Circular Supply Proposal

What this document is

The commercial structure of one Circular Supply Agreement for Johnson County — the Beneficiation Fee, the Circular Royalty™, deployment from 400 to 1,200 TPD, site candidates, risk and timeline.

Three things this document says
  1. Phase Initial at 400 TPD (146,000 TPY) is the entry point; the CSA scales to 1,200 TPD without renegotiating commercial 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. Zero County capital at any phase; the Johnson County Landfill is an Exogenesis™ candidate subject to characterisation.
Looking for something else?
Carbotura · Circular Advantage Program · Circular Supply Proposal

Johnson County, Kansas
Circular Supply Proposal

A 30-year Circular Supply Agreement replaces a one-year landfill permit with a perpetual royalty framework — 400 to 1,200 TPD, at zero County capital.

Document: Stage 1 Circular Supply Proposal Prepared for: Johnson County, Kansas Date: March 2026 Basis: FWDC $42/ton ESTIMATED; volumes per-capita pending KDHE confirmation; fee and royalty ESTIMATED on Carbotura standard parameters
§0

§0 — What This Means

§0 — What This Means

Executive summary · What is offered · What the County commits · What the County receives

Circular Royalty™
OUTFLOW ↑
Fee: $100/ton Yr 1 · +2.5%/yr
Phase Initial: ~$14.6M/yr (146,000 tpy)
INFLOW ↓
Circular Royalty™: 120% from Month 13
+1pp/yr · Year 30 = 148%
~$17.52M/yr Year 2 → ~$43.1M/yr Year 30
OUTFLOW ↑
$0 Fee · site deed at signing
INFLOW ↓

~$14.6M/yr Year 2 → ~$19.3M/yr Year 30
Exogenesis™ add-on · Subject to Study
Johnson County Landfill, Shawnee KS
IF ELECTED ↑
Landfill deeded at signing (if study confirms)
Post-closure obligations → Carbotura
IF ELECTED ↓
Exogenesis™ Royalty: $50/ton · +1%/yr
~$3.65M/yr from Year 6 (indicative)
Subject to Waste Characterization Study
One Circular Supply Agreement. Johnson County executes the CSA. The Exogenesis™ add-on (Johnson County Landfill, Shawnee KS) is a CSA add-on available for discussion — it becomes a CSA element only after Waste Characterization Study, qualifying asset confirmation, and mutual agreement. All streams reported as separate transactions per MR §4.8.
  • 01
    What Carbotura offers. A 30-year Build-Own-Operate (BOO) Commercial Off-take Agreement (CSA). Carbotura finances, constructs, and operates 3–4 distributed ACM facilities totaling 400 TPD (Initial) → 800 TPD (Medium) → 1,200 TPD (Expanded) across Johnson County. The county delivers waste feedstock. Carbotura accepts it, processes it, and pays the Circular Royalty™.
  • 02
    What the County commits. Delivery of addressable feedstock to agreed ACM centers at the agreed tonnage schedule. Payment of the Beneficiation Fee (TMC Fee) ($100/ton base, escalating at 2.5%/year) upon confirmed receipt. No capital commitment. No construction debt. No operational liability. No technology risk.
  • 03
    What the County receives. Circular Royalty™ payments beginning Month 13 after first Beneficiation Fee payment — rolling, monthly, for the 30-year CSA term. At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee per ton. Estimated Circular Royalty™: $17.5M/year in Year 2 at Phase Initial; $129.8M/year at Year 30 Phase Expanded.
  • 04
    The distributed multi-center design. 3–4 ACM centers of 300–400 TPD each are distributed across the county's four quadrants. This reduces average haul distance by 40–60%, serving the county's 477-square-mile geography at optimal logistics cost, and creates redundancy unavailable to a single-facility model.
  • 05
    The decision window. A Joint Working Group phase authorized by the end of Q3 2026 is required for Phase Initial to reach COD before Q4 2028 — leaving 9 years of operational ACM infrastructure before the WM landfill's 2037 worst-case closure. Every quarter of delay compresses the margin between ACM readiness and disposal crisis.
§1

