Oʻahu, Hawaiʻi — Circular Supply Proposal
A 30-year Circular Supply Agreement converts Oʻahu’s ~880 TPD of available manufacturing feedstock into a community royalty income stream from Year 2 — at zero City & County capital. One CSA structure.
What Oʻahu is committing to
Eight commitment categories at engagement stage. Four required. One subject to study. Three not elected.
§0 — Three Configuration Options
Y30: ~$21.6M. BBB–/Baa3 credit. City retains land.
Y30: ~$9.6M. BBB–/Baa3 credit floor. Symmetric Take-or-Pay.
The Beneficiation Fee and all Royalty streams are independent transactions — separate CSA obligations, never netted. All figures Phase Initial · 200 TPD · 73,000 TPY EST
- What Carbotura offers: BOO ACM facility 200 TPD. 100% CAPEX ($75M) financed by Carbotura. Zero community capital. One CSA: the City pays a Beneficiation Fee and receives a Circular Royalty™, with the Exogenesis™ Royalty available as an add-on.
- What the City & County commits: feedstock + Beneficiation Fee ($100/ton) + tax abatements. $0 capital co-investment.
- What the City & County receives: $120/ton Y2 → $8.76M/yr, escalating to $295/ton Y30 → $21.6M/yr.3M/yr, escalating to $132/ton Y30 → $9.6M/yr. All EST.
- Scale pathway: Phase Initial 200 TPD → Phase Medium 400 TPD → Phase Expanded 800 TPD. Each phase adds $57.5M CAPEX (Carbotura). Zero community capital at any phase.
- Decision window: WGSL closes March 2, 2028. Phase Initial COD Q1 2028 requires T0 by mid-2026. Authorize Joint Working Group phase by mid-2026.
§1 — Commercial Structure and Decision Window
B2G Circular Supply Agreement between the City & County of Honolulu (Public Authority) and Carbotura, Inc. Governs feedstock delivery, the Beneficiation Fee, royalties, BOO capital, and performance guarantees for a minimum 30-year initial term with perpetual continuation.
| Party | Commitment | Key Terms |
|---|---|---|
| City & County of Honolulu | Manufacturing feedstock delivery | 200 TPD Phase Initial minimum delivery threshold |
| Project site | City retains land, Carbotura acquires. | |
| Tax abatements | Manufacturing NAICS 31–33 — joint RPT commitment | |
| Beneficiation Fee | $100/ton Phase Initial, +2.5%/yr → Carbotura | |
| Carbotura, Inc. | BOO facility · 18-month Parent Performance Guarantee | 100% CAPEX. $75M Phase Initial. Zero community capital. |
| Royalty payment | Circular Royalty™ (A) or | |
| Phase Initial COD | Q1 2028 target (T0 by mid-2026) | |
| Exogenesis™ Royalty (if elected) | $50/ton WGSL mass, +1%/yr. Subject to Waste Characterization Study. |
WGSL closes March 2, 2028. Phase Initial COD Q1 2028 requires Joint Working Group phase authorization no later than mid-2026 — ~23 months from this engagement. T0 beyond Q3 2026 makes Phase Initial COD pre-March 2028 operationally implausible.
§1.3 — Circular Supply Agreement: Minimum 30 years from Phase Initial COD. Perpetual continuation: CSA continues past Year 30 unless terminated by Non-Renewal Notice, which may be served no earlier than Year 28 (24-month notice; Year 30 earliest exit).
Carbotura’s commitment is conditional on the ACM facility receiving and maintaining manufacturing classification. Applicable: NAICS 325180, 325998, 327992, 331110, 331314, 331492 (Sector 31–33). Regenesis™ is anoxic — mechanistically incompatible with combustion. Solid waste NAICS codes applied to the ACM facility triggers the RPT commitment — both parties commit to shift the classification to manufacturing.
§1.5 — CSA Structure
One Circular Supply Agreement, the same structure for every Feedstock Provider. The Exogenesis™ Royalty is an add-on available under it, subject to a Waste Characterization Study.
Rationale: (1) the City holds WGSL at Campbell Industrial Park, which positions ACM at the primary feedstock convergence point at zero cash consideration; (2) GASB 18 post-closure liability is extinguished at execution; (3) the Exogenesis™ Royalty is pending a Waste Characterization Study. Under the CSA the Circular Royalty™ reaches $295/ton by Year 30 on a receipts basis.
