§1.0Regulatory Predicate Transition (RPT)

§1.1Commercial Structure

The 30-year CSA is a royalty-producing asset that replaces a waste liability on Anchorage's books.

Beneficiation Fee + Circular Royalty™ — with the Exogenesis™ Royalty bonus available to stack alongside it.

The proposed instrument is a 30-year Circular Supply Agreement (CSA) between Carbotura and the Municipality of Anchorage (anchor counterparty), with optional CSA addenda for Mat-Su and Kenai Peninsula Borough partnership entry under separately negotiated instruments. Under the CSA, the Municipality of Anchorage becomes the manufacturing feedstock supplier to the ACM facility; Carbotura is the manufacturer that material stream transfers to under the CSA. This is a supply arrangement, not a service contract and not a procurement instrument.

Carbotura's commitments under the CSA

• Build, own, operate, and maintain the ACM facility for 30 years
• Fund 100% of capital construction (BOO structure)
• Pay Circular Royalty™ equal to 120% of contemporaneous Beneficiation Fee per ton, with +1pp/year escalator, paid 13 months in arrears on a rolling monthly basis
• Deliver designed environmental performance (carbon-negative net operations; near-zero landfill diversion of committed streams)
• Commit to the Regulatory Predicate Transition (RPT) as a joint pathway — both parties advance manufacturing classification alongside site permitting

Counterparty's commitments under the CSA

• Direct committed feedstock streams to the ACM facility
• Transport feedstock to the ACM facility — under existing collection contracts, rerouted from the current landfill destination (ARL / CTS gates) to Carbotura's site. No new collection infrastructure or fleet obligation; the change is a routing swap
• Pay Beneficiation Fee per ton delivered ($100/ton base, 2.5%/year escalator) — the CSA
• Honor 30-year CSA term subject to standard force majeure and cure provisions

§2.1Phase Configuration Table

Module math: ceil(TPD/100). All CODs anchored to T0 = Q2 2026 per Carbotura standard deployment schedule.

§2.2BOO Capital Structure

Zero counterparty capital expenditure. Zero construction debt on County books. Zero operating liability post-COD. Anchorage's sole financial obligation under the CSA is the per-ton Beneficiation Fee. Carbotura funds 100% of project cost through institutional capital under separate SPV structuring. The County's general fund, debt capacity, bonding authority, and credit rating are unaffected.

§2.3Feedstock Stream Coverage by Phase

§2.4Site Candidate Analysis

Three priority zones identified within the Municipality of Anchorage and the immediate Glenn Highway corridor. Final site selection deferred to Deployment Study geotechnical, zoning, and environmental review.

§2.5Finding: Phase Initial Feedstock Sufficiency

FWDC planning basis: ~$92/ton blended — Estimated. Derived from the Municipality’s own two published gate rates: Anchorage Regional Landfill $87.11/ton and Central Transfer Station $101.00/ton. Mat-Su Borough and Kenai Peninsula Borough gate schedules are NOT ESTABLISHED from public sources and are excluded from the Phase Initial basis. Collection and transport are contracted separately (Alaska Waste) and are not included in this $92/ton figure — the true fully-loaded cost is therefore higher, making this basis conservative. Full FWDC confirmation deferred to Deployment Study.

Beneficiation Fee formula: MAX($100, MIN($150, FWDC − $5))

ESTIMATED — derived from FWDC planning basis and Carbotura standard parameters. Final TMC schedule confirms at CSA execution following Deployment Study FWDC verification.

Royalty(m+13) = TMC(m) × Royalty_Rate(m)

Fiscal Period Distinction

Year 1 is negative because the $100/ton canonical-floor Beneficiation Fee sits above the ~$92/ton avoided gate cost and no Royalty has yet accrued. From Year 2 the Circular Royalty™ inverts the position and its widening spread compounds year over year.

Hard external deadline framing: No regulatory hard deadline applies. Council Authorization Deadline = Phase Initial COD − 24 months = Q2 2026. Slippage past Q4 2026 moves Phase Initial COD into 2029. Deferral cost: each 6-month slip ≈ $9M Year-2 Royalty foregone (Phase Initial scale).

§7.1Municipal Fiscal Effects

• Beneficiation Fee paid (outflow): Phase Initial Year 1 at $14.60M annual (146,000 TPY × $100/ton); escalates 2.5%/yr and with phase ramp.
• Circular Royalty™ received (inflow): $0 Year 1 (13-month lag); ~$17.52M Year 2 (Phase Initial); ~$54M in the first full Royalty year at Phase Expanded, rising to ~$134M by Year 30.
• Avoided disposal cost (cost displacement, not treasury inflow): ~$13.43M Year 1 → ~$40M+ annual at Phase Expanded (Year-1 cost basis).
• 30-year combined fiscal benefit (full Phase Expanded with Tier 3 partnerships, 3× Phase Initial basis): ESTIMATED ~+$2.7B
• Capital obligation: $0.

§7.2Regional Economic Effects

These flow to the Anchorage Bowl economy — not to the Municipal treasury.

Plus property tax base addition of $75M–$1.17B (phase-dependent capital improvement) for the host jurisdiction.

1. Volume alignment. the Municipality of Anchorage alone generates ~400 TPD — exactly matching Phase Initial design capacity. The 50-mile catchment plus Tier 3 universe (~5,000 TPD inferred resource) provides the scaling pathway to 1,200 TPD without any single counterparty being load-critical to Phase Expanded.

2. Infrastructure alignment. Anchorage's Glenn Highway position is the structural logistics anchor for the entire Anchorage Bowl. Priority 1 site (North Anchorage Glenn Highway Corridor) optimizes inbound feedstock haul from any the Municipality of Anchorage or Tier 3 origin and is co-located on the same corridor already concentrating regional waste flow toward the Anchorage Regional Landfill (SWS-owned).

3. Contract timing alignment. No regulatory hard deadline forces an externally driven schedule. Phase Initial commits no partnership negotiation, allowing the Municipality to authorize on its own calendar. The decision window is structural — driven by regional ACM siting capacity and Solid Waste Services (SWS)' escalation trajectory.

4. Policy alignment. The Regulatory Predicate Transition (RPT) (§1.0) anchors the engagement to manufacturing classification under NAICS 325180, 325998, 327992, 331110, 331314, 331492. Alaska ADEC has not issued state-level rules incompatible with this classification, and manufacturing classification (NAICS 31–33) is the controlling federal basis.

5. Regulatory driver. Federal RCRA classification timing creates a window for first-mover communities under the RPT. Solid Waste Services (SWS)' three-of-four-landfill concentration in the catchment creates structural counterparty-risk exposure that intensifies with each annual rate escalation cycle.

6. Economics specificity. Beneficiation Fee at $100/ton (canonical floor) sits between the Municipality’s two published gate rates — ARL $87.11/ton and CTS $101.00/ton — so the fee is redirected existing spend, not new cost. Calibrated to this community's actual disposal-cost trajectory — not a generic figure.

This document defines the commercial structure, deployment architecture, fiscal terms, and community value of the proposed 30-year Circular Supply Agreement with the Municipality of Anchorage, Alaska. Each parameter is classified by confidence tier. Final values confirm at the Deployment Study following Council authorization.

Confidence tiers: Locked = user-confirmed or contractually standard Verified = sourced to named public record Estimated = Carbotura-modeled with stated methodology Provisional = pre-Term Sheet-Study placeholder.