingenuity that created these problems engineers their solutions. That’s human progress at its finest.

Society of Petroleum Engineers | Energy Production

Mazama Energy Reports Record 629°F Geothermal System

“Geothermal developer Mazama Energy announced it has created the world’s hottest enhanced geothermal system (EGS) at its pilot site in Oregon’s Newberry Volcano, reaching a bottomhole temperature of 629°F (331°C). The Frisco, Texas-based company said its latest milestone, achieved in late October, sets a new benchmark for geothermal development and advances its goal of generating electricity for less than $0.05/kWh.

Located in the Cascade Range, Newberry is one of the largest geothermal reservoirs in the US. Mazama mobilized a rig to the site in October 2024, converting a legacy well into a water injector and drilling a new deviated producer well to a total measured depth of 10,200 ft. The producer was placed within 6 ft of its planned trajectory, and circulation tests confirmed hydraulic connectivity between the wells. The project was funded in part by a $20-million grant awarded to Mazama last year by the US Department of Energy…

Mazama’s next step is to scale the technology to a 15-MW pilot project using horizontal wells, followed by a 200-MW commercial development at Newberry. Future wells are expected to target temperatures exceeding 750°F (400°C), which the company said could yield up to 10 times the power density while using 75% less water than current EGS methods.”

From Society of Petroleum Engineers.

Blog Post | Innovation

The Land of Ice, Fire, and Innovation

Innovation has served Iceland for 1,150 years. Why change a working recipe?

Summary: Iceland has long thrived through innovation and freedom. Its history is one of transforming scarcity into strength and discovery. Joining the European Union could trade entrepreneurial vitality for bureaucratic constraint and regulation. Iceland’s story proves that wealth flows not from the ground, but from the boundless resource of human imagination.


I recently had the pleasure of visiting Iceland, a country of about 390,000 people. The place feels like a mash-up of Hawaii and Alaska, with a land area roughly the size of Kentucky. Iceland has around 130 volcanoes, with about 30 considered active. Along with the volcanoes there are around 500 earthquakes per week. Many of these are microquakes (below a magnitude of 2.0) that go unnoticed, but about 44 a year register a magnitude of 4.0 or higher within 180 miles of the island.

The statue of Leif Erikson and the Hallgrímskirkja church in Reykjavík, Iceland

The International Monetary Fund projects Iceland’s GDP per capita to reach $81,220 in 2025, adjusted for purchasing power parity (PPP). This compares to $89,110 for the US and $64,550 for the European Union (EU).

The purpose of my visit was to talk about why Iceland should or should not join the EU. The event was hosted by Students for Liberty Europe and RSE, the Icelandic Centre for Social and Economic Research. What does this topic have to do with our book, Superabundance?

In our book we argue that we’re experiencing a period of superabundance, where personal resource abundance is increasing faster than population growth. This period started about 200 years ago after millennia of stagnation. We attribute this in large part to people recognizing that the freedom to innovate lifts humanity out of poverty. Innovation is the discovering and sharing of valuable new knowledge in markets. Around 1820, the planet’s dormant entrepreneurs began to blossom and bear fruit. But Iceland has been innovating much longer than 200 years.

Iceland can be considered a creation of entrepreneurs. It was first settled around 874 CE by Norse explorers, primarily from Norway, led by Ingólfr Arnarson, who is traditionally recognized as the island’s first permanent settler. He established his homestead in what is now Reykjavík (“Smoky Bay”), named after the steam rising from nearby hot springs.

Throughout history, the creators have fled the takers—escaping oppression to found new realms of freedom where ideas could multiply and wealth could grow. This is the ancient rhythm of renewal that gave birth to America. The settlers of Iceland were largely Vikings, along with some Celtic slaves (it was typical of the times to enslave defeated peoples) and settlers from the British Isles. Drawn by the island’s fish and grazing land, they sought independence from Norway’s consolidating monarchy.

