Atomic Ultron - Case Study 1 ( SDG 2 )

Concept:
The vision of UN SDG 2 is to end world hunger and malnutrition of all forms by 2030. With the rise of the
knowledge and use of nanotechnology. To reduce and eventually eliminate the effect of global warming
on agriculture ; using nanoclay, nanotubes and even nanoparticles to produce low albedo asphalt for
coating on roads would help promote a cooler climate for cultivation. This works along with the ‘Thermal
Mountain Effect’, wherein low albedo asphalt heats up the air and pushes it higher up. The principle of
convection forms the basis of this theory as it states that, when air moves up a slope (eg; mountain), it
rises up and as a result more precipitation is produced to an increase in the number of clouds. This
eventually provides a much cooler environment to help agriculture to flourish in. The increase in
agriculture will lead to adequate food resources and an increase in food security to the world, thus aiming
for SDG-2.

PESTEL :
Political:
Asphalt is largely produced in bulk quantities by The US, followed by China. This means that it can be
exported to several countries, as well as marketed to those countries governments, especially those
facing food shortage or have low food security,( eg ; Mali, Burkina Faso, and Nigeria), to be used as a
coating on road surfaces. With this, low albedo Asphalt can help these countries achieve a cooler and
favourable climate in order to allow agriculture to thrive. Mali, Burkina Faso and Nigeria are also well
allied, when the asphalt is introduced into a country in this region, the allies are more likely to choose to
invest into the business - this leads to high demand of the asphalt from nanoparticles, thus increasing
market share globally. However this will depend on the overall performance of the asphalt in the regions.
All the three countries maintain good diplomatic relationships with the US and China, making it easier to
expand the business’ international consumers.
Economical:
The use of this artificial thermal mountain effect is undeniably driven by economic factors. The dire
requirement of such a system is due to several global economies having a massive food shortage. The
basic economic problem of scarcity is clearly visible in countries, such as Somalia, Yemen, and The
Democratic Republic of Congo, from their extreme food insecurity. This product of large hot asphalt mix
gives such economies a chance for a rise in their GDP once again. The increased supply of agricultural
food due to more optimum temperatures allows for both increased food availability and for lower food
prices, thus making food accessible to everyone. This economic growth will not only solve the SDG 2 of
zero hunger, but also increase job opportunities for those in need and aid the economy in the
strengthening of their primary sector.

The lower food prices due to this product are also highly beneficial for the economy's general price level.
This is because countries with food shortages are likely to experience high levels of inflation (eg ; Yemen
with its current rate of 17.1%) This is because these economies all suffer from elevated domestic food
prices from which such highly priced food is calculated monthly into the economy’s CPI. This means that
with significantly lower costs of food, the inflationary pressure on the economy is relieved.

The use of the hot mix asphalt also ultimately provides those economically inactive or unemployed with
job opportunities. This is because with the cooler temperatures, agriculture can be carried out in most
areas of the country. The food or resources grown from this can be used for both private consumption, as
well as for the purposes of selling. As a result, the economy would be operating at a more efficient rate
with its factors of production being used at its optimum.

Social:
Asphalt is already one of the most common choices used when it comes to surfacing roads ; 60 million
tons is used in the US per year with over 94% of the paved roads in the US being already surfaced with
asphalt. Communities and government agencies choose to use asphalt as it's an efficient way to save
money whilst keeping the public’s safety by providing a well-built surface within a short amount of time in
maintenance. This is mainly due to it being easy to replace and repair whilst being strong and relatively
affordable, since it is way quicker when drying compared to concrete, getting the job done quicker with a
very short amount of downtime, thus increasing productivity in the area overall.
The general attitude of people towards being environmentally friendly has also increased in the present
day, asphalt is frequently reused, thus decreasing the demand in non–renewable resources. Communities
choosing what to use when surfacing their pavements would choose asphalt as it’s more likely to be
socially accepted by pressure groups, which will then bring a positive reputation to the low-albedo
asphalt produced by nanotechnology itself, thus increasing the demand, overall increasing profits.

Technological:
Since asphalt is mainly used for construction of roads, this will affect the market for asphalt as large
amounts are needed for this project. For production of asphalt, a high amount of bitumen is required
therefore will affect the market in oil and will cause an increase in prices of oil as the shortage of oil.

An asphalt milling machine that uses human-driven freezing milling machine that digs up asphalt
surfaces will be used. We also use fractional distillation of crude oil to separate the unwanted products
that aren’t asphalt, as well as X-Ray Diffraction to study about the nanomaterials to make sure there
aren’t any errors.

