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Advanced Circular Manufacturing · Programme Brief · DOC 01 OF 06

Prosiect Gwyrdd runs to 2040 — Newport needs a successor pathway before the contract expires, not after Mae Prosiect Gwyrdd yn rhedeg tan 2040 — mae angen llwybr olynol ar Gasnewydd cyn i'r contract ddod i ben, nid ar ôl hynny

A structured overview of the Carbotura Circular Supply Agreement for Newport City Council, Wales — Phase Initial 65 TPD through Phase Expanded 130 TPD Trosolwg strwythurol o Gytundeb Cyflenwi Cylchol Carbotura ar gyfer Cyngor Dinas Casnewydd, Cymru

65 TPD Phase Initial 130 TPD Phase Expanded Prosiect Gwyrdd · Viridor · 2040–41 No Confirmed Successor Infrastructure £100/tonne Planning Basis Docks Way Landfill · Exogenesis™ Candidate
Carbotura Advanced Circular Manufacturing facility — illustrative configuration
Carbotura ACM Facility · Illustrative configuration Cyfleuster ACM Carbotura · Cyfluniad darluniadol
Programme Brief · DOC 04 OF 06

What this document isBeth yw’r ddogfen hon

A single-page summary: what Newport City Council is being asked to authorise, what it receives, and the deadline that governs the timetable.Y man cychwyn ar gyfer dogfennau’r rhaglen.

Three things this document saysTri pheth y mae’r ddogfen hon yn ei ddweud
  1. Newport City Council is at a decision point: the deployment timetable runs from execution, so the decision date sets the commissioning date.Cyngor Dinas Casnewydd: mae’r amserlen yn dechrau o’r dyddiad llofnodi, felly’r dyddiad penderfynu sy’n gosod y dyddiad comisiynu.
  2. Advanced Circular Manufacturing converts the residual stream into products under one agreement, with no counterparty capital committed.Mae Gweithgynhyrchu Cylchol Uwch yn trosi’r ffrwd weddilliol yn gynnyrch o dan un cytundeb, heb gyfalaf gan y cyngor.
  3. The Beneficiation Fee and the Circular Royalty™ are independent transactions, reported separately and never netted against each other.Mae’r Ffi Fuddiannu a’r Royalty Cylchol yn drafodion annibynnol: cânt eu dangos ar wahân ac ni chânt eu net-io byth.
Looking for something else?Chwilio am rywbeth arall?
Contract HorizonGorwel Contract

Prosiect Gwyrdd expires ~2040–41 — Newport has no confirmed successor for 61 TPD of contracted residual MSW Mae Prosiect Gwyrdd yn dod i ben ~2040–41 — Nid oes gan Gasnewydd olynydd cadarnhaol ar gyfer 61 TPD o fwyd-stoc gwastraff gweddilliol

Procurement WindowFfenestr Caffael

The Prosiect Gwyrdd Joint Committee Agreement — signed December 2013 with Viridor Waste Management Limited — commits approximately 61 TPD of Newport's contracted residual MSW to the Cardiff Energy Recovery Facility through approximately 2040–41. When that contract expires, Newport has no confirmed successor infrastructure for that volume. Working backward from 2040, the latest Term Sheet phase verification can be authorised and still have Phase Expanded ACM infrastructure operational before the contract horizon is approximately 2032–33. The recommended authorisation date is 2026. Every year of delay compresses that buffer and cannot be recovered. Mae Cytundeb Cyd-bwyllgor Prosiect Gwyrdd — a lofnodwyd ym Rhagfyr 2013 gyda Viridor Waste Management Limited — yn ymrwymo tua 61 TPD o fwyd-stoc gwastraff gweddilliol Casnewydd i Gyfleuster Adfer Ynni Caerdydd hyd at tua 2040–41. Pan fydd y contract hwnnw'n dod i ben, nid oes gan Gasnewydd seilwaith olynol cadarnhaol ar gyfer y cyfaint hwnnw.

