Circular Supply ProposalCynnig Cyflenwi CylcholCynnig Cyflenwi Cylchol
Advanced Circular Manufacturing Partnership Offer Prepared by Carbotura, Inc.Carbotura, Inc.Paratowyd gan Carbotura, Inc.Carbotura, Inc. · Confidential· CyfrinacholCynnig Partneriaeth Gweithgynhyrchu Cylchol Uwch · Paratowyd gan Carbotura, Inc.Carbotura, Inc. · Cyfrinachol
Eight Commitments · One EngagementWyth Ymrwymiad · Un Ymgysylltiad
Five items are required for every engagement and establish the structural commitment between Newport City Council and Carbotura. Three optional items signal Regional Authority materials offtake under the CMOA.Mae pum eitem yn ofynnol ar gyfer pob ymgysylltiad ac yn sefydlu'r ymrwymiad strwythurol rhwng Cyngor Dinas Casnewydd a Carbotura. Mae tair eitem ddewisol yn arwyddo etholiad offtake yr Awdurdod Rhanbarthol.
§0 — What This Means
Beneficiation Fee: TBD £/ton (Yr 1 — pending Joint Working Group phase FWDC verification)
+2.5%/yr escalator
Phase Initial: ~£[TMC × 47,332 tpy]/yr
Carbotura's Beneficiation Fee on feedstock deliveredFfi TMC: TBD £/tunnell (Bl 1 — yn aros cadarnhad FWDC yr Astudiaeth Dichonoldeb)
+2.5%/bl uwchgyfraddu
Circular Royalty™: 120% of corresponding Fee
+1pp/yr escalator (Year 5 = 124%, Year 30 = 148%)
Phase Initial: ~£[1.20 × TMC × 47,332 tpy]/yr (Yr 2)
→ Growing to £[148% × TMC × 47,332 tpy]/yr (Yr 30)
From Carbotura product revenues · 13-month lag · rollingRoyalty Cylchol™: 120% o'r Ffi gyfatebol
+1pp/bl uwchgyfraddu
£0 Beneficiation Fee
Consideration: site deed at signing
Newport City Council deeds project site to Carbotura at CSA execution via HM Land Registry title transfer£0 Ffi TMC
Ystyriaeth: gweithred safle ar lofnodi
(Cyfnewid Asedyn · unwaith, anochel)
Circular Royalty™: $100/ton
+1%/yr escalation from Year 2
Phase Initial: ~$4.73M/yr (~£3.74M) (Yr 2)
→ ~$6.25M/yr (~£4.94M) (Yr 30)
From Carbotura product revenues · 13-month lag · symmetric Take-or-Pay floorRoyalty Adnoddau'r Awdurdod Rhanbarthol: $100/tunnell
+1%/bl uwchgyfraddu o Flwyddyn 2
Docks Way landfill deeded at signing
Single qualifying asset — Subject to Waste Characterization Study
Subject to Waste Characterization Study; post-closure care, leachate, monitoring obligations transfer to CarboturaTirlenwi Ffordd y Dociau wedi'i drethu ar lofnodi
(Cyfnewid Asedyn, ail offeryn)
Exogenesis™ Royalty: $50/ton extracted
+1%/yr escalation from Year 2
Anchor case (Docks Way ~30,000 tpy): ~$1.52M/yr (~£1.20M) (Yr 6)
From Year 5 post-COD · independent royalty stream · 13-month lag from first extractionRoyalty Exogenesis™: $50/tunnell wedi'i echdynnu
+1%/bl uwchgyfraddu o Flwyddyn 2
- What Carbotura offers:Beth Mae Carbotura yn ei Gynnig: A privately financed, Build-Own-Operate ACM facility receiving up to 200 TPD of Newport feedstock at full scale. Carbotura's SPV funds, builds, and operates the facility. Newport City Council's sole financial obligation under the CSA is the per-tonne Beneficiation Fee. The Exogenesis™ Royalty bonus stacks on the CSA as an independent landfill remediation royalty stream (Docks Way anchor, Subject to Waste Characterization Study). Carbotura, Inc. provides an 18-month Parent Performance Guarantee on all SPV payment obligations during operations ramp.Cyfleuster ACM a ariennir yn breifat, yn derbyn hyd at 200 TPD o fwyd-stoc Casnewydd ar raddfa lawn. Unig rwymedigaeth ariannol Cyngor Dinas Casnewydd o dan Strwythur CSA yw'r Ffi TMC fesul tunnell.
