Circular Advantage — Circular Offtake Agreement

Transform Manufacturing Feedstock
from Cost Center to
Revenue Generator

A long-term contracting partnership that transforms your community's manufacturing feedstock from a legacy cost center into a revenue-generating asset through Advanced Circular Manufacturing.

120%+
Projected Year 1 Return*
129%
Projected Year 10 Return*
Near-Zero
Environmental Impact
42-45%
Material Recovery (balance: energy + water)

*Projected returns based on RevCon 3 baseline assumptions. Actual results may vary based on feedstock composition, market conditions, and local factors.

The Circular Advantage Program

Circular Advantage is Carbotura's comprehensive partnership framework for communities ready to transition from legacy disposal to Advanced Circular Manufacturing (ACM). The Circular Offtake Agreement is the financial instrument at the heart of this program, structuring the long-term economic relationship between your community and Carbotura's manufacturing operations.

Circular Offtake Agreement

The 20-30 year financial instrument that converts your feedstock into revenue

Revenue Stack

Seven independent cash flow streams that power the Circular Royalty

Feedstock Hauler Integration

Legacy haulers transition to Feedstock Hauler roles within the ACM supply chain

The Revenue Stack

The Circular Royalty is derived from seven independent cash flow streams generated by each Carbotura manufacturing facility:

  1. 1Advanced carbon materials (graphene, synthetic graphite)
  2. 2Hydrogen production
  3. 3Recovered metals and minerals
  4. 4Clean water recovery
  5. 5Energy generation (Island Mode: designed for 857 MWh daily, grid-independent, ~5% reserve buffer)
  6. 6Carbon credits and environmental instruments
  7. 7Licensing and technology partnerships

The RevCon Valorization Ladder

Carbotura uses a five-tier RevCon system to model revenue potential. All projections on this site use the conservative RevCon 3 baseline:

RevCon 1Minimum viable output
RevCon 2Below-average market conditions
RevCon 3Conservative baseline (used for all projections)
RevCon 4Above-average market conditions
RevCon 5Optimal market conditions

How the Circular Offtake Agreement Works

The Circular Offtake Agreement fundamentally reimagines what your community currently classifies as waste by converting your feedstock stream from an ongoing expense into a revenue-generating asset through Advanced Circular Manufacturing (ACM).

1

Initial Payment

Your organization pays Carbotura a TMC Fee (Total Material Conversion Fee) of $100 per ton for each new ton of manufacturing feedstock converted. The TMC Fee applies to incoming feedstock delivered by Feedstock Haulers. The fee escalates at 2.5% annually to account for inflation.

Cash Flow Planning:

Communities should plan for 12 months of outgoing TMC Fees as cash flow. The first monthly Circular Royalty payment arrives in the 13th month and continues every month thereafter for the term of the contract, starting at 120% of Year 1 fees. These TMC Fees are typically less than or equivalent to current legacy disposal costs, making the transition financially manageable.

2

Advanced Circular Manufacturing

Carbotura converts your manufacturing feedstock through the four proprietary Carbotura Protocols—Pregenesis (Feedstock Preparation), Regenesis (Feedstock Disintegration), Regenesis MAX (Materials Refining), and Exogenesis (Urban Mining)—transforming it into high-value renewable materials including graphene, synthetic graphite, and hydrogen.

Total Material Conversion (TMC) is the collective engineered outcome of all four Protocols.

3

Circular Royalty Returns

Once materials are sold, Carbotura pays a Circular Royalty™ derived from the value of manufactured materials produced from your feedstock. Monthly payments start in month 13 for each year's converted tonnage and continue every month for the contract term: Year 1 receives 120% return (100% principal + 20% premium), increasing by 1% annually.

Result: What you paid as a TMC Fee returns to you as a Circular Royalty™—effectively converting your manufacturing feedstock stream into a profit center.

The Paradigm Shift

Understanding the fundamental difference between the legacy disposal model and Advanced Circular Manufacturing (ACM)

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Understanding Legacy Disposal Weighted Costs

The legacy disposal costs shown throughout this site represent a weighted average of all the disposal and processing fees that the Circular Offtake Agreement program eliminates. Based on weighted average estimates of legacy disposal costs; actual legacy costs vary by community.