§2 — Deployment Architecture
§2.1 — Topology and Phase Configuration
Single-Site topology — one ACM facility location, truck-served, scaling from 200 TPD to 800 TPD at the P1 candidate site (Campbell Industrial Park, Kapolei).
| Phase | TPD | Modules | Annual Feedstock | Est. COD | CAPEX (Carbotura) |
|---|---|---|---|---|---|
| Phase Initial | 200 | 2 | 73,000 TPY | Q1 2028 EST | $75M STD |
| Phase Medium | 400 | 4 | 146,000 TPY | +18–24 mo post Initial | $132.5M total |
| Phase Expanded | 800 | 8 | 292,000 TPY | +18–24 mo post Medium | $247.5M total |
§2.2 — BOO Capital Architecture
Carbotura finances 100% of per-increment CAPEX through its proprietary modular capital architecture — structured exclusively as Advanced Circular Manufacturing finance (NAICS 31–33) and sized per 100 TPD increment. There is no community capital contribution, no community co-investment requirement, and no community exposure to construction cost overruns, financing market conditions, or facility operating performance at any phase.
Phase Initial at 200 TPD is fully supportable from IMMEDIATE streams: WGSL-bound MSW (~880 TPD available) + contaminated recyclables (~47 TPD). No third-party contract negotiation required for Phase Initial.
§2.4 — Site Candidate Analysis
Campbell Industrial Park is the Priority 1 ACM site candidate. Co-located with WGSL (~2 miles) and H-POWER (0.5 miles). Industrial I-2 zoning. State land authority. Existing enclosed delivery route requires zero modification for Phase Initial feedstock delivery.
Adjacent to H-POWER and WGSL
Large contiguous parcels
§3 — Economic Structure: Beneficiation Fee (TMC Fee)
Beneficiation_Fee = MAX($100, MIN($150, FWDC − $5))
Oʻahu FWDC: ~$103/ton EST
$103 − $5 = $98 → MAX($100,$98) = $100/ton (floor) STD
| Parameter | Value | Classification |
|---|---|---|
| Beneficiation Fee (floor applies) | $100/ton MOD | MAX($100,MIN($150,$98)) = $100 |
| Annual obligation Phase Initial Y1 | $7.30M/yr MOD | $100 × 73,000 TPY |
| Escalator | +2.5%/yr STD | Carbotura standard parameters |
| Year 10 fee / ton | ~$124.89 MOD | $100 × 1.025^9 |
| Year 30 fee / ton | ~$204.64 MOD | $100 × 1.025^29 |
The Beneficiation Fee is the City’s only financial obligation under the CSA. Exogenesis™ Royalty stacks on either A or B with no additional fee — see §4.1.
§4 — Royalty Structure
“Gross cost displacement and Circular Royalty™ cash flow are quantified separately. Both are independent financial effects of the CSA.” Beneficiation Fee and all Royalty streams are independent CSA obligations — never netted, offset, or combined in any table, chart, or prose.
§4.0 — Circular Royalty™
Months 1–12: City pays Beneficiation Fee ($100/ton), receives $0 Circular Royalty™.
Formula: Royalty(y) = (1.20 + 0.01·(y−2)) × $100 × 1.025^(y−2) per ton. Year 2 rate: 120%. Multiplier escalates +1pp/yr; fee base escalates 2.5%/yr independently.
| Year | Ben. Fee/ton → | Annual Fee (200 TPD) | Rate | Royalty/ton ← | Annual Royalty (200 TPD) |
|---|---|---|---|---|---|
| 1 | $100.00 | $7,300,000 | Pre-royalty | $0.00 | $0 |
| 2 | $102.50 | $7,482,500 | 120% | $120.00 | $8,760,000 |
| 5 | $110.38 | $8,057,750 | 123% | $132.46 | $9,911,210 |
| 10 | $124.89 | $9,116,700 | 128% | $155.96 | $11,385,080 |
| 20 | $159.87 | $11,670,150 | 138% | $215.24 | $15,712,520 |
| 30 | $204.64 | $14,938,770 | 148% | $295.44 | $21,567,120 |
Circular Royalty™ figures are stated on a receipts basis: payment runs 13 months in arrears, so the amount shown against a Year is earned on the previous Year’s delivered tonnage. The Beneficiation Fee is shown on a current-year basis, as it is paid in the Year shown. The two are independent gross transactions and are not netted.
All figures MOD at 200 TPD / 73,000 TPY. Beneficiation Fee and Circular Royalty™ are independent transactions — never netted.
“At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee on a per-ton basis.”
“Circular Royalty™ payments begin 13 months after corresponding Beneficiation Fee payments and ramp to full run-rate on a rolling basis.”