§1 — Commercial Structure and Decision Window

§1 — Commercial Structure and Decision Window

CSA structure · Obligations · Hard deadline derivation

Regulatory Predicate Transition (RPT)

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 §260.43

Carbotura Obligations
  • ✓ Finance 100% of ACM facility capital (~$247.5M initial)
  • ✓ Design, permit, construct all distributed centers
  • ✓ Operate facilities for full 30-year CSA term
  • ✓ Accept all agreed feedstock streams
  • ✓ Pay Circular Royalty™ monthly from Month 13
  • ✓ Maintain performance guarantees per CSA terms
County Obligations
  • → Deliver agreed feedstock volumes to ACM centers
  • → Pay Beneficiation Fee per confirmed received ton
  • → Provide site access during feasibility and construction
  • → Facilitate permit coordination with municipal partners
  • 0 Zero capital expenditure
  • 0 Zero construction or technology risk
Decision Window Derivation
WM landfill worst-case closure2037
Less: Phase Initial COD lead time−24 mo
Less: Joint Working Group phase−3 mo
Latest feasibility authorizationQ1 2035
Earlier authorization preserves more operational runway before the crisis window. Q3 2026 authorization targets full Phase Expanded online by 2031.
Hard Deadline — Action Window: A Joint Working Group phase authorized by Q3 2026 enables Phase Initial COD by Q4 2028 — leaving ~9 years of operational ACM infrastructure before the 2037 worst-case landfill closure. Delaying until 2030 reduces this margin to 5 years. Delaying until 2035 eliminates it. The landfill has no replacement plan, no siting process underway, and no contracted alternative.

Executive Implications — §1

  • The BOO structure transfers all capital, construction, and technology risk to Carbotura. The county's sole financial exposure is the Beneficiation Fee per delivered ton — a variable cost that replaces the current per-ton landfill disposal cost.
  • A Joint Working Group phase is the correct next procurement step. It requires no binding commitment on capital or CSA terms — it is an analytical instrument that produces the site-specific data required to negotiate the CSA with full information.
  • The distributed 3–4 center model means site failures at one center do not interrupt county-wide service. This multi-point structure is a material risk mitigation advantage over the current single-landfill dependency.
§2

§2 — Deployment Architecture

§2 — Deployment Architecture

Phase configuration · Capital structure · Site candidate analysis

§2.1 — Phase Configuration

PhaseTPD DeployedModulesCentersAnnual Feedstock% of AddressableCODSource
Initial 400 4 (ceil(400/100)) 1–2 146,000 TPY 33% T0 + 24 months EST
Medium 800 8 2–3 292,000 TPY 67% T0 + 42 months EST
Expanded 1,200 12 3–4 438,000 TPY 100% T0 + 60 months EST

T0 = Joint Working Group phase completion date (TBD). Timeline basis: Carbotura standard deployment schedule.

Johnson County ACM Deployment — Phased Capacity Build-Out
Three phases scale from 400 to 1,200 TPD over 60 months from T0, distributed across 3–4 centers spanning the county's 477 sq mi.
Phase Initial
400 TPD · 1–2 centers
T0+24mo
Phase Medium
800 TPD · 2–3 centers
T0+42mo
Phase Expanded
1,200 TPD · 3–4 centers
T0+60mo
Source: Carbotura standard deployment schedule · TPD values from Registry §D · Status: ESTIMATED

§2.2 — BOO Capital Structure

Zero County Capex · Zero Construction Debt · Zero Operational Liability
Carbotura finances, builds, and operates all ACM facilities under a Build-Own-Operate structure. The county's sole financial obligation under the CSA is the Beneficiation Fee per confirmed ton of feedstock received. Carbotura's capital structure for the initial 400 TPD deployment: $247.5M total project cost funded as 20% equity / 15% grant / 65% debt — sourced entirely from Carbotura's institutional SPV. See SPV Finance document for full capital structure detail.
PhaseTotal CapEx (Carbotura)County Capital CommitmentCounty Liability
Initial (400 TPD)$247.5M$0$0
Medium (800 TPD cumulative)$477.5M$0$0
Expanded (1,200 TPD cumulative)$707.5M$0$0

CapEx calculated per Carbotura standard parameters: $75M first 100 TPD module + $57.5M per additional 100 TPD module.

