Self-Healing Bacterial ConcreteTrevor Jones - Ray Lewis - Luke Van de Vate

Engineering ManagementApril 30, 2015

The Crisis: Declining Infrastructure

• The Source of Decline

• Aging concrete cracks – water and chemicals corrode steel skeleton.

• Safety and Economics

• American Society of Civil Engineers• D+ in infrastructure.

• C+ on the condition of bridges.

• Estimated $20.5B/yr for repair.

• Necessary Solution Qualities

• Financially and Structurally Sustainable.

The Solution: Self-Healing Bacterial Concrete

• What is S.H.B.C?• A new concrete technology that

autonomously repairs cracks.

• How does it work?• Alkaliphilic bacteria added to

concrete matrix.

• Bacteria react to the water and metabolize crystals, which close the crack and protect the steel within.

• Does it solve the crisis?

Lafarge: A host for Self-Healing Concrete

• World’s third largest construction materials company.

• Strong commitment to research and development.

• Substantial market presence.• 2nd largest in US (+10%).

• Gary Parker • Carter Concrete superintendent.

• Lafarge in the habit of acquisitions.

A Target Market: The Bridge Construction Industry

• Why bridge construction?

• Directly impacted by infrastructure crisis.

• Government funding for bridge projects.

• How will Lafarge capture this market?

• Demonstrate S.H.B.C.’s capabilities.• Structural, financial, and

environmental.• Implement prototype projects. Sustainability/

Capabilities

Bringing the Product to Market: Challenges• Technology• Dependence on complements.

• Limited knowledge of bacteria.

• Chris Hawkins• Quality Control Manager at Nashville

Ready Mix.

• Storage and transportation requirements.

• Market• Distrust of a new concrete.

• Service intensity.

• Dr. Robert Stammer• Vanderbilt University Associate Professor.

• Short term vs. long term solutions.

Bringing the Product to Market: Overcoming the Challenges

Challenge Strategy

Dependence on new Complements

Receive bacteria from Carolina Biological Supply

Bacteria Complexities

Experience from Carolina Biological Supply

Transp./Storage Requirements

Experience from Carolina Biological Supply

Service Intensity Improve customer service and quality control services with help from C.B.S.

Cost and Product Attractiveness

Demonstrate the capabilities of S.H.B.C with small projects and prototypes.

Financial Outlook

Building on the Financial Outlook: Option Space

• Lafarge’s Options.• 1. Licensing or sale of the

intellectual property.

• 2. Implementation of the concrete in small bridge repair and construction.

• 3. Full-scale implementation on large highway bridges.

*$100,000 = $100,000,000

A Complete Strategy: The Technology Roadmap• Early Development Strategy (2015-2019)

• Market Capturing Plan – Importance of sustainability advertising.

• Technology Development Plan – R&D, patent portfolio, prototyping.

• Company Development Plan – Acquisition and integration of Carolina Biological Supply.

Green: Full CommitmentYellow: Moderate CommitmentRed: In Long Range Plan

A Complete Strategy: The Technology Roadmap• Core Strategy (2020-2024)

• Market Capturing Plan – Structural capabilities of S.H.B.C advertising.

• Technology Development Plan – Small bridge projects and bridge repair to full implementation.

• Company Development Plan – Adapt to new technology in manufacturing and services.

Green: Full CommitmentYellow: Moderate CommitmentRed: In Long Range Plan

A Complete Strategy: The Technology Roadmap• Post Implementation Strategy (2025+)

• Market Capturing Plan – Advertise against competitors, higher quality, sustainability, etc..

• Technology Development Plan – Full product implementation and R&D for improvements.

• Company Development Plan – Maintain current level of operations and allocate more to R&D.

Green: Full CommitmentYellow: Moderate CommitmentRed: In Long Range Plan

Conclusion of the S.H.B.C. Strategy

• Solution to the infrastructure crisis.

• Practical and Operationally Achievable.

• Marketable and profitable.

• Diminishes life-cycle costs.

• Is profitable for the consumer.

Acknowledgements

• John Bers – Associate Professor at Vanderbilt University

• Chris Hawkins – Quality Control Manager at Nashville Ready Mix

• Larry Marchman – Project Manager at Carter Concrete Structures

• Gary Parker – Superintendent at Carter Concrete Structures

• Robert Stammer - Ph.D., Civil and Environmental Engineering