Newport City Council generates approximately ~130 TPD of manufacturing feedstock annually. Of that, approximately 61 TPD flows to the Cardiff ERF under Prosiect Gwyrdd. The remaining stream — recycling, organics, and non-contracted fractions — is the immediate feedstock universe for Phase Initial. Mae Cyngor Dinas Casnewydd yn cynhyrchu tua ~130 TPD o fwyd-stoc gweithgynhyrchu bob blwyddyn. O'r cyfanswm hwnnw, mae tua 61 TPD yn llifo i'r ERF yng Nghaerdydd o dan Prosiect Gwyrdd.

Carbotura's ACM facility converts residual waste streams into synthetic graphite, graphene compounds, and recovered minerals using the MCR process — anoxic, oxygen-free, no combustion. Zero Council capital cost. Zero construction debt. Zero operating liability. Newport's sole financial obligation is the Beneficiation Fee on delivered feedstock. From Month 13, the Circular Royalty™ returns more than was paid. Mae cyfleuster ACM Carbotura yn trosi ffrydiau gwastraff gweddilliol yn graffit synthetig, cyfansoddion graphene a mwynau adferedig. Dim cost cyfalaf y Cyngor. Dim dyled adeiladu. Dim atebolrwydd gweithredu.

Phase Initial at 65 TPD can be commissioned and operational before the Prosiect Gwyrdd contract expires. Phase Expanded at 130 TPD addresses Newport's full addressable feedstock ceiling. The CSA structure does not require renegotiating with Viridor for the contracted stream — Phase Initial draws from non-contracted volumes; Phase Expanded phases in as the Viridor contract approaches its horizon. Gall Cyfnod Cychwynnol ar 65 TPD fod yn weithredol cyn i gontract Prosiect Gwyrdd ddod i ben. Mae Cyfnod Estynedig ar 130 TPD yn mynd i'r afael â nenfwd feedstock llawn Casnewydd.

Newport Deployment ScaleGraddfa Ddefnyddio Casnewydd
Phase InitialCyfnod Cychwynnol65 TPD
Non-contracted MSW + organics · before Viridor horizonMSW heb gontract + organig · cyn gorwel Viridor
Phase ExpandedCyfnod Estynedig130 TPD
Full Newport ceiling · absorbs Prosiect Gwyrdd stream at contract expiryNenfwd llawn Casnewydd · yn cymryd ffrwd Prosiect Gwyrdd
Manufactured outputsAllbynnau gweithgynhyrchu
Synthetic graphite Graphene compounds Recovered minerals
The SituationY Sefyllfa

Five structural facts for Newport City CouncilPum ffaith strwythurol ar gyfer Cyngor Dinas Casnewydd

1
Prosiect Gwyrdd expires ~2040–41 with no contracted successor — the window to develop alternative infrastructure is open now.Mae Prosiect Gwyrdd yn dod i ben ~2040–41 heb olynydd wedi'i gontractio — mae'r ffenestr ar agor nawr.

The Viridor Cardiff ERF contract absorbs 61 TPD of residual MSW through ~2040–41. Newport has no confirmed infrastructure for that volume after contract expiry. The latest Term Sheet phase verification can be authorised and still have Phase Expanded operational before 2040 is approximately 2032–33. Every year of inaction forecloses one year of buffer. Authorising in 2026 preserves the maximum window.Mae contract ERF Caerdydd Viridor yn cymryd 61 TPD o MSW gweddilliol hyd at ~2040–41. Nid oes gan Gasnewydd seilwaith cadarnhaol ar gyfer y cyfaint hwnnw ar ôl i'r contract ddod i ben.

2
Zero Council capital — Carbotura funds, builds, owns, and operates the ACM facility entirely.Dim cyfalaf y Cyngor — Mae Carbotura yn ariannu, adeiladu, perchnogi a gweithredu'r cyfleuster ACM.

