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.
- Phase Initial at 400 TPD takes ~36% of the ~1,100 TPD addressable stream; the CSA scales to 1,200 TPD without renegotiating terms.
- One CSA, no election: the County pays $100/ton and receives a Circular Royalty™ from 13 months after the first fee payment.
- Three provisional site candidates in the Fort Pierce corridor; zero County capital at any phase.
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
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.
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.
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 Element | St. Lucie County (Counterparty) | Carbotura (SPV) |
|---|---|---|
| Delivers | Feedstock (MSW + biosolids, 400–1,200 TPD per phase) | Receives feedstock as manufacturing input |
| Receives | Circular Royalty™ from Month 13 + Avoided Disposal | Contractual access to 30-year feedstock stream |
| Pays | Beneficiation Fee (TMC Fee): $100/ton, 2.5%/yr escalator | Circular Royalty™: 120% of the current-year Beneficiation Fee, +1pp/yr |
| Term | 30 years · Perpetual continuation unless 24-month Non-Renewal Notice served | |
| Performance Guarantee | 18-month Parent Performance Guarantee from Carbotura parent entity | |
| NAICS Classification | Manufacturing (Sector 31–33) — not solid waste (Sector 562) | |
| Accounting | US GAAP / GASB | |
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.
Circular Royalty™
- 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
- 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
Deployment Configuration
Phase Initial at 400 TPD · COD T₀ + 24 months · Standard Carbotura deployment schedule.
| Milestone | Timing | Details |
|---|---|---|
| CSA Execution | T₀ | Subject to RPT confirmation and final term sheet |
| Phase Initial construction start | T₀ + 6 months | 400 TPD · 4 modules · Site candidate confirmed |
| Phase Initial COD | T₀ + 24 months | First feedstock delivery; Beneficiation Fee commences |
| First Circular Royalty™ payment | T₀ + 37 months | 13 months after Phase Initial COD · Rolling royalty commences |
| Phase Medium full operations | T₀ + 42 months | 800 TPD · Biosolids fraction added |
| Phase Expanded full operations | T₀ + 60 months | 1,200 TPD · C&D non-hazardous fraction added |
| CSA Term End (30 yr) | T₀ + ~30 years | Perpetual 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.
Site candidate map requires a Google Maps API key.
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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.
Year 1: $100 × 146,000 = $14,600,000 · Year 2: $102.50 × 146,000 = $14,965,000
| Parameter | Value | Notes |
|---|---|---|
| Base rate | $100.00 / ton | Locked — Architect specification |
| Annual escalator | 2.5% per year | Applies from Year 2 onward |
| Phase Initial annual obligation (Year 1) | $14,600,000 | 146,000 TPY × $100/ton |
| Phase Initial annual obligation (Year 2) | $14,965,000 | 146,000 × $102.50 |
| FWDC baseline (gate rate) | $79.00 / ton VERIFIED | Current Class 1 disposal gate rate, effective Feb 2025 |
| Beneficiation Fee vs FWDC | +$21.00 / ton Year 1 | Fee replaces and exceeds current disposal cost |
| Payment frequency | Monthly in arrears | Standard 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.
RoyaltyRate = 120% Year 1 · escalates +1 percentage point per year thereafter
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) | $100.00 | Pre-royalty | $14.60M | $0 (13-month lag) | ($14.60M) |
| 2 ← Royalty commences | $102.50 | 120% | $14.97M | $17.52M | +$2.55M |
| 3 | $105.06 | 121% | $15.34M | $18.11M | +$2.77M |
| 4 | $107.69 | 122% | $15.72M | $18.72M | +$3.00M |
| 5 | $110.38 | 123% | $16.12M | $19.34M | +$3.22M |
| 10 | $124.89 | 128% | $18.23M | $22.77M | +$4.54M |
| 20 | $159.86 | 138% | $23.34M | $31.43M | +$8.09M |
| 30 | $204.64 | 148% | $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 = $11.53M/yr) shown separately. Net/ton column removed per Separate Transaction Principle. ESTIMATED
§4.1
Under the CSA, the County commits feedstock volume and site access at execution. This transforms the balance sheet character of the feedstock from an open-ended disposal liability to a contractual obligation — reportable under US GAAP / GASB public authority accounting standards, with the GASB 18 post-closure care liability extinguished where the Exogenesis™ Royalty applies.
§4.1 Exogenesis™ Royalty — Available under the CSA
The St. Lucie County Sanitary Landfill (FDEP Permit 0126814-017-SO) qualifies as a candidate for the Exogenesis™ Royalty — a structured dual-stream payment for legacy landfill material remediation, appended to the primary CSA as a separate agreement. The Exogenesis™ Royalty: (1) creates a second royalty stream from legacy material that is currently an environmental and financial liability; (2) does not alter primary CSA Beneficiation Fee or Circular Royalty™ terms; (3) is conditional on Waste Characterization Study confirming qualifying material; (4) is available under the CSA. Subject to Waste Characterization Study.
State B Values — Locked
EIR Input Block: all State B values are set here. The EIR document draws exclusively from this block. No State B values may be introduced in the EIR that are not present below.
EIR Input Block — Expand to view all locked State B values
| Field | State A (Current) | State B (With Carbotura) | Status |
|---|---|---|---|
| NAICS Classification | Solid waste (562213 / 562219) | Manufacturing (325180 / 325998 / 327992 / 331110 / 331314 / 331492) | LOCKED |
| Primary disposal pathway | St. Lucie County Sanitary Landfill | ACM facility (Phase Initial 400 TPD) | LOCKED |
| FWDC ($/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 pressure | Cell V expansion required; accelerated filling | 400 TPD diverted; Cell V capacity extended | ESTIMATED |
| 30-year gross royalty | $0 | ~$874M (Phase Initial) ESTIMATED | ESTIMATED |
| Direct employment (Phase Initial) | N/A | ~100 FTE ESTIMATED | ESTIMATED |
| CSA structure | N/A | the CSA | LOCKED |
| Exogenesis™ Royalty eligibility | N/A | St. Lucie County Sanitary Landfill — candidate (subject to Waste Characterization Study confirmation) | ESTIMATED |
Selective Glossary
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.