A programme-level explainer of the 30-year Circular Supply Agreement: the CSA plus the Exogenesis™ add-on, the fiscal timeline, and the Regulatory Predicate Transition off waste-domain statutes onto manufacturing law.
The programme is built on three independent, gross transactions — never netted against each other. Understanding these three is understanding the CSA.
The community delivers its residual material stream to Carbotura under a 30-year Circular Supply Agreement. Same collection, same haulers, new destination.
Under the CSA: the community pays a per-ton fee to Carbotura under the manufacturing arrangement — the Beneficiation Fee (TMC Fee). Similar in role to today's tipping fee, except the material becomes a product.
Beginning 13 months after corresponding Beneficiation Fee payment, Carbotura pays the community a growing per-ton royalty from product revenues. Designed to exceed the fee at steady state.
State A is the current disposal-dependent system. State B is deployed Advanced Circular Manufacturing. The delta is quantifiable across every dimension.
Site permitting, RPT (Regulatory Predicate Transition) engagement, module fabrication + install. Community bears no capital cost — Carbotura funds 100% of CapEx under Build-Own-Operate (BOO).
Zero community CapExFacility operational. Community pays Beneficiation Fee per ton under the CSA. Circular Royalty™ has not yet begun — rolls in 13 months after the first fee payment.
Beneficiation Fee paid · Royalty $0Circular Royalty™ starts at 120% of current-year Beneficiation Fee per ton.
Royalty rate escalates +1 percentage point per year. Beneficiation Fee escalates 2.5%/yr. Both grow, and the spread widens each year in the community's favor.
Year 30 royalty rate: 148%+ of BFₙCSA continues past Year 30 unless either party serves Non-Renewal Notice (24-month notice period, earliest exit Year 30). No renegotiation required — the terms carry.
Non-Renewal Notice window: Year 28+Every community engages Carbotura through the CSA. Exogenesis™ is a bonus royalty stream available alongside the CSA, subject to a qualifying legacy landfill.
The CSA — a Beneficiation Fee paid by the community and a Circular Royalty™ paid by Carbotura — is Carbotura's sole commercial structure for every community, new and existing. Earlier zero-fee structures are retired and are not offerable.
Community pays Beneficiation Fee per ton; receives Circular Royalty™ from 13 months after corresponding Beneficiation Fee payment. Two independent transactions.
A separate structured royalty for legacy landfill remediation. Extracts and processes buried material into manufactured products; extinguishes GASB 18 post-closure care liability at CSA execution.
Advanced Circular Manufacturing does not fit within the waste domain. Microwave Catalytic Reforming operates in an anoxic, oxygen-free, sub-atmospheric environment — mechanistically incompatible with combustion or biological degradation. ACM operates under manufacturing law, not waste law.
100% elemental recycling of the municipal material stream requires the Regulatory Predicate Transition — also called the dewaste pathway. This is the coordinated regulatory shift from legacy disposal-predicate statutes onto manufacturing-predicate classifications. Both parties commit to the RPT pathway — Carbotura brings process-classification evidence + regulatory engagement expertise; the community brings standing to engage the local regulator + political mandate for the transition. Endpoint is categorical: manufacturing classification across all permitting.
Manufacturing NAICS 6-code set (US): 325180 · 325998 · 327992 · 331110 · 331314 · 331492. International equivalents: ISIC Rev.4 20–25 · UN CPC 89. Country-specific pathways per jurisdiction.
The Waste Study locks the feedstock baseline, the Fully-Loaded Cost of Disposal, and the site + regulatory pathway. It's the entry instrument to the full Community Intelligence Package and formal CSA negotiation.