Newport's financial exposure is limited to the Beneficiation Fee — a per-tonne Beneficiation Fee set below Newport's verified blended disposal cost. No construction debt, no planning expenditure for infrastructure the Council does not own, no operating liability. The 30-year CSA is a Carbotura obligation backed by step-in rights and a Parent Performance Guarantee.Caiff maint ariannol Casnewydd ei gyfyngu i'r Beneficiation Fee. Dim dyled adeiladu, dim atebolrwydd gweithredu.

3
O Flwyddyn 2, mae'r Circular Royalty™ yn rhagori ar y Beneficiation Fee.

Year 1 Beneficiation Fee at Phase Initial (65 TPD): approximately £2.37M. Year 2 Circular Royalty™: approximately £2.85M. Gross cost displacement quantified separately. At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee on a per-tonne basis.Blwyddyn 1 Beneficiation Fee ar Gyfnod Cychwynnol (65 TPD): tua £2.37M. Blwyddyn 2 Royalty: tua £2.85M.

4
Docks Way Landfill qualifies as an Exogenesis™ Royalty candidate — a Newport waste liability converted to income.Mae Tirlenwi Ffordd y Dociau yn gymwys fel ymgeisydd Exogenesis™ Royalty.

The Docks Way landfill has been identified as a qualifying Exogenesis™ Royalty candidate — converting accumulated legacy landfill material into a structured dual-stream payment alongside the primary CSA. Subject to Waste Characterization Study confirmation. Available under the CSA — does not alter primary CSA commercial terms.Mae tirlenwi Ffordd y Dociau wedi'i nodi fel ymgeisydd cymwys ar gyfer yr Exogenesis™ Royalty. Yn amodol ar gadarnhad Astudiaeth Nodweddu Gwastraff.

5
ACM manufacturing classification — not solid waste — satisfies Wales's circular economy mandate and avoids WTE dependency.Mae dosbarthiad gweithgynhyrchu ACM yn bodloni mandad economi gylchol Cymru.

The Welsh Government's Beyond Recycling strategy and circular economy targets require progressive diversion from landfill and combustion. ACM operating under manufacturing classification (SIC Sector C) produces materials — synthetic graphite, graphene compounds, recovered minerals — that enter industrial supply chains rather than being combusted. Newport's ACM pathway is compliant with Wales's post-WTE strategic direction and avoids long-term dependency on combustion-based ERF capacity.Mae strategaeth Tu Hwnt i Ailgylchu Llywodraeth Cymru yn mynnu dargyfeirio cynyddol o dirlenwi a hylosgi. Mae llwybr ACM Casnewydd yn cydymffurfio â chyfeiriad strategol Cymru.

CSA StructureFframwaith Dewis CSA

Two paths for Newport City Council Dau lwybr ar gyfer Cyngor Dinas Casnewydd

the CSA / Strwythur CSA
Standard CSA
Circular Royalty™Dewisiad Safonol
Royalty Cylchol™
Beneficiation Fee replaces disposal spending; Circular Royalty™ begins Month 13 and escalates annually. Mae'r Beneficiation Fee yn disodli gwariant gwaredu; mae'r Royalty Cylchol™ yn dechrau Mis 13.
  • Beneficiation Fee: £100/tonne planning basis · 2.5%/yr escalatorBeneficiation Fee: £100/tunnell · 2.5%/flwyddyn
  • Circular Royalty™: 120% of the current-year Beneficiation Fee, +1pp/yrRoyalty Cylchol™: 120% o sail ffi Blwyddyn 1, +1pp/flwyddyn
  • Royalty commencement: Month 13 after corresponding Beneficiation Fee payment (rolling monthly)Cychwyn Royalty: Mis 13 ar ôl y Beneficiation Fee cyfatebol
  • 30-year CSA term · perpetual continuation languageCSA 30 mlynedd · iaith parhad parhaol
  • Parent Performance Guarantee · Zero Council capexGwarant Perfformiad Rhiant · Dim cyfalaf y Cyngor
  • Regulatory Predicate Transition (RPT) requiredAmod Rhagflaenus Dosbarthiad (RPT) yn ofynnol
  • IFRS / UK GAAP accounting treatment
Bonus Feature · Available under the CSA Nodwedd Bonws · Ar gael gydag Strwythur CSA neu Strwythur CSA
Exogenesis™ Royalty · Docks Way Landfill Exogenesis™ Royalty · Tirlenwi Ffordd y Dociau

