CARBOTURA
City of Phoenix — Executive Briefing · Stage 1 of 7 · v1.0
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COMMERCIAL INTEREST DISCLOSURE
This document is prepared by an interested party. Carbotura Inc. has a direct financial interest in the City of Phoenix adopting this proposal. All projections are illustrative and produced by Carbotura — not by an independent analyst or public body. This is not legal, financial, or professional advice. Seek independent advice before any decision.

Carbotura EIR Series · Arizona · 2025–26 · Stage 1 of 7

ACM Partnership Briefing
City of Phoenix

A high-level summary of Phoenix's five structural challenges in waste and disposal management — and the Advanced Circular Manufacturing partnership opportunity at the Resource Innovation Campus. Full analysis is in the two source documents below.

JurisdictionCity of Phoenix, Maricopa County, AZ
Population1,673,164 (July 2024)
Regulatory AuthorityADEQ · SB 1156 (2021) Mfg Permit
CurrencyUSD · GASB Accounting
PublishedMarch 2026
Stage1 of 7

Produced by Carbotura Inc. as an intelligence and analysis resource. Carbotura has a direct commercial interest in the partnership described herein — disclosed here and throughout. All financial projections are illustrative, based on Carbotura's standard deployment model applied to publicly available Phoenix data, and are not audited. This is not legal, financial, engineering, or procurement advice. The City of Phoenix should obtain independent professional advice in each discipline before executing any agreement. Corrections: media@carbotura.com

$154/ton
Blended disposal cost (FWDC)
$20.8M
Enterprise fund shortfall FY25–26
$2B+
Total contingent liability
36%
Diversion rate vs. 50% target
$0
Phoenix CAPEX required
$1.96B–$9.8B
30-yr projected community benefit

Five Structural Findings

Each finding below is documented in full in the source reports. The ACM partnership addresses all five simultaneously — through a single 30-year Circular Offtake Agreement (COA) requiring zero capital from the City of Phoenix.

Finding 1 — Disposal Cost Trap
$154/ton today becomes $863/ton by Year 30 at status quo

Phoenix's blended disposal cost escalates at ~5.9%/year. At that rate, the same ton costs $274 by Year 10 and $863 by Year 30 — with zero financial return at any stage. The ACM TMC Fee of $150/ton escalates at 1%/year only, permanently decoupling Phoenix from this compounding cost curve from Day 1.

Finding 2 — Enterprise Fund Crisis
$20.8M structural deficit: a rate increase buys 3 years; ACM buys 30

Staff costs up 32%, vehicles up 52%, construction up 40% since 2020. The proposed 45% rate increase (≈+$130–175/household/yr) closes the gap temporarily — then the same gap reopens as costs compound. The Circular Royalty™ ($16.4M/yr at 400 TPD from Year 2) delivers a structural fix, not a patch.

Finding 3 — The Liability Wall
$2B+ in contingent liabilities — none resolved by a rate increase

PFAS/biosolids ($50M–$200M+, accelerating under EPA's April 2024 MCL rules), CCR coal ash ($50M–$500M+), WQARF/Superfund sites ($500M–$1B+), and COPERS pension deficit ($1.32B, 74.65% funded). ACM title transfer stops forward PFAS accrual and eliminates new post-closure obligations for converted feedstock streams.

Finding 4 — Capacity Gap
SR-85 closure timeline undisclosed — and the duopoly controls what comes next

Phoenix generates ~1 million tons/year growing at 3–5%/yr. SR-85 Landfill closure timeline is not publicly disclosed. The disposal market is controlled by Republic Services and Waste Management (combined market share >83%, HHI ~3,954 — "Highly Concentrated" per DOJ/FTC). ACM at the RIC breaks this dependency entirely.

Finding 5 — Diversion Target Gap & Partnership Opportunity
50%-by-2030 has no programmatic pathway — except through SB 1156

Arizona's preemption architecture (ARS §9-500.38 et al.) prohibits mandatory recycling programs, organic waste mandates, pay-as-you-throw pricing, and bag bans. Phoenix's Reimagine Phoenix target of 50% diversion by 2030 has stalled at ~36% with no identified mechanism to close the gap. Arizona SB 1156 (2021) reclassifies ACM as manufacturing — removing feedstock from the solid waste stream by statute at delivery. A 1,400 TPD ACM facility at the RIC processes 511,000 tons/year, contributing approximately 31 percentage points toward the target. Carbotura finances 100% of the facility. Phoenix's contribution is feedstock and a 30-year COA.

