Circular Supply Proposal · DOC 03 OF 06 · St. Lucie County, Florida · CSA Proposal

What this document is

The commercial structure of one Circular Supply Agreement for St. Lucie County — configurations, the Beneficiation Fee, the Circular Royalty™, site candidates, and the EIR input block.

Three things this document says
  1. Phase Initial at 400 TPD takes ~36% of the ~1,100 TPD addressable stream; the CSA scales to 1,200 TPD without renegotiating terms.
  2. One CSA, no election: the County pays $100/ton and receives a Circular Royalty™ from 13 months after the first fee payment.
  3. Three provisional site candidates in the Fort Pierce corridor; zero County capital at any phase.
Carbotura · Circular Advantage Program · Circular Supply Proposal

St. Lucie County, Florida
Circular Supply Proposal

St. Lucie County's feedstock waste stream inverts from an open-ended disposal liability to a 30-year royalty return instrument

Document: Stage 1 Circular Supply Proposal Prepared for: St. Lucie County, Florida Date: May 2026 Basis: FWDC $79/ton VERIFIED (stlucieco.gov, Feb 2025); fee and royalty ESTIMATED on Carbotura standard parameters; registry LOCKED WITH WARNINGS May 2026

Programme Configuration Options

Three deployment configurations under the CSA. Phase Initial at 400 TPD is the entry point — the CSA scales to Phase Expanded without renegotiating commercial terms.

Phase Medium
800 TPD
292,000 TPY · 8 modules
Year 1 Beneficiation Fee$29.20M
Year 2 Circular Royalty™$35.04M
Year 2 Net Surplus+$5.11M
30-Year Gross Royalty~$1.5B
Direct FTE~200
Full Ops from T₀+42 months
Phase Expanded
1,200 TPD
438,000 TPY · 12 modules
Year 1 Beneficiation Fee$43.80M
Year 2 Circular Royalty™$52.56M
Year 2 Net Surplus+$7.67M
30-Year Gross Royalty~$2.62B
Direct FTE~300
Full Ops from T₀+60 months

All financial figures are Carbotura planning-basis estimates. Phase expansion does not require renegotiation of commercial terms — the CSA structure accommodates scaling. 30-Year Gross Royalty figures are ESTIMATED. ESTIMATED

Transaction Overview

The Carbotura CSA converts St. Lucie County's existing disposal cost into a structured royalty return stream over a 30-year programme term.

§1.2 Regulatory Predicate Transition (RPT) (RPT) — Required Before Execution

The ACM facility is classified under manufacturing NAICS codes (325180, 325998, 327992, 331110, 331314, 331492). Both parties commit to the RPT pathway where a jurisdiction classifies the ACM facility under solid waste NAICS codes (562212, 562213, 562219, 562920). This Regulatory Predicate Transition (RPT) must be confirmed and documented prior to commercial terms execution.

Transaction ElementSt. Lucie County (Counterparty)Carbotura (SPV)
DeliversFeedstock (MSW + biosolids, 400–1,200 TPD per phase)Receives feedstock as manufacturing input
ReceivesCircular Royalty™ from Month 13 + Avoided DisposalContractual access to 30-year feedstock stream
PaysBeneficiation Fee (TMC Fee): $100/ton, 2.5%/yr escalatorCircular Royalty™: 120% of the current-year Beneficiation Fee, +1pp/yr
Term30 years · Perpetual continuation unless 24-month Non-Renewal Notice served
Performance Guarantee18-month Parent Performance Guarantee from Carbotura parent entity
NAICS ClassificationManufacturing (Sector 31–33) — not solid waste (Sector 562)
AccountingUS GAAP / GASB
The Separate Transaction Principle

The Beneficiation Fee (TMC Fee) and the Circular Royalty™ are independent transactions. They are never netted in any table column, chart, or sentence. Each appears as a separate line item throughout this document. Gross cost displacement is quantified separately from Circular Royalty™ cash flow.

CSA Structure

St. Lucie County enters one Circular Supply Agreement (CSA): a Beneficiation Fee paid by the County and a Circular Royalty™ paid by Carbotura. There is no election; the structure is the same for every Feedstock Provider.