§2.3 — Feedstock Stream Coverage by Phase

StreamPhase InitialPhase MediumPhase ExpandedAccess Status
Residential MSW (~600 TPD)✓ Primary✓✓IMMEDIATE
Yard Waste / Organics (~120 TPD)✓ Primary✓✓IMMEDIATE
Commercial MSW (~350 TPD)Partial✓✓CONDITIONAL
C&D Debris (~90 TPD)Partial✓CONDITIONAL
Biosolids / FOG (~40 TPD)✓ACCESSIBLE

§2.4 — Site Candidate Analysis

Priority 1 Finding: Shawnee I-435 Industrial Corridor
The Shawnee industrial corridor at I-435 / Johnson Drive is the Priority 1 candidate for Phase Initial ACM center deployment. It is directly adjacent to the WM Johnson County Landfill — the primary existing feedstock convergence point for the county's NE quadrant, with I-435 access for 400–500 daily delivery vehicles. The area is already zoned industrial (confirmed by Shawnee planning department) and has precedent for industrial facilities in direct proximity to the landfill site, including the Archaea Energy plant and Contractors Park. De Soto/Gardner West is the strategic anchor for Phase Expanded distribution in the county's fastest-growing corridor.
Sources: Shawnee Planning Commission · johnsoncountypost.com · jocogov.org · KDHE site records · Carbotura Feasibility Assessment · Operator verification March 2026

Site Candidate Summary Table

PriorityZoneEst. AcreageZoningLand AuthorityCo-location AdvantageKey Consideration
P1 Shawnee I-435 Industrial Corridor 15–25 ac Industrial (Shawnee) City of Shawnee Planning / private industrial Adjacent to WM landfill; Perimeter Park industrial ecosystem; I-435 truck access; existing industrial permits Proximity to landfill SUP constraints; community odor/flaring sensitivity
P2 Olathe Industrial District (I-35 / NW Olathe) 20–30 ac I-1/I-2 Industrial (Olathe) City of Olathe Community Development Adjacency to Olathe Transfer Station; serves SW quadrant (~350K residents); I-35 corridor; growing industrial base Site availability needs confirmation; rail access limited
P3 De Soto / Gardner West Corridor 40+ ac Industrial (Sunflower Redevelopment) Sunflower Redevelopment Group / Johnson County Planning Panasonic EV Battery Facility industrial anchor; 28-mi haul reduction from W JC; large parcels; growth zone Infrastructure build-out in progress; greenfield site requirements
§2.5 — Finding: Phase Initial Feedstock Fully Supportable Without Third-Party Negotiation
Phase Initial (400 TPD) is fully supportable from IMMEDIATE-access streams alone — residential MSW (~600 TPD available) and yard waste/organics (~120 TPD). No commercial hauler contract renegotiation, no C&D landfill transition, and no JCW service agreement is required before Phase Initial reaches COD. The county can authorize a Joint Working Group phase and proceed to construction on the basis of streams it already controls.

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§3

§3 — Economic Structure — Beneficiation Fee (TMC Fee)

§3 — Economic Structure — Beneficiation Fee (TMC Fee)

Formula · Annual obligation · FWDC disclosure · Escalation

FWDC Planning Basis: Johnson County's Full Waste Disposal Cost is $42/ton (ESTIMATED). This is derived from the EREF 2024 Kansas state average tipping fee of $34.78/ton — the lowest in the United States — plus a Waste Management private operator premium adjustment. The WM Johnson County Landfill gate rate is not publicly posted. All figures using the FWDC carry ESTIMATED status. Confirmation via KDHE tonnage data or direct WM contract disclosure is recommended prior to CSA negotiation.
Beneficiation Fee Formula — Johnson County
TMC_Fee = MAX($100, MIN($150, FWDC − $5))
With FWDC = $42/ton (ESTIMATED):
MAX($100, MIN($150, $42 − $5)) = MAX($100, $37) = $100.00/ton ← floor applies
Floor (minimum) $100/ton Carbotura standard parameter — operative here
Ceiling (maximum) $150/ton Carbotura standard parameter
Annual escalator 2.5% / year Carbotura standard parameter
Year 5 TMC ~$110.38/ton $100 × (1.025)⁴
Year 10 TMC ~$125.02/ton $100 × (1.025)⁹
Year 30 TMC ~$203.89/ton $100 × (1.025)²⁹