Governing Language Principle Process design statements are factual. Outcome claims use conservative framing — "designed for," "near-zero," and "engineered to" — wherever independent verification at full scale is still ahead. All financial figures are illustrative projections based on the RevCon™ 3 conservative baseline applied to publicly available Phoenix data. Not audited. Not a contractual commitment.

Three-Tier Configuration Overview

Carbotura proposes three build tiers at the Resource Innovation Campus (RIC), 27th Avenue Corridor. All tiers use the same Recyclotron shell — module additions bring each tier online sequentially. Phoenix selects tier at Term Sheet (Stage 3).

Configuration Capacity Carbotura Investment TMC Fee (Yr 1) Circular Royalty™ (Yr 2) Direct Jobs 30-Yr Community Benefit
Minimum
400 TPD
146,000 tons/yr $240M $13.7M/yr $16.4M/yr 156 FTE ~$1.96B
Tier 1
1,400 TPD
511,000 tons/yr $790M $78.7M/yr $16.4M→$99.3M/yr by Yr 10 546 FTE ~$6.86B
Tier 2
2,000 TPD
730,000 tons/yr $1.12B $112.4M/yr $16.4M→$141.9M/yr by Yr 10 780 FTE ~$9.80B

Illustrative projections — Carbotura RevCon™ 3 baseline applied to Phoenix FWDC $154/ton. TMC Fee $150/ton escalating 1%/yr. Circular Royalty™ = 120% × prior-year TMC Fee, beginning 13 months after first feedstock delivery. 30-yr benefit = Circular Royalty™ received + disposal cost avoided − TMC Fee paid. Not a contractual commitment.

Full Analysis — Source Documents

This briefing is a summary only. All detailed analysis, source citations, confidence ratings, financial modelling, public/resident impact analysis, and accountability pathways are in the two documents below.

Intelligence Report
Carbotura EIR Series · Arizona · 2025
Phoenix Metro Waste Industry Intelligence Report 2025

Structural analysis of Phoenix's waste management landscape — drawn from public records, SEC filings, and regulatory disclosures. No commercial proposal content.

S2–S3 · Industry Actors & Market Structure
S7 · Market Concentration (HHI ~3,954)
S8 · Infrastructure Inventory (SR-85, RIC)
S9 · Pain Points (Enterprise Fund Crisis)
S10 · Regulatory Capture (ARS preemption)
S11 · Goals vs. Reality (Reimagine Phoenix)
S12 · Cost Analysis ($154/ton FWDC)
S13 · Liability Exposure (PFAS, CCR, WQARF, COPERS)
Partnership Proposal
Carbotura ACM · Stage 1 of 7 · v3.0 · March 2026
Phoenix ACM Economic Impact Report & Stage 1 Proposal

Carbotura's full Stage 1 proposal. All financial projections are illustrative and produced by the interested party. Includes accountability contacts and source bibliography.

SQ1–SQ5 · Status Quo Findings & Corrections
EIR1–EIR7 · Economic Impact Analysis
P0–P5 · Three-Tier Proposal (RIC site)
P4b · Public & Resident Impact
App. A–D · Full financial model (10-yr P&L)
App. E · ACM Glossary (v3.7)
App. F · Source Bibliography (23 sources)

Engagement Pathway

STAGE 1

Partnership Proposal YOU ARE HERE

This briefing and the two source documents constitute Stage 1. No financial commitment or contract required from the City of Phoenix.

STAGE 2

Letter of Intent (LOI)

Non-binding expression of interest. Initiates due diligence, legal review, and site assessment at the RIC. Estimated: 30–60 days from City Council authorisation.

STAGE 3–4

Term Sheet → Circular Offtake Agreement (COA)

Tier selected. Commercial terms agreed and executed. 30-year COA governs TMC Fee, Circular Royalty™, and title transfer. City Attorney and independent advisors should be engaged at Stage 3 at the latest.

STAGE 5

Permitting — ADEQ Manufacturing Permit

Carbotura files manufacturing permit application under SB 1156 (2021) — NAICS 325xxx/331xxx classification. No ADEQ solid waste facility plan required. Target: permit issuance within 12 months of application.

STAGE 6–7

Financial Close → Ground Break → COD

Carbotura SPV closes financing and breaks ground at the RIC. 18-month construction. First feedstock delivery initiates 13-month Circular Royalty™ clock. Target COD: Q2 2027.

Contacts Carbotura partnership & media enquiries: media@carbotura.com · City of Phoenix Public Works: phoenix.gov/publicworks · Phoenix City Council public comment: phoenix.gov/council · ADEQ (permitting & environmental): azdeq.gov
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