Standard CSA
Circular Royalty™
Standard CSA structure. Beneficiation Fee replaces disposal spending; royalty begins Month 13.
  • Beneficiation Fee: $100/ton, 2.5%/yr escalator
  • Circular Royalty™: 120% of the current-year Beneficiation Fee, +1pp/yr
  • Month 13 royalty commencement
  • 30-year term, perpetual continuation
  • 18-month Parent Performance Guarantee
  • RPT confirmation required
  • US GAAP / GASB

Feedstock commitment at CSA execution transforms the balance sheet character from an open-ended disposal liability to a contractual obligation under GASB 18.
  • All the CSA features included
  • Three defined assets — Feedstock, Deeded Land, and Tax Abatement — contributed at CSA execution
  • Balance sheet character: disposal liability → contractual contribution under GASB 18
  • Royalty structured as
  • Full institutional asset base treatment
  • Optimised for GASB/US GAAP county reporting
Bonus Feature · Available under the CSA
Exogenesis™ Royalty · St. Lucie County Sanitary Landfill
The St. Lucie County Sanitary Landfill (Permit 0126814-017-SO) has been identified as a qualifying candidate for the Exogenesis™ Royalty — a structured dual-stream payment for legacy landfill material remediation, structured as a separate agreement appended to the primary CSA. The Exogenesis™ Royalty does not alter primary CSA terms and is conditional on Waste Characterization Study confirmation. Available under the CSA. Subject to Waste Characterization Study.

Deployment Configuration

Phase Initial at 400 TPD · COD T₀ + 24 months · Standard Carbotura deployment schedule.

MilestoneTimingDetails
CSA ExecutionT₀Subject to RPT confirmation and final term sheet
Phase Initial construction startT₀ + 6 months400 TPD · 4 modules · Site candidate confirmed
Phase Initial CODT₀ + 24 monthsFirst feedstock delivery; Beneficiation Fee commences
First Circular Royalty™ paymentT₀ + 37 months13 months after Phase Initial COD · Rolling royalty commences
Phase Medium full operationsT₀ + 42 months800 TPD · Biosolids fraction added
Phase Expanded full operationsT₀ + 60 months1,200 TPD · C&D non-hazardous fraction added
CSA Term End (30 yr)T₀ + ~30 yearsPerpetual continuation unless 24-month Non-Renewal Notice served

Standard Carbotura deployment schedule. All milestones are from T₀ = CSA execution date. ESTIMATED

Site Candidate Analysis

Three provisional candidate zones for ACM facility siting in St. Lucie County. Final site selection subject to site-specific assessment and county planning approval.

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ACM Site Candidates · St. Lucie County FL
P1Industrial Zone — Southern Fort Pierce Corridor
Location: I-95 / Glades Cut-Off Road industrial area, near existing landfill
Acreage: 20–40 acres available PROVISIONAL
Zoning: Industrial (IL/IH)
Land Authority: St. Lucie County Planning & Development
Advantage: Proximity to primary feedstock source (landfill gate); I-95 trucking access; established industrial zoning
Driving to landfill: ~3 min · Driving to Fort Pierce WWTP: ~15 min
P2Treasure Coast Research Park (IRSC)
Location: Indian River State College industrial/research corridor, Fort Pierce
Acreage: 15–30 acres PROVISIONAL
Zoning: Industrial / Research
Land Authority: Indian River State College / St. Lucie County
Advantage: Established infrastructure corridor; workforce proximity; co-location with research park
Driving to landfill: ~12 min · Driving to Fort Pierce WWTP: ~10 min
P3Port of Fort Pierce Industrial Area
Location: Marine industrial zone, Fort Pierce waterfront
Acreage: 10–20 acres PROVISIONAL
Zoning: Marine Industrial / Port
Land Authority: St. Lucie County / Port of Fort Pierce
Advantage: Heavy industrial designation; port logistics capability; existing utilities infrastructure
Driving to FPUA WWTP: ~5 min · Driving to landfill: ~18 min

All site candidates are PROVISIONAL. Final site selection requires site assessment, title review, environmental due diligence, and St. Lucie County planning approval. Coordinates and acreage estimates are for planning purposes only.

Beneficiation Fee (TMC Fee)

The Beneficiation Fee is the annual commercial obligation paid by St. Lucie County to Carbotura for Advanced Circular Manufacturing of the County's feedstock stream.