§4.1 —
| Parameter | Value |
|---|---|
| Beneficiation Fee | $0 — no outflow under the CSA |
| Consideration | — project site deeded to Carbotura at execution (irrevocable) |
| Royalty Year 2 | $100/ton → $7,300,000/yr at 200 TPD MOD |
| Escalation | +1%/yr compound: $100 × 1.01^(y−2) STD |
| Year 30 royalty | $132.16/ton → $9,647,680/yr MOD |
| Take-or-Pay | Symmetric bilateral — $100/ton both directions |
| Credit requirement | None — asset-collateralized |
§4.1 — Exogenesis™ Royalty (Universal Bonus, Subject to Study)
The Exogenesis™ Royalty is a structured option for discussion — not a commitment. Becomes a CSA element only after: (1) Waste Characterization Study confirming WGSL extractable mass economics; (2) qualifying asset confirmation; (3) mutual agreement at execution.
WGSL (92-460 Farrington Hwy, Kapolei; LUC closure 2028-03-02; GASB 18 liability unquantified) is confirmed eligible. All post-closure care obligations would transfer to Carbotura at execution if elected.
| Parameter | Value |
|---|---|
| Bonus royalty Year 2 | $50/ton WGSL mass extracted by Exogenesis™ |
| Escalation | +1%/yr compound: $50 × 1.01^(y−2) STD |
| Year 30 | $66.08/ton MOD |
| Incremental outflow | $0 — no additional fee |
| Stacking | Independent transaction on top of primary royalty — never combined |
| Exogenesis™ deployment | 3–7 years post Phase Initial COD; 24-month notice before commencement |
| CERCLA floor/step-up | $25/ton if CERCLA contamination; $75/ton if 7-yr remediation long-stop missed |
| GASB 18 extinguishment | All WGSL post-closure obligations transfer to Carbotura at CSA execution |
| Activation conditions | Waste Characterization Study + qualifying asset confirmation + mutual agreement |
§5 — Risk Register
| Risk | Key Driver | Bears It | Mitigation | Residual |
|---|---|---|---|---|
| FWDC verification | $103/ton estimated | Shared | CFS pins FWDC to City budget actuals | Low — floor $100 regardless |
| Technology performance | RC3 baseline | Carbotura | BOO + Parent Performance Guarantee | Low for City |
| Timeline slippage | T0 delay → COD slips past March 2028 | Both | T0 by mid-2026 eliminates risk | High if T0 > Q3 2026 |
| CONDITIONAL stream access | H-POWER ash requires Reworld™ contract mod | City | Phase Initial on IMMEDIATE only | Low Ph. Initial; medium Ph. Medium |
| NAICS classification | ACM classified as solid waste | Both | RPT (§1.4) protects both parties | Medium — active City permitting coordination required |
| PFAS regulatory | EPA PFAS CERCLA adds WGSL liability | City (WGSL) | the Exogenesis™ add-on extinguishes WGSL PFAS liability; ACM 1,200°C+ destroys PFAS | Low for ACM; medium for WGSL |
| Makaiwa Hills fast-track | Act 73 amendment enables alternative landfill | City | ACM creates royalty regardless of landfill siting | Low |
| Output market risk | Synthetic graphite, graphene, mineral markets shift | Carbotura | Circular Materials diversification | Low for City |
§6 — Timeline
| Milestone | Target Date | Notes |
|---|---|---|
| T0 — Joint Working Group phase authorization | Mid-2026 EST | Hard window. T0 > Q3 2026 makes Phase Initial COD pre-March 2028 implausible. |
| Joint Working Group phase | Q4 2026 EST | Waste Characterization Study runs concurrently. |
| CSA execution | Q1 2027 EST | Election locked. Site deed ( |
| Permitting | Q1–Q3 2027 | Manufacturing NAICS classification applied. |
| Construction commencement | Q2 2027 EST | Carbotura modular construction at P1 site. |
| Phase Initial COD | Q1 2028 EST | First feedstock delivery. Pre-royalty begins. |
| WGSL closure (regulatory) | March 2, 2028 VER | LUC D&O. Fixed. ACM must be operational by this date. |
| First royalty payment | ~April 2029 EST | 13 months post Q1 2028 COD. |
| CSA minimum term end | ~Q1 2058 | Perpetual continuation unless Non-Renewal Notice served. |
§7 — Community Value Stack
City & County fiscal effects (Beneficiation Fee obligations and royalty receipts) and regional economic impacts are distinct categories, shown in separate sub-sections.