Landfill Tipping Fees

Costs to dispose of material at municipal solid waste (MSW) landfills, including what the legacy industry calls gate fees, transportation, and disposal taxes. These fees vary by region but typically range from $40-$90 per ton.

Legacy Waste-to-Energy (WTE) Tipping Fees

Fees paid to legacy incineration facilities that burn material to generate energy. What the legacy industry calls WTE tipping fees are generally higher than landfills, typically $50-$100+ per ton, and come with additional air quality and ash disposal costs.

Recycling Processing Fees

Costs to sort, clean, and process recyclable materials at legacy Material Recovery Facilities (MRFs). While recycling is preferred, processing fees can range from $0-$80 per ton depending on material quality and market conditions.

Contaminated Handling & Legacy MRF Costs

Recycling is only ~30% effective on average in the USA. The remaining 70% of materials sent to legacy MRFs (Material Recovery Facilities) become contaminated residuals that still require disposal at landfills or WTE facilities. This means communities pay twice: once for MRF processing fees, and again for disposal of contaminated materials that could not be recycledadding significant hidden costs to the weighted average.

Multiple Handling & Hidden Disposal Costs

Some communities' material is handled up to a dozen times before final disposal, with each step adding costs:

  • Collection & Transfer: Multiple haulers, transfer stations, and transport legs
  • Legacy MRF Processing: Sorting, contamination removal, baling, storage
  • Re-routing Rejects: Failed recyclables sent back for landfill/WTE disposal
  • Intermediate Processing: Shredding, compacting, pre-treatment facilities
  • Market Volatility: Materials stored multiple times waiting for commodity prices
  • Final Disposal: Ultimate landfill or WTE destination after all other steps

Despite all these handling steps and costs, most material in the legacy system still ends up in landfills or incineratedcreating environmental liability while generating zero value for your community.

The Weighted Average

Most communities use a combination of landfill disposal, legacy WTE incineration, and recycling programs. The legacy disposal cost of $250/ton in Year 1 used in our examples represents a weighted average across these three disposal methods plus contaminated handling costs, legacy MRF processing fees, multiple transfer and re-routing steps, reflecting a typical integrated legacy disposal approach. Based on weighted average estimates of legacy disposal costs; actual legacy costs vary by community. This baseline escalates 5.2% annually (the USA average for what the legacy industry charges) to account for inflation and capacity constraints.

Hidden Long-Term Costs Not Included

The legacy disposal costs shown are one-time per ton disposal fees and typically do not include long-term environmental liability, expansion, or replacement costs for landfills, WTE facilities, etc.

Legacy Disposal Model

Disposal and treatment services charging one-time fees per ton that typically do not include long-term liability, expansion, or replacement costs for landfills, WTE facilities, etc.

  • 100% subsidized by public
  • All CAPEX burden to public
  • All liability on public
  • Creates environmental burden
  • Permanent cash outflow
  • No asset creation

Advanced Circular Manufacturing (ACM)

Material production operations that pay for feedstock to create valuable products

  • 0% subsidized — public receives payment
  • Zero CAPEX burden to public
  • No liability on public
  • Designed for near-zero environmental impact
  • Net positive cash inflow
  • Circular Royalty™ receivables

Financial Impact: Cash Flow Transformation

See how the Circular Offtake Agreement transforms your financial position over time

i

Understanding the Per-Ton 10-Year Analysis

All figures below are per ton. The 10-year totals show cumulative costs and returns for converting manufacturing feedstock at the given rate each year for 10 consecutive years. All projections use the conservative RevCon 3 baseline.

Legacy Disposal Costs (Weighted Average):

Based on weighted average of what the legacy industry charges as Landfill, WTE, and Recycling tipping fees. Starts at $250/ton with 5.2% annual escalation (USA average). The 10-year total reflects paying these escalating fees each year. Based on weighted average estimates; actual legacy costs vary by community.

TMC Fee (Total Material Conversion Fee):

Starts at $100/ton with only 2.5% annual escalation. This lower escalation rate locks in long-term cost certainty.

Cash Flow Planning:

Budget for 12 months of TMC Fees before first returns. Monthly Circular Royalty payments begin on the 13th month and continue every month for the contract term. Returns start at 120% (Year 1) and increase 1% annually (121% Year 2, 122% Year 3, etc.).