By 930 CE, the settlers established the Althing, one of the world’s oldest parliaments, at Þingvellir, creating a system of governance where chieftains met annually to settle disputes and make laws. This marked the start of the Icelandic Commonwealth, a decentralized society without a king.

Iceland’s Parliament House

The population grew to around 50,000 by the 11th century, sustained by farming, fishing, and trade. The Commonwealth lasted 332 years, until 1262, when internal conflicts and external pressure from Norway led Iceland to pledge allegiance to the Norwegian crown, ending its independence. This set the stage for centuries of foreign rule, first by Norway and later Denmark. Iceland finally achieved full independence 682 years later, in 1944, establishing the modern Republic of Iceland.

Wealth Is Knowledge and Growth Is Learning

Superabundance is based on the ideas of Julian Simon and George Gilder. Two of the book’s key principles are that wealth is knowledge and growth is learning. These apply directly to Iceland—a nation that turned scarcity into strength and desolation into discovery. With little arable land and few natural endowments, Icelanders learned that the ultimate resource was not in the soil or the waters but in the capacity to imagine and create.

When oil shocks hit in the 1970s, Iceland had little domestic energy. Rather than surrender to scarcity, Icelanders turned to what they had in superabundance. They drilled not for fossil fuels but for fire beneath the earth, turning volcanic fury into light and heat. Today, nearly all of Iceland’s power flows from geothermal and hydroelectric abundance—proof that energy, like wealth, begins not with matter but with knowledge.

And from this same well of ingenuity emerged a national symbol—the Blue Lagoon. The world-famous pools and spa were born from the overflow of the Svartsengi geothermal power station, where geothermal brine spilled into a lava field and transformed an industrial by-product into a national treasure. What began as an accident became an emblem of Icelandic creativity—a living harmony of mind and matter, fire and water.

The Blue Lagoon reminds us that wealth is not drawn from the ground but flows from the fountain of human imagination, where even the castoffs of creation can shimmer with new light. In Iceland, energy is not merely harnessed—it is redeemed.

In the early 20th century, Iceland was a country primarily reliant on imported coal to meet its energy needs. The first hydropower station was built in 1904, and today there are 15 stations producing 73 percent of the nation’s electricity. Geothermal represents the other 27 percent.

Ljósafoss Power Station

Abundant, affordable, and reliable energy is one of the fountainheads of modern civilization, turning ingenuity into prosperity. Yet Europe’s leaders, in their zeal to perfect nature, have turned against the very forces that sustain it. By dismantling coal, nuclear, and gas in favor of windmills and solar panels, they are not advancing progress but reversing it, replacing mastery with dependence and innovation with austerity. The continent that once ignited the Industrial Revolution now flirts with a new age of scarcity—an empire of entropy cloaked in virtue. The great tragedy is the belief that prosperity can be preserved by suppressing the freedom that created it. Prosperity follows those who dare to learn from the world, not those who try to silence it.

For Iceland to thrive, it must continue to unleash its creative energy—to innovate, to speak, and to let knowledge flow as freely as its geothermal springs. Iceland is proof that wealth is not in the ground but in the mind. When faced with the scarcity of matter, Icelanders discovered the infinite power of knowledge.

That same spirit of redemption drives Iceland’s modern economy. From deCODE genetics, which unlocked the secrets of the Icelandic genome, to Össur, whose prosthetics restore mobility with grace and precision, Iceland exports ideas more than goods. Its renewable energy now powers data centers and digital frontiers, where bits replace barrels and imagination fuels growth. And in the northern village of Ísafjörður, Kerecis has turned the skin of cod—once discarded as waste—into a life-giving biomaterial that heals human wounds across the world.

Iceland reminds us that every economy is a learning system, and every act of enterprise a revelation. Growth is not a race for resources but a search for truth—the discovery of new knowledge that multiplies as it is shared. In this sense, Iceland has learned its way into wealth, proving that in the long dialogue between man and nature, the mind is the great multiplier.