§7.1 — Fiscal Effects
| Fiscal Effect | Direction | Phase Initial | Phase Expanded |
|---|---|---|---|
| Beneficiation Fee paid | → Carbotura | $7.30M/yr Y1 MOD | $14.60M/yr Y1 |
| Circular Royalty™ received | ← Carbotura | $8.76M/yr Y2; $21.6M/yr Y30 MOD | $17.52M/yr Y2 |
| ← Carbotura | $7.30M/yr Y2; $9.6M/yr Y30 MOD | $14.60M/yr Y2 | |
| Exogenesis™ Royalty (if elected) | ← Carbotura | $50/ton when active STUDY | $50→$66/ton Y30 |
| Avoided disposal cost (gross cost displacement) | Cost avoided | ~$7.52M/yr EST | ~$15.0M/yr |
| GASB 18 extinguishment (Exogenesis™) | Balance sheet | NULL DATA GAP | NULL |
| Community capital | None | $0 | $0 |
§7.2 — Regional Economic Effects
| Effect | Phase Initial | Phase Expanded |
|---|---|---|
| Direct FTE | ~50 MOD | ~200 MOD |
| Indirect/induced jobs | ~150 MOD | ~600 MOD |
| Annual regional economic impact | ~$16M/yr MOD | ~$64M/yr MOD |
| Carbon impact (tCO₂e/day) | −761 to −783 t/day | −1,522 to −1,566 t/day |
| Ultrapure water (gal/day) | ~43,500+ | ~87,000+ |
| PFAS elimination | Complete elemental dissociation at 1,200°C+ — designed for | |
§8 — Why This Works in Oʻahu
- The hard deadline creates unique structural urgency. WGSL’s March 2, 2028 closure is a binding LUC D&O. ACM is the only near-term option converting the displacement problem into a royalty income stream.
- Feedstock is already concentrated at the candidate site. H-POWER and WGSL are co-located at Campbell Industrial Park. ~880 TPD flows the same route that would serve an ACM facility at P1. No new collection infrastructure required.
- Phase Initial requires no third-party negotiation. 200 TPD fully supportable from IMMEDIATE streams. No Reworld™ contract, PVT Land arrangement, or WWTP biosolids contract needs modification before Phase Initial COD.
- WGSL’s GASB 18 post-closure obligation is an unquantified balance sheet exposure. Carbotura provides EIL, PLL, and Post-Closure Performance Bond.
- Island premium makes ACM economics durable. Geographic isolation eliminates competitive disposal alternatives. The Beneficiation Fee floor ($100/ton) is competitive with H-POWER ($91/ton gate rate) and well below off-island shipping ($99/ton). Royalty returns exceed the fee from Year 2 under both options.
- Beneficiation Fee calibrated to Oʻahu’s verified disposal cost data. At FWDC ~$103/ton, formula produces $100/ton (floor). No premium over current all-in system cost for Phase Initial feedstock disposition under ACM.
All State B values for EIR. EIR models the CSA by default. JWG confirmation required for ESTIMATED values.
| Parameter | Value | Type |
|---|---|---|
| Phase Initial TPD / TPY | 200 / 73,000 | MOD |
| Phase Medium TPD | 400 | STD |
| Phase Expanded TPD | 800 | STD |
| FWDC planning basis | ~$103/ton | EST |
| Beneficiation Fee Year 1 | $100/ton (floor) | MOD |
| Beneficiation Fee escalator | +2.5%/yr | STD |
| Circular Royalty™ Year 2 | $120/ton | MOD |
| Circular Royalty™ Year 30 | $295.44/ton | MOD |
| $100/ton | STD | |
| $132.16/ton | MOD | |
| Exogenesis™ Royalty Year 2 (if elected) | $50/ton | STD |
| Annual Beneficiation Fee Phase Initial Y1 (A) | $7,300,000 | MOD |
| Annual Circular Royalty™ Phase Initial Y2 (A) | $8,760,000 | MOD |
| Annual Circular Royalty™ Phase Initial Y30 (A) | $21,567,120 | MOD |
| Gross cost displacement per ton | ~$103/ton | EST |
| Annual gross cost displacement Phase Initial | ~$7,519,000/yr | EST |
| Phase Initial COD target | Q1 2028 | EST |
| First royalty payment | ~April 2029 | EST |
| WGSL closure (hard constraint) | March 2, 2028 | VER |
| CSA minimum term | 30 years from Phase Initial COD | STD |
| Accounting standard | GASB | VER |
| EIR models | ||
| Exogenesis™ qualifying asset | WGSL — subject to Waste Characterization Study | STUDY |