- What Newport City Council commits:Beth Mae Cyngor Dinas Casnewydd yn ei Ymrwymo: A 30-year Circular Supply Agreement (CSA) for feedstock supply. per-tonne Beneficiation Fee (formula-bound, FWDC-derived, +2.5%/yr). Exogenesis™ Royalty bonus (under the CSA, Subject to Waste Characterization Study): Docks Way landfill deed at signing as the qualifying remediation asset.Cytundeb Cyflenwi Cylchol 30 mlynedd ar gyfer cyflenwi bwyd-stoc. Strwythur CSA: Ffi TMC fesul tunnell. Strwythur CSA: gweithred safle ar lofnodi.
- What Newport City Council receives:Beth Mae Cyngor Dinas Casnewydd yn ei Dderbyn: An independent Royalty stream paid by Carbotura from product revenues — beginning 13 months after first Beneficiation Fee payment. Circular Royalty™ at 120% of current-year Beneficiation Fee/tonne, growing to 148% by Year 30.73M/yr (~£3.74M) in Year 2, growing to ~$6.25M/yr (~£4.94M) in Year 30. Exogenesis™ Royalty bonus (Docks Way anchor, Subject to Waste Characterization Study): adds ~$1.52M/yr (~£1.20M) from Year 6. All streams reported as separate transactions.Ffrwd Royalty annibynnol a delir gan Carbotura o refeniw cynhyrchion — yn dechrau 13 mis ar ôl y cyflenwad bwyd-stoc cyntaf. Strwythur CSA: Royalty Cylchol™. Strwythur CSA: Royalty Adnoddau'r Awdurdod Rhanbarthol.
§1 — Commercial Structure and Decision Window
Advanced Circular Manufacturing is a manufacturing process, not a waste-management activity. Microwave Catalytic Reforming operates in an anoxic, oxygen-free, sub-atmospheric environment — mechanistically incompatible with combustion or biological degradation. ACM does not fit within the waste domain and does not operate under waste-domain statutes. The Regulatory Predicate Transition (RPT) — also framed as the dewaste pathway — is the coordinated regulatory shift from legacy disposal-predicate statutes onto manufacturing-predicate classifications. 100% elemental recycling of the municipal material stream requires this transition. Manufacturing NAICS 325180 · 325998 · 327992 · 331110 · 331314 · 331492 (6-code ACM set) plus EPA RCRA §1004(27) / 40 CFR §261.2(e) exclusion pathway in the US; ISIC Rev.4 20-25 + UN CPC 89 internationally. In many jurisdictions the required authorities already exist in latent form within existing statutes; in others the transition requires primary-authority amendments. The Joint Working Group phase includes a regulatory engagement workstream to shepherd the RPT alongside site permitting. Both parties commit to the RPT pathway. Carbotura brings the process-classification evidence, regulatory engagement expertise from prior ACM deployments, and the legal-technical framework. The counterparty brings the standing to engage the local regulator, the political mandate for the transition, and — where applicable — legacy statutory authorities that can be re-instrumented for manufacturing use. The endpoint is categorical: manufacturing classification across all permitting, licensing, and regulatory contexts. Interim bridging authorities may apply during the transition.