Beneficiation Fee — Annual Obligation
Annual Fee(n) = Base × TPY × (1.025)ⁿ⁻¹
Base = $100.00/ton · TPY = 146,000 (Phase Initial) · n = contract year
Year 1: $100 × 146,000 = $14,600,000 · Year 2: $102.50 × 146,000 = $14,965,000
ParameterValueNotes
Base rate$100.00 / tonLocked — Architect specification
Annual escalator2.5% per yearApplies from Year 2 onward
Phase Initial annual obligation (Year 1)$14,600,000146,000 TPY × $100/ton
Phase Initial annual obligation (Year 2)$14,965,000146,000 × $102.50
FWDC baseline (gate rate)$79.00 / ton VERIFIEDCurrent Class 1 disposal gate rate, effective Feb 2025
Beneficiation Fee vs FWDC+$21.00 / ton Year 1Fee replaces and exceeds current disposal cost
Payment frequencyMonthly in arrearsStandard CSA payment schedule

Gross cost displacement ($11.53M/yr at 400 TPD × $79/ton FWDC) is shown separately in the fiscal analysis below per the Separate Transaction Principle. It is not netted against the Beneficiation Fee.

Circular Royalty™

The Circular Royalty™ is the royalty return paid by Carbotura to St. Lucie County beginning 13 months after the first Beneficiation Fee payment.

Circular Royalty™ — Authoritative Formula
Royalty(m+13) = BeneficiationFee(m) × RoyaltyRate(m)
m = month of Beneficiation Fee payment · m+13 = month of corresponding Royalty payment
RoyaltyRate = 120% Year 1 · escalates +1 percentage point per year thereafter
Three Required Principles — Circular Royalty™

Gross cost displacement is quantified separately from Circular Royalty™ cash flow. Full net fiscal position reflects both.

At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee on a per-ton basis.

Circular Royalty™ payments begin 13 months after corresponding Beneficiation Fee payments and ramp to full run-rate on a rolling basis.

§4.0 Year-by-Year Fiscal Table — Phase Initial 400 TPD / 146,000 TPY

Year Fee/ton Royalty Rate Beneficiation Fee (Gross) Circular Royalty™ (Gross) Royalty Surplus
1 (Pre-Royalty)$100.00Pre-royalty$14.60M$0 (13-month lag)($14.60M)
2 ← Royalty commences$102.50120%$14.97M$17.52M+$2.55M
3$105.06121%$15.34M$18.11M+$2.77M
4$107.69122%$15.72M$18.72M+$3.00M
5$110.38123%$16.12M$19.34M+$3.22M
10$124.89128%$18.23M$22.77M+$4.54M
20$159.86138%$23.34M$31.43M+$8.09M
30$204.64148%$29.88M$43.14M+$13.26M

Royalty Surplus = Circular Royalty™ Year N − Beneficiation Fee Year N (not the gross net position; see note below). Fee and Royalty shown as gross independent items per the Separate Transaction Principle — no netting. Avoided Disposal ($79/ton × 146,000 TPY = $11.53M/yr) shown separately. Net/ton column removed per Separate Transaction Principle. ESTIMATED

Gross Fiscal Components — Phase Initial 400 TPD · Years 1–10
Avoided Disposal (amber) and Circular Royalty™ (emerald) shown gross against Beneficiation Fee (red). No net position line. Royalty commences Year 2 at 120% of the current-year Beneficiation Fee.

§4.1

Enhancement

Under the CSA, the County commits feedstock volume and site access at execution. This transforms the balance sheet character of the feedstock from an open-ended disposal liability to a contractual obligation — reportable under US GAAP / GASB public authority accounting standards, with the GASB 18 post-closure care liability extinguished where the Exogenesis™ Royalty applies.

§4.1 Exogenesis™ Royalty — Available under the CSA

Exogenesis™ Royalty — Bonus Feature

The St. Lucie County Sanitary Landfill (FDEP Permit 0126814-017-SO) qualifies as a candidate for the Exogenesis™ Royalty — a structured dual-stream payment for legacy landfill material remediation, appended to the primary CSA as a separate agreement. The Exogenesis™ Royalty: (1) creates a second royalty stream from legacy material that is currently an environmental and financial liability; (2) does not alter primary CSA Beneficiation Fee or Circular Royalty™ terms; (3) is conditional on Waste Characterization Study confirming qualifying material; (4) is available under the CSA. Subject to Waste Characterization Study.

State B Values — Locked

EIR Input Block: all State B values are set here. The EIR document draws exclusively from this block. No State B values may be introduced in the EIR that are not present below.