Our nanomaterial is nanoclay as it’s rich with minerals. Nanoclay is an inorganic material rich in minerals
such as silica, calcium, aluminium, and bentonite. These minerals are useful as the surface charge of clay
materials providing excellent water retention. With this nano clay in soils, it will help the hold a volume of
water for a longer period of time decreasing water consumption.

For production, the urban heat island effect is used in pavements as they can absorb solar radiation and
re-emits that radiation as heat. This increases the temperatures around 7 °F. This effect is helpful for us
as the hot air rises and when it has reached the atmosphere the temperature will decrease and will help
to induce rain.

Environmental:
The effects asphalt has on the environment are positive, as it only releases a small amount of greenhouse
gases. In addition to this, asphalt doesn't rot hence can be used over and over again when recycled ;
resulting in a 20% decrease in carbon dioxide emissions since less energy and fuel is being used when
compared to the production of brand new asphalt, as well as taking fewer hours in the manufacturing and
production process, thus being a more efficient solution, this reduces the amount of waste that is thrown
into the earth that contributes to global warming. Low albedo asphalt also significantly changes the
weather as it produces a cooler environment for plants and animals to grow in, the hot weather will be
changed into a cooler more relaxing weather where plants and animals have their optimum growth.

Legals:
During the manufacturing process,there must be safety measures put in place when handling hazardous
materials such as the hot asphalt and nanoparticles which can easily be absorbed/ingested by the body ;
the OSHA standard states that nanomaterials which are easily dispersed should be isolated and
contained. All workers must wear PPE to reduce their exposure to raw nanomaterials, as implied in
Section 5(a)(2) of the Occupational Safety and Health act of 1970 - this will increase the overhead costs,
but it is necessary to comply with the legal factors and avoid fines. Moreover, producers should provide
clear information to customers regarding proper storage, handling, and disposal of asphalt products to
ensure safe use, and have complete transparency to the countries purchasing these, as it is considered a
long-term investment for the consumers for improving their country.

Marketing Plan :

Due to the government as our target customers , a website will be created to address the business’ goals
and provide an overview on what differentiates our nano-silica based asphalt, within the asphalt industry.
It would include important contact information and corporate data, so workers from the public sector
could directly look at what we have to offer, and how we present ourselves to the public. We would also
do a press-release to build a greater reputation and to build awareness about the business. This would
lead to the business being on news articles/magazines - where people working in the public sector are
likely to come across. Building a consistent awareness of the business is important as it would be a well
known business name, and when the business idea is pitched to the government, the business’ name is
more valued. With this, considering the goal of eventually increasing food production means it’s good for
the economy of the country- this goes hand-in-hand if it’s presented well in the public eye.
Financial Plan :

As it is a new business, the overwhelming start up costs results in a net loss of 50 million USD. As
the business goes on for multiple years , total costs will be lower than the first year and it is
expected that revenue will increase. A net profit for the business in upcoming years is expected
to increase. The revenue will eventually reach the same value as fixed costs and the business will
reach break-even.
Break- even diagram :

Selling price: 8mil USD (per unit of 1 million square metres)

Ability to make Money :

In the first year, 10,000,000 USD is spent on machinery as an initial cost, which is not carried over to the
following years as the average use of an Asphalt production plant is 20-30 years. It is a one-time expense,
and a valuable asset as the whole business depends on the Asphalt production plant machinery for
producing its products being sold. This valuable asset will bring about 20% for the average rate of return
annually - if the business’ sales constantly rise ; thus can be fully returned of its initial investment in 4-5
years. Once reached, the business starts earning profit without having to contribute to what it initially
paid for the machinery.
In terms of making money, our aim is to produce the asphalt in the US. The average cost of production for
a square foot of virgin asphalt is $0.75 to $2.00. Whilst the price set for asphalt on average is $5.00. Since
our business would use recycled asphalt with nanoclays and nano-silicas included, this decreases the
average cost of production as well. Whilst the price being set would be increased due to the new
developments of nanotechnology being used, as well as its positive impact on the environment.
Governments would be willing to choose something more environmentally friendly, and would likely
choose to spend more money on our product. Thus allowing us to raise the price of asphalt being sold for
upto $7.00-$10.00 for a square foot, thus increasing profit.

Competitors in the Market :

Ammann is ranked number 1 in the world for asphalt production. It produces asphalt for many countries
such as China & India. They are one of our biggest competitors as they produce asphalt for the 2nd most
consuming asphalt country worldwide.
Ammann produces asphalt for construction of roads, while our business produces asphalt with
nanoparticles to cool the temperatures of countries with high temperatures to develop agricultural
growth. A similar factor in both of our companies is that we both recycle the materials that have not been
used or material wastes to decrease the CO2 emissions which is helpful for reducing the leading cause of
global warming.