Annual Beneficiation Fee Obligation by Phase

PhaseTPDAnnual TPYTMC (Year 1)Annual Obligation (Yr 1)Annual Obligation (Yr 5)Annual Obligation (Yr 10)
Initial400146,000$100/ton$14.6M EST~$16.1M~$18.3M
Medium800292,000$100/ton$29.2M EST~$32.2M~$36.5M
Expanded1,200438,000$100/ton$43.8M EST~$48.3M~$54.8M

Annual obligation = TMC_Fee_Year × annual_TPY. All figures carry ESTIMATED status from FWDC planning basis.

Executive Implications — §3

  • The Beneficiation Fee floor of $100/ton applies because Kansas's tipping fee environment is the lowest in the US. The Beneficiation Fee represents a premium over current disposal costs — but this premium is recovered by the Circular Royalty™, which exceeds $120/ton from Month 13.
  • When the WM landfill closes (est. 2037), the county's disposal alternatives will cost an estimated $80–120/ton more than the current $42/ton — making the $100 Beneficiation Fee significantly below the post-closure alternative cost. The Beneficiation Fee buys 30 years of cost certainty against an uncertain and rising post-closure market.
§4

§4 — Circular Royalty™

§4 — Circular Royalty™

Contractual definition · Parameter table · Fiscal periods · Year-by-year cash flow

§4.0 — Circular Royalty™

Standard CSA: Johnson County pays a per-ton Beneficiation Fee on feedstock delivered; Carbotura pays a Circular Royalty™ calibrated to 120% of the corresponding Fee, +1pp/yr escalator, beginning Month 13. The Circular Royalty™ exceeds the Beneficiation Fee per ton from Year 2 onward (separate transactions, never netted).

Three Canonical Statements — Circular Royalty™ Structure
  1. Gross cost displacement is quantified separately from Circular Royalty™ cash flow. Both are independent financial effects of the CSA.
  2. At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee on a per-ton basis.
  3. Circular Royalty™ payments begin 13 months after corresponding Beneficiation Fee payments and ramp to full run-rate on a rolling basis.
Circular Royalty™ Formula
Royalty(m+13) = TMC(m) × Royalty_Rate(m)
Where m = month of Beneficiation Fee payment · m+13 = month of corresponding Royalty payment · Royalty_Rate escalates annually
Base royalty rate120%of Year 1 TMC per ton
Royalty escalator+1 pp/yearYear 2: 121% · Year 5: 124%
Payment lag13 monthsalways — rolling monthly
Royalty basisRolling monthlymatches TMC payment months
TMC escalator2.5%/yearapplies to both TMC and royalty base
CSA term30 yearsstandard

§4.0.1 — Mandatory Fiscal Period Distinction

PeriodTimingCounty PaysCounty Receives
Pre-Royalty Period Months 1–12 after first Beneficiation Fee payment $100.00/ton Beneficiation Fee $0 royalty
Royalty Ramp — Month 13 Month 13 after first delivery $102.50/ton Beneficiation Fee $120.00/ton royalty
Steady State Year 2 onwards (rolling) Escalating at 2.5%/yr Escalating faster (royalty rate +1pp/yr)
Pre-Royalty Period — Budget Planning Note: During Months 1–12 after Phase Initial COD, the county pays the Beneficiation Fee and receives zero Circular Royalty™. This pre-royalty period totals 13 months from first feedstock delivery. At Phase Initial (146,000 TPY), pre-royalty budget impact = −$14.6M (Year 1 TMC) before any royalty receipt. This period must be modeled as a distinct fiscal line item in County budget planning — it is not an averaging period.

§4.0.2 — Year-by-Year Cash Flow Summary

Volumes scale by phase as each phase reaches full operations. All three gross items shown.

