The Problem and a Solution

Social Impact/Problem
Although most people in the US have little difficulty in finding clean drinking water, citizens of other countries struggle daily with this problem. Brent Haddad, a professor performing environmental studies at UC Santa Cruz, reported that every year about 1.3 million children six years old or younger die from drinking infected water. Haddad stated that indeed one of the biggest factors leading to higher mortality rates in third world countries is contaminated water. When death does not occur, drinking infected water still may cause great pain. More than 2 billion people suffer from diseases attributed to drinking contaminated water.[i]
Arsenic is a toxic chemical found naturally in earth’s water deposits. Even ingestion of small amounts of arsenic can cause death or other adverse health effects such as nausea, vomiting, partial paralysis, reproductive damage, and even cancer in many of the body’s vital organs.[ii] Water supplies in many third world countries contain dangerous levels of arsenic. Most water supplies in Bangledesh have arsenic levels of over 10 parts per billion (ppb), higher than the maximum allowable level in the US. Some supplies have over 1,000 ppb.

The US is not immune from the problem of arsenic-contaminated water supplies. Most of the western US and even some large population centers in the east draw from reserves of water with arsenic concentrations of around 10 ppb. In the past this was not a major concern to suppliers since the EPA only required arsenic levels in water to be below 50 ppb. However, in 2006, the EPA lowered the maximum allowable level of arsenic from 50 ppb to 10 ppb. This will require water purification facilities to pay more attention to arsenic levels in their source water. Further, the EPA has clearly stated that its end goal is to reduce arsenic levels in drinking water to 0 ppb.[iii] This suggests that future reduction in maximum allowable arsenic levels is possible.

Product/Viability

Chemical engineers researching the field of nano-technology have developed and secured patents for a resin called N-CAS, or Nano-Composite Arsenic Sorbent, to remove arsenic from water. N-CAS has the following characteristics:

· High surface area, allowing more reaction sites and therefore quicker arsenic removal
· Highly effective at binding and removing arsenic from water
· Removes relatively large quantities of arsenic
· Remains effective even when the arsenic is bound to the resin
· Superior properties (i.e. durable, low cost, etc.)

Research has shown that competing materials do not perform well in one or more of the areas listed above.

There are at least two possible methods for distributing N-CAS. Large, industrial-sized filtration systems can be produced that are designed to remove arsenic from very large quantities of water. These would be best used by municipalities. Another method is to develop smaller filtration systems for personal use in homes and businesses. Further market analysis will be conducted to understand the market size and competing materials/filtration systems. This will help determine the feasibility and the best method for distributing N-CAS.

Business/Social Structure

The engineers are interested in licensing the production process so that N-CAS may be produced and distributed by a commercial entity. ArseneX, a commercial entity, will begin execution of the combined business/social venture to distribute N-CAS in the US. Approximately $1M in initial capital will be needed to build a small plant in southern Idaho and assemble an operation team to oversee N-CAS production. Further analysis will determine whether the plant will produce “ready-to-use” filtration systems or the resin only for use in systems produce elsewhere.

The target market in the US will be federal government agencies, with the end goal to land a government contract as a nation-wide supplier. ArseneX will also target municipal water purification facilities. Within 5 years of plant start-up, it is anticipated that ArseneX will have acquired a substantial customer base such that it will be operating at a profit, and will consider construction of other plants geographically closer to existing customers.

At this point, with a firm foundation in the US market, ArseneX will expand distribution and plant operation to places such as Bangladesh, India, and Africa that are in desperate need of clean drinking water. The operation in these countries will be on a not-for-profit basis. ArseneX will pursue partnership with other companies to produce filtration systems to remove other harmful substances such as lead, parasites, and bacteria that cause disease and death.

Conclusion

There is a great potential to do good on a global scale with this business model. ArseneX can become a viable, competitive, profitable supplier of water filtration systems in the US and in other strong economies, while simultaneously taking the lead in social relief efforts targeting struggling countries with a dire need for clean drinking water.
[i] “Thinking small could quench Third World’s thirst for reliable, clean water, prof says.” Jennifer McNulty. UC Santa Cruz Currents Online. May 3, 2004. (http://currents.ucsc.edu/03-04/05-03/water.html)
[ii] EPA Online. (http://www.epa.gov/safewater/arsenic/pdfs/fs_arsenic_justthefactsforconsumers.pdf)
[iii] EPA Online. (http://www.epa.gov/safewater/arsenic/pdfs/fs_arsenic_justthefactsforconsumers.pdf)