EIR Input Block — Expand to view all locked State B values
FieldState A (Current)State B (With Carbotura)Status
NAICS ClassificationSolid waste (562213 / 562219)Manufacturing (325180 / 325998 / 327992 / 331110 / 331314 / 331492)LOCKED
Primary disposal pathwaySt. Lucie County Sanitary LandfillACM facility (Phase Initial 400 TPD)LOCKED
FWDC ($/ton)$79.00/ton (Class 1 gate rate)$100.00/ton (Beneficiation Fee, Year 1)LOCKED
Annual disposal cost (Phase Initial)$11.53M ($79 × 146,000)$14.60M (Year 1 fee)LOCKED
Royalty income (Year 2+)$0$17.52M Year 2 (120% × $14.60M)LOCKED
Landfill capacity pressureCell V expansion required; accelerated filling400 TPD diverted; Cell V capacity extendedESTIMATED
30-year gross royalty$0~$874M (Phase Initial) ESTIMATEDESTIMATED
Direct employment (Phase Initial)N/A~100 FTE ESTIMATEDESTIMATED
CSA structureN/Athe CSALOCKED
Exogenesis™ Royalty eligibilityN/ASt. Lucie County Sanitary Landfill — candidate (subject to Waste Characterization Study confirmation)ESTIMATED

Selective Glossary

ACM — Advanced Circular Manufacturing
Carbotura's MCR-based manufacturing process. Converts residual materials into synthetic graphite, graphene compounds, and recovered minerals. Non-combustion, anoxic.
Beneficiation Fee (TMC Fee)
Annual fee paid by St. Lucie County to Carbotura for ACM of the County's feedstock. $100/ton base, 2.5%/yr escalator. Separate transaction from Circular Royalty™.
Circular Royalty™
Royalty paid by Carbotura to the County. 120% of that year's Beneficiation Fee base, +1pp/yr. Begins Month 13 after first Beneficiation Fee payment.
RPT — Regulatory Predicate Transition (RPT)
Requirement that the ACM facility be classified under manufacturing NAICS codes. Engagement-terminating if classified under solid waste codes.
CSA — Circular Supply Agreement
The 30-year BOO agreement between Carbotura and the County counterparty. Includes Beneficiation Fee, Circular Royalty™, and performance guarantee.
FWDC — Feedstock Waste Disposal Cost
Current per-ton cost the County pays to dispose of MSW. $79/ton verified gate rate (Class 1, Feb 2025). Baseline for avoided disposal calculation.
Exogenesis™ Royalty
Optional dual-stream royalty for legacy landfill material remediation. Separate from primary CSA; requires Waste Characterization Study. Available under the CSA.
Feedstock commitment —
Three defined assets — Feedstock, Deeded Land, and Tax Abatement — contributed at CSA execution. Balance sheet treatment transforms from disposal liability to contractual contribution under GASB 18.
Separate Transaction Principle
The Beneficiation Fee and Circular Royalty™ are independent transactions — never netted in any table, chart, or sentence. Each shown as a separate gross line item.

Data Basis

All financial figures are Carbotura planning-basis estimates unless marked VERIFIED. VERIFIED figures sourced from stlucieco.gov (waste fees page, Feb 1 2025); wflx.com/2025/03/12 (landfill capacity and rate trajectory); wptv.com/news/treasure-coast (landfill capacity 2023). Phase targets (400/800/1,200 TPD) and TMC Fee ($100/ton) are Architect-specified. All figures denominated in USD. Accounting standard: US GAAP / GASB. Verification date: May 2026. Site candidate coordinates and acreage are PROVISIONAL — subject to site-specific assessment.

Was this circular supply proposal useful?
Indicative reference only — not an offer. All financial figures are Carbotura planning-basis estimates unless marked VERIFIED. The $79/ton FWDC is verified from stlucieco.gov (Class 1 gate rate, effective 1 February 2025). The Beneficiation Fee of $100/ton and all royalty figures are ESTIMATED on Carbotura standard parameters and are subject to Term Sheet confirmation. Employment figures are scaled from standard manufacturing parameters. Exogenesis™ candidacy is subject to feedstock characterisation. Pricing is available under a Circular Supply Agreement (CSA) or a Circular Materials Offtake Agreement (CMOA) — contact Carbotura.