Regulatory basis: RCRA §1004(27) · 40 CFR §261.2(e) · 40 CFR §260.43Sail reoliadol: RCRA §1004(27) · 40 CFR §261.2(e) · 40 CFR §260.43 · Deiseb Gwaharddiad Gwastraff Solet RCRA EPA (yn aros i'w ffeilio, Ebrill 2026)
§1.1 — The Circular Supply AgreementCytundeb Cyflenwi Cylchol§1.1 — Y Cytundeb Cyflenwi Cylchol
The CSA is a 30-year manufacturing feedstock supply agreement between Newport City CouncilCyngor Dinas Casnewydd (Feedstock Supplier) and Carbotura, Inc.Carbotura, Inc. (ACM FacilityCyfleuster OperatorGweithredwr). It is not a waste disposal contract.
| PartyParti | CommitmentYmrwymiad | DurationHyd |
|---|---|---|
| Newport City CouncilCyngor Dinas Casnewydd | Delivers agreed feedstock volumes to ACM facility at agreed rates | 30 years from PhaseCam Initial CODCOD y Cam Cychwynnol |
| Carbotura, Inc.Carbotura, Inc. | Funds, designdyluniads, constructs, owns, and operates ACM facility; pays Beneficiation Fee; pays Circular Royalty™ from Month 13 | 30 years; BOO structure |
§1.2 — Decision WindowFfenestr§1.2 — Ffenestr Penderfynu
| MilestoneCarreg Filltir | Timing (Indicative)Amseru (Arwyddol) |
|---|---|
| Joint Working Group phase authorisation (Council resolution)Awdurdodi Astudiaeth Dichonoldeb (penderfyniad y Cyngor) | Earliest action — opens all options |
| Joint Working Group phase completionCwblhau cam y Gweithgor ar y Cyd | ~9–12 months post-authorisation |
| CSA negotiation and executionNegodi a gweithredu'r CSA | ~3–6 months post-Feasibility |
| Planning and permitting (Wales)Cynllunio a chaniatâd (Cymru) | ~12–18 months post-CSA |
| Construction, PhaseCam Initial (1 modulemodiwl)Adeiladu, Cam Cychwynnol (1 modiwl) | ~18–24 months post-permit |
| PhaseCam Initial CODCOD y Cam Cychwynnol | Carbotura standard deployment scheduleAmserlen Defnyddio Safon Carbotura |
| First Circular Royalty™ paymentTaliad Royalty Cylchol CyntafTaliad Circular Royalty™ cyntaf | Month 13 post-COD, PhaseCam Initial |
§1.5 — CSA Structure
At CSA execution, Newport City Council The Exogenesis™ Royalty Bonus is a universal additive stream available as a CSA add-on, activated when Docks Way landfill is deeded at signing (Subject to Waste Characterization Study — subject to Waste Characterization Study). Election is exclusive at signing; subsequent renegotiation requires mutual agreement and reset terms.Wrth weithredu'r CSA, mae Cyngor Dinas Casnewydd yn ethol rhwng Strwythur CSA (Etholiad Safonol) ac Strwythur CSA (Cyfnewid Royalty Adnoddau'r Awdurdod Rhanbarthol). Mae'r Bonws Royalty Exogenesis™ ar gael gyda'r naill etholiad neu'r llall.
Newport / Wales Application Note: Both the CSA are commercially available to Newport City Council as a Welsh devolved local-government principal area.3 miles) and the opportunity to extinguish Newport's post-closure care obligations at CSA execution.Mae'r ddau Strwythur CSA ac B ar gael yn fasnachol i Gyngor Dinas Casnewydd fel ardal lywodraethol leol datganoledig Cymreig. Mae Strwythur CSA yn gyfreithlon gymwys yn unol â chapasiti Awdurdod Rhanbarthol Casnewydd o dan y fframwaith datganoledig Cymreig.
Docks Way, Newport City Council's active municipal landfill, is the sole qualifying asset for the Exogenesis™ Royalty Bonus. Where the CSA includes the post-closure care obligation for Docks Way, Carbotura commits to deploy the Exogenesis™ programme (legacy landfill mining with APS, fully electric fleet) within 3–7 years post-COD, alongside the primary Regenesis™ facility. Additional balance-sheet effects: all post-closure care, leachate, methane, and monitoring obligations transfer to Carbotura at CSA execution; Newport's post-closure care liability is extinguished at signing. Docks Way's adjacent location to the ABP Atlantic Site Priority 1 (Site Candidate Analysis §2.4) makes this extinguishment particularly efficient — single logistics corridor for both Regenesis™ and Exogenesis™ operations. Condition: subject to Waste Characterization Study confirmation of extractable mass economics.Ffordd y Dociau, tirlenwi dinesig gweithredol Cyngor Dinas Casnewydd, yw'r unig asedyn cymwys ar gyfer y Bonws Royalty Exogenesis™. Mae amodol i gadarnhad yr Astudiaeth Nodweddion Gwastraff.