The Docks Way landfill has been identified as a qualifying Exogenesis™ Royalty candidate — converting accumulated legacy landfill material into a structured dual-stream payment alongside the primary CSA. This converts a legacy disposal liability into a royalty-generating instrument without altering primary CSA terms.Mae tirlenwi Ffordd y Dociau wedi'i nodi fel ymgeisydd cymwys ar gyfer yr Exogenesis™ Royalty — yn trosi deunydd tirlenwi gwaddol cronedig yn offeryn cynhyrchu royalty heb newid telerau CSA cyfradd sylfaenol.

Available under the CSA. Subject to Waste Characterization Study confirmation.Ar gael o dan Strwythur CSA neu Strwythur CSA. Yn amodol ar gadarnhad Astudiaeth Nodweddu Gwastraff.

Subject to Waste Characterization Study confirmation Yn amodol ar gadarnhad Astudiaeth Nodweddu Gwastraff
Phase Initial Indicative Terms · 65 TPD · 23,725 TPY · GBPTelerau Arfaethedig Cyfnod Cychwynnol · 65 TPD · GBP

Key figures at a glanceFfigurau allweddol ar olwg

Beneficiation FeeBeneficiation Fee
£100
per tonne planning basis
2.5%/yr escalatory dunnell · sylfaen cynllunio
2.5%/flwyddyn escalator
Royalty · Year 2Royalty · Blwyddyn 2
~£2.85M
Cyfnod Cychwynnol 65 TPD
+£416K gormodedd
Prosiect Gwyrdd
~2041
Contract horizon · 61 TPD
no successor confirmedGorwel contract · 61 TPD
dim olynydd cadarnhaol
Council CapexCyfalaf y Cyngor
£0
Carbotura SPV finances all
No public construction debtCarbotura SPV yn ariannu'r cyfan
Dim dyled adeiladu cyhoeddus
Decision SummaryCrynodeb y Penderfyniad

Strwythur CSA yn erbyn Strwythur CSA — cymhariaeth nodweddion

All financial figures GBP. £100/tonne planning-basis Beneficiation Fee — subject to Term Sheet phase verification confirmation of Newport's verified blended disposal cost. Prosiect Gwyrdd contract horizon ~2040–41 from publicly reported partnership terms. Docks Way Landfill Exogenesis™ candidacy subject to Waste Characterization Study confirmation. Accounting standard: IFRS / UK GAAP. Counterparty: Newport City Council (Cyngor Dinas Casnewydd). Gross cost displacement is quantified separately from Circular Royalty™ cash flow per the Separate Transaction Principle. At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee on a per-tonne basis. Circular Royalty™ payments begin 13 months after corresponding Beneficiation Fee payments and ramp to full run-rate on a rolling basis. This document is current as of May 2026. Pob ffigur ariannol mewn GBP. Sylfaen cynllunio Beneficiation Fee £100/tunnell — yn amodol ar gadarnhad costau gwaredu dilysiedig Casnewydd. Gorwel contract Prosiect Gwyrdd ~2040–41. Ymgeiswyr Exogenesis™ Tirlenwi Ffordd y Dociau yn amodol ar gadarnhad Astudiaeth Nodweddu Gwastraff. Yn gyfredol hyd at Fai 2026.
Canonical Principles
  1. Carbotura is a manufacturer, not a waste manager. Advanced Circular Manufacturing converts delivered feedstock into products; it does not manage or dispose of waste.
  2. The Beneficiation Fee and the Circular Royalty™ are independent transactions. They are reported separately and in full, and are never netted against each other.
  3. Hydrogen powers the facility internally — it is generated and consumed on site to run the process, and is not sold as offtake.