YearPhaseTPDAvoided DisposalTMC/tonTMC Paid (Annual)Royalty RateRoyalty/tonRoyalty Received
Year 1Initial400$42.00/ton · $6.1M$100.00$14,600,000$0 (pre-royalty)$0
Year 2Initial400$43.05/ton · $6.3M$102.50$14,965,000120%$120.00$17,520,000
Year 5Medium800$46.16/ton · $13.5M$110.38$32,231,000124%$133.54$38,993,000
Year 10Expanded1,200$52.30/ton · $22.9M$125.02$54,759,000129%$157.17$68,840,000
Year 20Expanded1,200$66.56/ton · $29.2M$160.54$70,317,000139%$217.71$95,358,000
Year 30Expanded1,200$85.93/ton · $37.6M$203.89$89,303,000149%$296.36$129,806,000

Royalty figures are amounts received. The royalty is paid 13 months in arrears, so the figure shown for a year is earned on the previous year’s delivered tonnage.

All annual figures carry ESTIMATED status. Avoided disposal = FWDC $42/ton escalating 2.5%/yr. Royalty formula: Royalty(m+13) = TMC(m) × Royalty_Rate(m).

Fiscal Position — Three Gross Items, Years 1–20
Royalty income exceeds Beneficiation Fee from Year 2. Avoided disposal cost is present from Year 1. All figures are gross — not pre-netted.
Avoided disposal cost
Beneficiation Fee paid
Circular Royalty™ received
Year 1 royalty (pending — begins Month 13)
$42.00/ton
Avoided disposal · Year 1
$100.00/ton
Beneficiation Fee paid · Year 1
$120.00/ton
Royalty received · Year 2
Carbotura Circular Advantage modeling · Registry values · FWDC $42/ton ESTIMATED · TMC $100/ton · Royalty 120% Year 1 base +1pp/yr · TPD 1,200

Executive Implications — §4

  • The first Circular Royalty™ payment arrives at Month 13. This is the beginning of a growing annual return that reaches +$40.5M at Year 30 Phase Expanded.
  • The 13-month pre-royalty period is a structural characteristic of the rolling royalty model — not a contract deficiency. It must be planned for in the county budget as a distinct phase. At $14.6M total (Phase Initial Year 1 TMC), it is a known, bounded cost.
  • By Year 10, at full expansion, the annual Circular Royalty™ is $68.8M — a recurring general fund receipt that grows for the remaining 20 years of the CSA.

§4.1 — Exogenesis™ add-on (Subject to Waste Characterization Study)

Structured Option — Not a Commitment

Exogenesis™ becomes a CSA element only after: (1) Waste Characterization Study; (2) qualifying asset confirmation; (3) mutual agreement. Presented as a structured option for discussion. The 2037 closure timeline creates urgency to begin the study now.

Potential additive royalty stream. If elected: Johnson County deeds Johnson County Landfill (Shawnee KS) to Carbotura at CSA execution (second instrument). Carbotura deploys Exogenesis™ Programme within 3–7 years post-COD. All post-closure obligations transfer at CSA execution (GASB 49 liability extinguishment).

Year (post-COD)Rate $/tonAnnual (~73,000 tpy indicative)
1–5$0
6$50.00+$3,650,000 (indicative)
10$52.02+$3,797,460
30$63.49+$4,634,770
30-yr indicative (if elected)~$103M

All values INDICATIVE. Subject to Waste Characterization Study. Stacks on the CSA — never netted (MR §4.8).

§1.5

CSA Structure

At CSA execution, Johnson County The Exogenesis™ add-on (Johnson County Landfill, Shawnee KS) is a CSA add-on available for discussion — activation requires Waste Characterization Study, qualifying asset confirmation, and mutual agreement.

Exogenesis™ add-on — Johnson County Landfill, Shawnee KS (Subject to Study)

Exogenesis™ is a CSA add-on available for discussion, not a commitment. Activation requires: (1) Waste Characterization Study; (2) qualifying asset confirmation; (3) mutual agreement. The 2037 closure timeline creates planning urgency to begin that study process now. If elected: all post-closure obligations transfer to Carbotura at CSA execution (GASB 49 environmental remediation liability extinguishment).