§2 — Deployment Architecture
§2.1 — PhaseCam Configuration§2.1 — Ffurfwedd y Cam
| PhaseCam | TPDTPD | ModulesModiwlau | Annual FeedstockBwyd-stoc Blynyddol | % of Addressable | COD | Source |
|---|---|---|---|---|---|---|
| PhaseCam Initial | 100 TPDTPD | 1 ceil(100/100)=1 | ~36,500 tpytpy | ~77% of immediately accessible | Carbotura standard deployment scheduleAmserlen Defnyddio Safon Carbotura | Carbotura standard |
| PhaseCam MediumCanolig | 100 additional TPDTPD | 1 additional | ~36,500 tpytpy incremental | ~52% of conditionally accessible | Carbotura standard deployment scheduleAmserlen Defnyddio Safon Carbotura | Carbotura standard |
| PhaseCam Expanded | 200 TPDTPD totalcyfanswm | 2 totalcyfanswm ceil(200/100)=2 | ~73,000 tpytpy | ~56% of totalcyfanswm addressable | ~2040+ (post-Prosiect Gwyrdd) | DERIVEDWEDI'I DDEILLIO |
§2.2 — Build-Own-Operate Capital StructureStrwythur Cyfalaf
| ItemEitem | Newport City CouncilCyngor Dinas Casnewydd | Carbotura, Inc.Carbotura, Inc. |
|---|---|---|
| FacilityCyfleuster designdyluniad and construction | Carbotura-funded | |
| Construction financing | Carbotura balance sheet | |
| Operating costscostau | Carbotura-operated | |
| Technology performance risk | Carbotura | |
| Insurance and regulatory compliance | Carbotura obligation | |
| Council's sole financial obligation | Beneficiation Fee per tonneFfi TMC fesul tunnellBeneficiation Fee fesul tunnell of feedstock delivered |
§2.3 — Feedstock StreamFfrwd Coverage by PhaseCam§2.3 — Cwmpas Ffrwd Bwyd-stoc yn ôl Cam
| StreamFfrwd | PhaseCam Initial | PhaseCam MediumCanolig | PhaseCam Expanded | Access ClassificationDosbarthiad Mynediad |
|---|---|---|---|---|
| Food waste (captured kerbside)Gwastraff bwyd (wedi'i gasglu o ymyl y palmant) | ✓ | ✓ | ✓ | IMMEDIATEAR UNWAITH |
| Garden waste (seasonal)Gwastraff gardd (tymhorol) | ✓ | ✓ | ✓ | IMMEDIATEAR UNWAITH |
| Biosolids (Dŵr Cymru Welsh Water)Bioslodion (Dŵr Cymru Welsh Water) | ✓ | ✓ | ✓ | ACCESSIBLEHYGYRCH |
| C&D residualGweddilliol Adeiladu a Dymchwel | ✓ | ✓ | ✓ | ACCESSIBLEHYGYRCH |
| Commercial / trade residualGweddilliol Masnachol | PartialRhannol | ✓ | ✓ | CONDITIONAL |
| Kerbside residual householdGwastraff cartref gweddilliol ymyl y palmant | ✓ | CONDITIONAL (~2040+)AMODOL (~2040+) | ||
| HWRC residualGweddilliol HWRC | ✓ | CONDITIONAL (~2040+)AMODOL (~2040+) |
§2.4 — Site Candidate Analysis
Three candidate zones were identified and researched using current industrial property data, ABP masterplan documentation, planning records, and proximity analysis to primary feedstock sources. PriorityBlaenoriaeth 1 is strongly supported by the co-location profile and ABP's active clean growth hub programme.
Site Opportunity MapMap Cyfle Safle
Port of Newport (South Dock)Porthladd Casnewydd (Doc y De)
Leeway Industrial EstateYstâd Ddiwydiannol Leeway
Southeast NewportDe-ddwyrain Casnewydd