Circular Advantage™ Program

Transform Waste
from Cost Center to
Revenue Generator

A long-term contracting partnership that transforms your community's largest liability into a valuable asset—reducing costs and generating revenues through circular manufacturing.

120%+
Year 1 Return
129%
Year 10 Return
Zero
Environmental Burden
100%
Material Recovery

How the Circular Advantage Program Works

The Circular Advantage program fundamentally reimagines waste management by converting your waste stream from an ongoing expense into a revenue-generating asset.

1

Initial Payment

Your organization pays Carbotura a Pregenesis Fee of $100 per ton for each new ton of waste processed. Only new waste has a charge. The fee escalates at 2.5% annually to account for inflation.

Cash Flow Planning:

Communities should plan for 12 months of outgoing Pregenesis Fees as cash flow. The first monthly 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 Pregenesis Fees are typically less than or equivalent to current waste disposal costs, making the transition financially manageable.

2

Circular Manufacturing

Carbotura processes your waste through proprietary Regenesis technology, transforming it into high-value renewable materials including graphene, synthetic graphite, and hydrogen.

3

Revenue Sharing Returns

Once materials are sold, Carbotura revenue-shares back to you through monthly royalty payments starting in month 13 for each year's processed ton and continuing 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 Pregenesis Fee returns to you as manufacturing revenue—effectively converting your waste stream into a profit center.

The Paradigm Shift

Understanding the fundamental difference between traditional waste management and Circular Manufacturing

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Understanding Traditional Weighted Costs

The "Traditional Waste Management" costs shown throughout this site represent a weighted average of all the disposal and processing fees that the Circular Advantage program eliminates:

🏗️ Landfill Tipping Fees

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

🔥 WTE (Waste-to-Energy) Tipping Fees

Fees paid to incineration facilities that burn waste to generate energy. 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 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 & MRF Costs

Recycling is only ~30% effective on average in the USA. The remaining 70% of materials sent to 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 couldn't be recycled—adding significant hidden costs to the weighted average.

🔄 Multiple Handling & Hidden Disposal Costs

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

  • Collection & Transfer: Multiple haulers, transfer stations, and transport legs
  • 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 waste still ends up in landfills or incinerated—creating environmental liability while generating zero value for your community.

📊 The Weighted Average

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

⚠️ Hidden Long-Term Costs Not Included

The traditional costs shown are one-time per ton disposal fees and typically do not include long-term environmental liability, post-closure monitoring, facility expansion or replacement costs, remediation expenses, or regulatory compliance escalation—all of which add substantial hidden costs over time.

Traditional Waste Management

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

Circular Manufacturing

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
  • Zero environmental burden
  • Net positive cash inflow
  • Revenue-sharing receivables

Financial Impact: Cash Flow Transformation

See how the Circular Advantage program transforms your financial position over time

ℹ️

Understanding the 10-Year View

All calculations are based on processing 1 new ton of waste each year for 10 years (10 different tons total). Each ton is a new ton of waste material that has a charge—it's not the same ton processed repeatedly.

Traditional Costs (Weighted Average):

Traditional disposal costs are based on a weighted average of Landfill Tipping Fees, WTE (Waste-to-Energy) Tipping Fees, and Recycling Tipping Fees—all the costs that Circular Advantage eliminates. Each year, you pay for 1 new ton with 5.2% inflation escalation annually (the USA average). Over 10 years, you've paid for 10 different tons of waste disposal, totaling significant cumulative costs.

Circular Advantage Pregenesis Fee:

Each year, you pay $100 per ton Pregenesis Fee for that year's new ton (escalating 2.5% annually). Over 10 years, you've paid Pregenesis Fees for 10 different new tons of waste. This lower escalation rate provides long-term cost certainty compared to traditional waste management.

13-Month Payment Cycle & Ongoing Royalties:

Important: Communities should budget for 12 consecutive months of outgoing Pregenesis Fees as cash flow. For each year's ton, monthly royalty payments begin on the 13th month after that year's processing at 120% of that year's fees and continue every month thereafter for the term of the contract. Subsequent years follow the annual escalation schedule with 1% increases in the bonus percentage.

Revenue Returns (120-129% escalating):

Each year's ton generates its own revenue returns when materials are sold: Year 1 ton = 120% return, Year 2 ton = 121% return, Year 3 ton = 122% return, etc. up to Year 10 ton = 129% return. Over 10 years, the cumulative returns from all 10 tons create significant net positive cash flow.

Total Advantage: Avoided traditional costs for 10 tons (escalating 5.2% annually) + Net cumulative revenue from processing 10 tons through Circular Advantage = Substantial cumulative benefit over 10 years

Current Waste Industry Model

Year 1 Cost (Weighted Avg: Landfill + WTE + Recycling Tipping)
-$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 Advantage Model

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

Result: What you paid as a Pregenesis Fee returns to you as manufacturing revenue—effectively converting your waste stream into a profit center.

400 Tons Per Day Analysis (146,000 tons annually)

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 Traditional Costs: The money you would have spent on weighted average disposal fees (Landfill + WTE + Recycling tipping fees) escalating at 5.2% annually
  2. MINUS Pregenesis Fees Paid: Your $100/ton fee to Carbotura (escalating 2.5% annually)
  3. PLUS Revenue Returns Received: The 120-129% returns Carbotura pays back monthly starting month 13 for each year's tonnage

Formula: Total Advantage = (Traditional Costs Avoided) - (Pregenesis Fees Paid) + (Revenue Returns Received)

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

YearTraditional CostsPregenesis FeesRevenue ReturnsTotal Advantage
Year 1-$36.50M-$14.60M+$17.52M+$39.42M
Advantage = $36.50M (avoided) - $14.60M (paid) + $17.52M (returned) = +$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 (returned) = +$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 (returned) = +$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 (returned) = +$1.34B

Balance Sheet Benefits

Beyond immediate cash flow, the Circular Advantage program transforms your entire financial position

From Long-Term Liability to Long-Term Asset

Traditional Balance Sheet Impact

Long-Term Waste Liability

Waste represents an ongoing operational expense with no offsetting value. Your waste stream creates perpetual negative cash flow that compounds over time with inflation escalation.

Hidden Long-Term Costs

Traditional 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 waste 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 Advantage Balance Sheet Impact

Long-Term Feedstock Revenue Asset

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

Zero Long-Term Liability

Circular manufacturing eliminates all long-term environmental liability. No post-closure obligations, no remediation risks, no expansion costs, no facility replacement requirements. Your waste liability is completely eliminated and replaced with asset value.

Contractual Revenue Receivables

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

Financial Risk Mitigation

Long-term contracts with escalating revenue returns provide cost certainty and inflation protection. Carbotura bears all operational, regulatory, and market risk—you receive only the upside through guaranteed revenue sharing.

The Balance Sheet Transformation

Traditional waste management converts your cash into environmental liability. Circular Advantage converts your waste into financial assets.

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

Asset Creation

Revenue share 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

Ready to Transform Your Waste Stream?

The Circular Advantage program works for organizations generating municipal solid waste, commercial and industrial waste, manufacturing byproducts, and mixed waste streams.

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

The Bottom Line

The Circular Advantage program transforms waste management from a cost center into a profit center

Financial returns that exceed your initial payments

Environmental impact that supports sustainability commitments

Balance sheet benefits through asset creation and positive cash flow

Competitive positioning as a circular economy leader

Traditional waste management pays to eliminate your waste.

Circular Advantage pays you back—with a premium—while eliminating environmental impact.