§5

§5 — Risk Register

§5 — Risk Register

Key risks · Responsibility allocation · Mitigations

RiskKey DriverWho Bears ItMitigationResidual Exposure
FWDC verification WM gate rate unconfirmed; ESTIMATED at $42/ton County (planning basis risk) Confirm via KDHE tonnage data or WM contract disclosure during Joint Working Group phase Beneficiation Fee floor ($100/ton) is operative regardless — FWDC confirmation does not change fee at current ESTIMATED value
Technology performance ACM output yield variations Carbotura (fully) CSA performance guarantees; TPD acceptance obligations; technology insurance County bears zero technology risk under BOO structure
Timeline slippage Permitting delays; supply chain; site complications Carbotura (construction risk) Distributed 3–4 center model staggers risk; no single critical path; parallel permitting Phase Initial delay compresses pre-2037 operational window — Joint Working Group phase authorization timing is the key lever
Commercial hauler contract constraints 3–5 year commercial hauler agreements with WM County (access constraint) Phase Initial uses only IMMEDIATE-access residential streams; commercial stream access triggered at hauler contract renewal Phase Medium delayed if commercial contracts renew at WM; Phase Initial unaffected
WM landfill SUP non-renewal Shawnee 1-year SUP (Nov 2024); methane/odor issues County (exposure to disposal crisis) ACM deployment eliminates dependence on WM landfill before closure; Phase Initial COD by Q4 2028 creates 9-year buffer If SUP denied before ACM is operational, county faces immediate haul cost shock — strongest argument for accelerated authorization
Competitive procurement trigger Procurement rules for long-term disposal contracts County (process risk) Joint Working Group phase is pre-competitive; CSA entered through appropriate procurement process Joint Working Group phase findings are publicly available and inform procurement specification
Residual stream management Non-ACM-processable materials (e.g. certain hazardous fractions) County (residual) ACM processes all material classes; residual is minimal; HHW facility handles hazardous diversion Small residual stream requires ongoing disposal arrangement — volume ESTIMATED at <2% of total
PFAS regulatory tightening EPA PFAS rules on biosolids land application County / JCW (shared) ACM converts biosolids to industrial materials — removes land application exposure entirely PFAS regulatory risk is lower under ACM than under continued land application; regulatory tailwind for biosolids stream transition
§6

§6 — Deployment Timeline

§6 — Deployment Timeline

Milestones · Hard deadline · First Circular Royalty™ payment

MilestoneOffset from T0Target Date (Q3 2026 T0)Notes
Joint Working Group phase Authorization ← DECISION POINT T0 Q3 2026 BOCC authorization required. Joint Working Group phase: 90-day analytical process. No capital commitment.
Joint Working Group phase completion T0 + 3 months Q4 2026 Site confirmation · volume verification · CSA terms drafted
Phase Initial construction start T0 + 6 months Q1 2027 Permitting and site preparation begin at P1 (Shawnee Industrial Corridor)
Phase Initial COD — 400 TPD T0 + 24 months Q3 2028 First ACM center operational. Beneficiation Fee obligations begin.
First Circular Royalty™ Payment T0 + 37 months Q4 2029 Rolling monthly royalty begins.
Phase Medium COD — 800 TPD T0 + 42 months Q1 2030 2–3 centers operational across NE and SE quadrants
Phase Expanded COD — 1,200 TPD T0 + 60 months Q3 2031 3–4 distributed centers fully operational. Full 1,200 TPD capacity.
⚠ WM Landfill worst-case closure 2037 MARC Regional Landfill Capacity Study (Burns & McDonnell, Jan 2024). Hard external deadline. ACM fully operational 6 years prior under Q3 2026 T0 scenario.

T0 = Joint Working Group phase authorization date. Timeline basis: Carbotura standard deployment schedule. Dates assume Q3 2026 authorization.

§7

§7 — Community Value Stack

§7 — Community Value Stack

County fiscal effects · Regional economic effects — presented separately

§7.1 — Johnson County Fiscal Effects

Fiscal ItemYear 1 (Pre-Royalty)Year 2 (Phase Initial)Year 10 (Expanded)Year 30 (Expanded)
Beneficiation Fee paid−$14.6M−$15.0M−$54.8M−$89.3M
Circular Royalty™ received$0+$17.5M+$68.8M+$129.8M
Gross cost displacement (FWDC avoided)+$6.1M+$6.1M+$18.4M+$18.4M

Gross cost displacement = FWDC $42/ton × annual TPY (Phase Initial 146,000 TPY; Expanded 438,000 TPY). All figures ESTIMATED.

