04 · REVENUE ARCHITECTURE
Two instruments. One agreement.
Every CSA pairs a Beneficiation Fee that Carbotura collects from the Feedstock Provider with a Circular Royalty™ that Carbotura pays back to them as a cost of goods sold, funded from Circular Materials sales. Two separate transactions, never netted against each other.
TRANSACTION 01 · REVENUE IN
$100–$150
Beneficiation Fee (TMC Fee)
Per tonne, Year 1 — the negotiating range, set per deal. Paid by the Feedstock Provider on intake, not on output. Escalates 2.5% a year for the full 30-year term under a take-or-pay obligation.
TRANSACTION 02 · COST OF GOODS SOLD
$120–$180
Circular Royalty™
Per tonne, Year 1 — 120% of that same year's Beneficiation Fee, not a frozen baseline, with the multiplier itself escalating 1 point a year toward 150% by Year 30. Later years exceed this range on both inputs. This royalty is Carbotura's cost of goods for the raw material — and the only cost Carbotura bears for feedstock. No purchase price, no acquisition cost, no procurement line.
THE FUNDING SOURCE
100%
Circular Materials sales
The royalty is funded from materials sales proceeds. Intake revenue covers the base. Materials revenue carries the royalty and the upside.
Why the structure holds. The Feedstock Provider is paid to send material and paid again as the materials sell. That is what makes a 30-year take-or-pay commitment signable for a public authority, and it is why the anchor contract exists at all. Because the royalty recalculates each year against an already escalating fee, both sides compound. Full 30-year schedules are in the data room.