The story of Iceland is the story of civilization itself. Every act of creation is an act of learning, a small echo of the divine mind that made the world intelligible. Wealth in its truest form is not measured in metals or markets but in moments of revelation—when knowledge transforms scarcities into abundances. Iceland proved the eternal law of creativity: that human learning, illuminated by faith and freedom, can turn even the coldest rock—or the humblest fish—into a beacon of light.

Choose Wisely

So why would a nation of entrepreneurs and innovators want to be subject to a union of regulators and bureaucrats? As of 2024, the number of staff working for the European Commission is over 80,000 across all 76 EU bodies. That would be one regulator for every 4.8 Icelanders. The future of Iceland lies with leaders like Thor Jensen, Björgólfur Thor Björgólfsson, Fertram Sigurjonsson, Heiðar Guðjónsson, and Bala Kamallakharan, not armies of Brussels bureaucrats.

To secure its future, Iceland must remain a beacon of open inquiry and energy creativity. It should champion innovation over ideology—embracing every technology that multiplies human capability rather than constrains it. By coupling free markets with free minds, Iceland can continue to illuminate a path from scarcity to superabundance, showing the world that the greatest renewable resource is human creativity itself.

Choose wisely, Iceland. Your history is watching.

Find more of Gale’s work at his Substack, Gale Winds.

The Economist | Energy Production

Geothermal’s Time Has Finally Come

“Fervo is a buzzy geothermal-techno­logy startup backed by Google and other high-powered tech investors that wants to turn a once-neglected source of energy into a powerhouse. The privately held firm, valued at some $1.4bn, will start producing electricity next year in the first phase of a 500-megawatt deal with the power division of Shell, an oil company, and with a Californian utility. That is the largest commercial contract agreed for geothermal electricity in the industry’s history.

It is the first shot in an incipient geothermal revolution. Today, less than 1% of global (and American) energy comes from geothermal. But researchers at Princeton University predict that technical innovations mean widely available geothermal power could, by 2050, produce nearly triple the current output of the country’s nuclear power plants (which supply roughly 20% of America’s electricity at present). By 2035, the International Energy Agency reckons cumulative investment in geothermal globally could reach $1trn, a big jump from the $1bn to $2bn invested in 2024.”

From The Economist.

Wired | Energy Production

Valar Atomics: First Nuclear Startup to Achieve Criticality

“Startup Valar Atomics said on Monday that it achieved criticality—an essential nuclear milestone—with the help of one of the country’s top nuclear laboratories. The El Segundo, California-based startup, which last week announced it had secured a $130 million funding round with backing from Palmer Luckey and Palantir CTO Shyam Sankar, claims that it is the first nuclear startup to create a critical fission reaction.

It’s also, more specifically, the first company in a special Department of Energy pilot program aiming to get at least three startups to criticality by July 4 of next year to announce it had achieved this reaction. The pilot program, which was formed following an executive order president Donald Trump signed in May, has upended US regulation of nuclear startups, allowing companies to reach new milestones like criticality at a rapid pace…

Criticality is the term used for when a nuclear reactor is sustaining a chain reaction—the first step in providing power…

There’s a difference between the type of criticality Valar reached this week—what’s known as cold criticality or zero-power criticality—and what’s needed to actually create nuclear power. Nuclear reactors use heat to create power, but in cold criticality, which is used to test a reactor’s design and physics, the reaction isn’t strong enough to create enough heat to make power.

Before this year, startups like Valar would have to go through the country’s nuclear regulator, the Nuclear Regulatory Commission (NRC), before trying any criticality tests. The NRC, which has a lengthy licensing process, traditionally maintains authority over all nuclear reactors. This includes small modular reactors, which, as their name suggests, are much smaller than traditional nuclear reactors; these advanced technologies, like the ones Valar is trying to bring to market, have never been commercially deployed in the US. However, both the Department of Defense and the Department of Energy have some legal ability to develop their own reactors without going through the NRC, including some solely used for research purposes.”

From Wired.