Gross cost displacement is quantified separately from Circular Royalty™ cash flow.

§7.2 — Regional Economic Effects

Economic Impact ItemPhase Initial (400 TPD)Phase Expanded (1,200 TPD)Source
Direct FTE (ACM operations, all centers)48 jobs144 jobsEST
Indirect/induced employment (2.5× multiplier)120 jobs360 jobsEST
Annual economic impact~$28M/year~$84M/yearEST
Total employment supported168 jobs504 jobsEST
ACM industrial output value (synthetic graphite, graphene compounds, recovered minerals)Preliminary estimate pending feedstock characterizationPreliminary estimate pending feedstock characterizationNULL

Economic impact figures are from Carbotura standard parameters. They are distinct from county fiscal effects — regional economic activity is not a direct county budget line item. Industrial output value requires confirmed feedstock characterization for quantification.

§8

§8 — Why This Works in Johnson County

§8 — Why This Works in Johnson County

Six alignment factors — each tracing to Registry or Waste Study

01 — VOLUME ALIGNMENT

Johnson County's ~1,200 TPD net disposal stream precisely matches a 1,200 TPD Phase Expanded deployment. Phase Initial at 400 TPD is fully supportable from immediately accessible residential streams alone — no commercial renegotiation required to activate.

02 — INFRASTRUCTURE ALIGNMENT

The Shawnee I-435 industrial corridor (P1) is adjacent to the WM landfill — the existing feedstock convergence hub for 400–500 daily trucks. The Olathe Transfer Station (P2) provides an existing SW quadrant consolidation anchor. The De Soto/Gardner corridor (P3) is the strategic western expansion zone anchored by the Panasonic EV Battery Facility.

03 — CONTRACT TIMING ALIGNMENT

A Q3 2026 Joint Working Group phase authorization places Phase Initial COD at Q3 2028 — 9 years before the WM landfill's 2037 worst-case closure. Full Phase Expanded is operational by Q3 2031, giving the county 6 years of full-scale ACM operations before the disposal crisis materializes. No other alternative achieves this timeline — a new landfill would take 10–15 years to permit.

04 — POLICY ALIGNMENT

The Johnson County SWMP adopted September 5, 2024 identifies composting and recycling expansion goals — but explicitly does not identify a viable alternative disposal destination for the waste stream. The SWMP gap is a policy mandate that ACM directly addresses. The Kansas regulatory environment — no WTE, no landfill siting path, tightening EPA biosolids rules — aligns with ACM as the structurally preferred solution.

05 — ORGANIC MANDATE / REGULATORY DRIVER

JCW's Phase 2 Integrated Plan (2025–2029) invests $2.1B in wastewater infrastructure improvements under EPA WIFIA financing. EPA PFAS rules are tightening land application standards for biosolids — JCW's primary solids disposal pathway. An ACM co-processing pathway converts biosolids from a JCW regulatory liability into a co-processed feedstock, reducing long-term treatment cost and regulatory exposure simultaneously.

06 — ECONOMICS SPECIFICITY

The Beneficiation Fee of $100/ton is derived from Johnson County's specific disposal cost environment — the lowest tipping fee state in the US ($34.78/ton EREF 2024). The floor applies, not the FWDC-derived formula. The Circular Royalty™ ($120/ton from Month 13) is designed to exceed this floor on a per-ton basis. At Year 30, the Circular Royalty™ at Phase Initial alone exceeds the current total annual disposal cost estimate.

Ref.