Total Advantage Formula:

Avoided Legacy Disposal Costs + Circular Royalty Returns - TMC Fees Paid = Total Advantage

Legacy Disposal Model

Year 1 Cost (Weighted Avg: Landfill + WTE + Recycling)
-$250/ton
10-Year Cost (escalating 5.2% annually)
-$3,156/ton
Return to Your Organization
$0
Net Position
-$3,156
per ton over 10 years

Circular Offtake Agreement Model

Year 1 TMC Fee
$100/ton
Monthly Circular Royalty payments start 13th month at 120%, paid monthly thereafter
10-Year TMC Fee (escalating 2.5%)
$1,137/ton
10-Year Circular Royalty Returns (120-129%, +1% annually)
+$1,418/ton
10-Year Legacy Disposal Costs Avoided (5.2% escalation)
+$3,156/ton
Net Position
+$3,437
per ton over 10 years
($1,418 Circular Royalty - $1,137 TMC Fee + $3,156 avoided = $3,437)

Result: What you paid as a TMC Fee returns to you as a Circular Royalty™—effectively converting your manufacturing feedstock stream into a profit center.

400 Tons Per Day Analysis (146,000 tons/year)

How the Total Advantage is Calculated:

For a 400 TPD (146,000 tons/year) operation, the Total Advantage represents the combined benefit of:

  1. Avoided Legacy Disposal Costs: The money you would have spent on weighted average legacy disposal fees (what the legacy industry charges as Landfill + WTE + Recycling tipping fees) escalating at 5.2% annually
  2. MINUS TMC Fees Paid: Your $100/ton TMC Fee to Carbotura (escalating 2.5% annually)
  3. PLUS Circular Royalty Returns Received: The 120-129% Circular Royalty Carbotura pays back monthly starting month 13 for each year's tonnage

Formula: Total Advantage = (Legacy Costs Avoided) - (TMC Fees Paid) + (Circular Royalty Returns)

Year 1 Example: $36.50M avoided - $14.60M paid + $17.52M returned = $39.42M advantage

YearLegacy CostsTMC FeesCircular RoyaltyTotal Advantage
Year 1-$36.50M-$14.60M+$17.52M+$39.42M
Advantage = $36.50M (avoided) - $14.60M (paid) + $17.52M (Circular Royalty) = +$39.42M
Year 5 Cumulative-$217.44M-$78.49M+$97.93M+$236.88M
Cumulative over 5 years: $217.44M (avoided) - $78.49M (paid) + $97.93M (Circular Royalty) = +$236.88M
Year 10 Cumulative-$460.78M-$166.00M+$207.03M+$501.81M
Cumulative over 10 years: $460.78M (avoided) - $166.00M (paid) + $207.03M (Circular Royalty) = +$501.81M
Year 20 Cumulative-$1.17B-$384.39M+$556.14M+$1.34B
Cumulative over 20 years: $1.17B (avoided) - $384.39M (paid) + $556.14M (Circular Royalty) = +$1.34B

Forward-Looking Statement

This material contains forward-looking statements based on current expectations, estimates, and projections. Actual results may differ materially from those anticipated due to factors including but not limited to: feedstock composition variability, market conditions for manufactured materials, regulatory frameworks, project-specific site conditions, and technology performance at commercial scale. All financial projections are based on RevCon 3 baseline assumptions and are subject to the variables described herein. Carbotura makes no guarantee of specific financial returns. Past performance of related technologies does not guarantee future results.

Balance Sheet Benefits

Beyond immediate cash flow, the Circular Offtake Agreement transforms your entire financial position

From Long-Term Liability to Long-Term Asset

Legacy Disposal Balance Sheet Impact

Long-Term Feedstock Liability

What your community currently classifies as waste represents an ongoing operational expense with no offsetting value. Your feedstock stream creates perpetual negative cash flow that compounds over time with inflation escalation.

Hidden Long-Term Costs

Legacy disposal often excludes long-term liabilities: post-closure monitoring, environmental remediation, facility expansion/replacement costs, regulatory compliance updates, and contamination liability that can persist for decades.

No Asset Creation

Payments for legacy disposal create zero balance sheet value. Every dollar spent is a pure expense with no return, residual value, or asset recognition.

Increasing Financial Risk

Long-term contracts lock you into escalating costs without price protection or revenue offsets. Regulatory changes, capacity constraints, and market volatility add unpredictable financial risk.

+

Circular Offtake Agreement Balance Sheet Impact

Long-Term Feedstock Revenue Asset

Your feedstock stream becomes a recognized revenue-generating asset. The Circular Royaltycreates contractual receivables that appear on your balance sheet as long-term assets with predictable, escalating value.

Designed for Near-Zero Long-Term Liability

Advanced Circular Manufacturing is designed to eliminate long-term environmental liability. No post-closure obligations, no remediation risks, no expansion costs, no facility replacement requirements. Your legacy disposal liability is replaced with asset value.

Contractual Circular Royalty Receivables

20-30 year contracts create quantifiable, long-term receivable assets. These Circular Royaltyagreements can be valued, forecasted, and potentially leveraged or securitized to improve working capital and enterprise value.

Financial Risk Mitigation

Long-term contracts with escalating Circular Royalty returns provide cost certainty and inflation protection. Carbotura bears all operational, regulatory, and market riskyou receive only the upside through contracted Circular Royalty payments.

The Balance Sheet Transformation

Legacy disposal converts your cash into environmental liability. The Circular Offtake Agreement converts your manufacturing feedstock into financial assets.

Liability → Asset
Balance sheet reclassification
Expense → Revenue
P&L transformation
Risk → Returns
Cash flow certainty

Asset Creation

Circular Royalty returns create receivable assets on your balance sheet, improving working capital and enterprise value

ESG Value

Quantifiable sustainability benefits that impact corporate valuations, cost of capital, and customer relationships

Predictable Returns

Long-term contracts (20-30 years) provide cost certainty and escalating returns that can be forecasted and leveraged

The TMC Design Standard: Total Material Conversion

TMC is the engineered outcome of all four Carbotura Protocols.

Legacy: Disposal Agreements

Legacy contracts are disposal agreements where you pay what the industry calls a tipping fee to make a problem disappear. The material is buried, burned, or shipped elsewhere.

Result: Long-term liability by design

Circular Offtake Agreement: Asset Conversion

By signing a Circular Offtake Agreement, your manufacturing feedstock stream is converted from a long-term liability into a long-term income-producing asset. Instead of paying for legacy disposal, you receive Circular Royalty payments for feedstock.

Result: Designed for liability extinction + Revenue generation

The TMC Design Standard

The engineered outcome of Pregenesis, Regenesis, Regenesis MAX, and Exogenesis

Designed for
Complete Material Custody

We take custody of all material

Designed for
Total Material Conversion

We convert all mass into products

Designed for
Near-Zero Residual

Designed for near-zero residualno landfill dependence, no ash generation, engineered to minimize liability

Carbotura offers communities an entirely new economic modelone where manufacturing feedstock generates ongoing value rather than perpetual cost.

Validated by sovereign-level government contracts and a ~$7B pipeline. First modular factory under construction, 2027 commercial operations targeted.

This is Carbotura. This is Total Material Conversion.

Ready to Enter Advanced Circular Manufacturing?

The Circular Offtake Agreement works for organizations generating municipal manufacturing feedstock, commercial and industrial feedstock, coal, coal ash, tires, rubber products, and mining tailings.

Minimum volume: Typically 25,000+ tons annually for dedicated program enrollment

The Bottom Line

The Circular Offtake Agreement transforms legacy disposal from a cost center into a profit center

Financial returns that exceed your initial payments

Designed for near-zero environmental impact that supports sustainability commitments

Balance sheet benefits through asset creation and positive cash flow

Competitive positioning as a circular economy leader

Legacy disposal pays to eliminate what your community currently classifies as waste.

The Circular Offtake Agreement pays you back—with a Circular Royalty™ premium—while designing for near-zero environmental impact.

Forward-Looking Statement

This material contains forward-looking statements based on current expectations, estimates, and projections. Actual results may differ materially from those anticipated due to factors including but not limited to: feedstock composition variability, market conditions for manufactured materials, regulatory frameworks, project-specific site conditions, and technology performance at commercial scale. All financial projections are based on RevCon 3 baseline assumptions and are subject to the variables described herein. Carbotura makes no guarantee of specific financial returns. Past performance of related technologies does not guarantee future results.