Appendix A — Data Basis

Appendix A — Data Basis

Public-readable sources for all key figures

Beneficiation Fee base ($100/ton) — User intake instruction, March 2026. Floor operative per Carbotura standard formula: MAX($100, MIN($150, FWDC−$5)) with FWDC $42/ton (ESTIMATED).
FWDC ($42/ton) — EREF Analysis of MSW Landfill Tipping Fees 2024; Kansas state average $34.78/ton + WM private operator premium. erefdn.org — ESTIMATED status.
WM landfill closure 2037 — MARC Regional Landfill Capacity Study, Burns & McDonnell, January 2024. marc.org/document/landfill-capacity-study
1-year SUP renewal (Nov 2024) — Johnson County Post, November 13, 2024 and October 23, 2024. johnsoncountypost.com
CapEx structure ($247.5M / $477.5M / $707.5M) — Carbotura standard parameters: $75M first 100 TPD + $57.5M per additional 100 TPD. 20% equity / 15% grant / 65% debt.
Addressable feedstock (1,200 TPD) — Derived from Johnson County SWMP 2024 (80% disposal rate) + US Census 2024 population (632,276) + EPA per-capita generation 4.9 lbs/person/day. ESTIMATED status.
P1 Site — Shawnee Industrial Corridor — Shawnee Planning Commission approval of Contractors Park (industrial zoning) at 18700 Johnson Drive near I-435 and WM landfill; Shawnee Comprehensive Plan "Achieve Shawnee" (Oct 2021, updated Feb 2025); Shawnee EDC Perimeter Park designation as largest industrial corridor. cityofshawnee.org · shawnee-edc.com
P2 Site — Olathe Industrial District — Olathe Industrial Tracts neighborhood designation; United Industrial Park; TVH Industrial Park (16355 S Lone Elm Rd). City of Olathe Community Development. olatheks.gov
P3 Site — De Soto / Gardner Corridor — Sunflower Army Ammunition Plant redevelopment; Panasonic EV Battery Facility at Lexington Ave / K-10; Astra Enterprise Park (10301 Astra Pkwy, De Soto). Johnson County improvements report (Winter 2024). jocogov.org
Employment / economic impact — Carbotura standard parameters (ESTIMATED). Registry §G. Direct FTE: 12/100 TPD. Indirect multiplier: 2.5×.
Ref.

Appendix B — Selective Glossary

Appendix B — Selective Glossary

BOO — Build-Own-Operate
Delivery structure under which Carbotura finances, constructs, owns, and operates all ACM facilities. The county bears zero capital, construction, or technology risk.
Circular Royalty™
Revenue-sharing payment: Royalty(m+13) = TMC(m) × Royalty_Rate(m). Base 120% of the current-year Beneficiation Fee; escalates +1pp/year. Begins 13 months after first TMC payment. Designed to exceed Beneficiation Fee per ton at steady state.
CSA — Commercial Off-take Agreement
The 30-year contract governing feedstock delivery, Beneficiation Fee, Circular Royalty™, and governance between the county and Carbotura.
FWDC — Full Waste Disposal Cost
Per-ton disposal cost for the current system. Johnson County planning basis: $42/ton (ESTIMATED). Kansas has the lowest tipping fees in the US ($34.78/ton state average, EREF 2024).
Gross Cost Displacement
The current FWDC avoided by diverting feedstock from the WM landfill to ACM. Quantified separately from the Circular Royalty™.
Pre-Royalty Period
Months 1–13 after first Beneficiation Fee payment. County pays Beneficiation Fee; receives zero royalty. A structural characteristic of the 13-month rolling lag — not a contract deficiency. Must be planned as a distinct budget period.
Beneficiation Fee — Total Material Conversion Fee
Per-ton processing fee paid by county to Carbotura. Johnson County: $100/ton (floor operative). Escalates 2.5%/year. Replaces current landfill disposal cost. Formula: MAX($100, MIN($150, FWDC−$5)).
Was this circular supply proposal useful?
Indicative reference only — not an offer. All financial figures are Carbotura planning-basis estimates unless marked VERIFIED. FWDC of $42/ton is an ESTIMATED planning basis; feedstock volumes are derived from a per-capita model pending KDHE tonnage confirmation. The Beneficiation Fee of $100/ton and all royalty figures are ESTIMATED on Carbotura standard parameters and subject to Term Sheet confirmation. Johnson County Landfill (WM, Shawnee) operates under a 1-year Special Use Permit with a closure target of 2037. 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. The Beneficiation Fee and the Circular Royalty™ are independent gross transactions and are not netted anywhere in this package.