A 30-year Build-Own-Operate agreement converts Rhode Island's 895,000 TPY of manufacturing feedstock into a net revenue-positive fiscal position from Year 2 — with zero state capex, zero operating liability, and a 2027 hard deadline already inside the procurement window.
§0 — What This Means
- What is being offered. Carbotura proposes a 30-year Circular Operating Agreement (COA) under a full Build-Own-Operate structure. Carbotura designs, finances, constructs, and operates the ACM facility at no cost to the State. Rhode Island's sole financial commitment is the TMC Fee — a per-ton payment for feedstock conversion that is designed to be at or below the State's current blended disposal cost.
- What the State commits. Feedstock delivery under existing RIRRC statutory aggregation mechanisms; authorization of a Community Feasibility Study (3 months); designation of a Priority 1 site candidate for permitting. No capital appropriation required.
- What the State receives. Gross cost displacement from Day 1 (TMC replaces higher blended disposal costs). Circular Royalty payments beginning 13 months after Phase Initial operations commence — structured to exceed the TMC Fee per ton at steady state. Employment: 120 direct FTE at Phase Initial; 360 direct FTE at Phase Expanded. ESTIMATED
- The hard deadline. The 2027 expiry of the Synagro Technologies contract at the Woonsocket Thermal Conversion Facility is a procurement-forcing event. A Community Feasibility Study authorized in Q2 2026 places Phase Initial COD at Q2 2028 — before the 2027 Woonsocket crisis requires out-of-state sludge displacement at $160+/ton for 30+ municipalities.
- Net fiscal position. Rhode Island moves from a -$100/ton position in Year 1 (TMC only, pre-royalty) to a +$17.50/ton net positive position in Year 2 (royalty exceeds TMC). By Year 10, net position reaches approximately +$31/ton. Gross cost displacement is quantified separately from Circular Royalty cash flow. Full net fiscal position reflects both.
Executive Implications
- Authorization of a Community Feasibility Study is the only near-term decision required. It triggers no capital commitment and produces the verified cost and site data needed to advance the COA.
- The 2027 Synagro contract expiry is a hard deadline, not an estimate. Rhode Island has less than 24 months to contract an alternative sludge disposal pathway before municipalities face forced out-of-state displacement at $89–160/ton.
- Rhode Island's combustion-based WTE prohibition has eliminated every conventional incineration alternative for four decades. ACM — classified NAICS 335991/325120/331410 (manufacturing), not NAICS 562213 (solid waste combustion) — is not subject to the prohibition. MCR's anoxic, oxygen-free process is mechanistically incompatible with combustion. RIDEM reviews ACM under manufacturing permitting. An EPA RCRA petition (filed February 2026) further establishes federal manufacturing classification.
- At Phase Expanded, the ACM facility processes 396,000 TPY — diverting 44% of identified feedstock from the Central Landfill. RIRRC's own studies project this level of diversion extends landfill life by 15+ years. ESTIMATED
§1 — Commercial Structure and Decision Window
§1.1 — Circular Operating Agreement Structure
| Term | Value | Notes |
|---|---|---|
| Agreement type | Build-Own-Operate (BOO) | Carbotura owns and operates all capital assets |
| Term | 30 years | From first feedstock delivery date |
| State capital obligation | $0 | Zero capex; Carbotura arranges full project financing |
| State operating obligation | $0 | Zero operating liability beyond feedstock delivery |
| State's financial instrument | TMC Fee — per ton delivered | $100/ton at Phase Initial; escalates 2.5%/year |
| State's financial return | Circular Royalty — per ton processed | Begins Month 13; 120% of Year 1 TMC; escalates +1pp/year |
| Minimum annual commitment | Phase Initial: 132,000 TPY | Based on 400 TPD × 330 operating days |
| Products output | Graphite, graphene precursors, hydrogen, ultrapure water | All industrial outputs; IP owned by Carbotura |
| Residual stream responsibility | Carbotura | Carbotura manages all residual/non-convertible fraction |
§1.2 — Decision Window
⚑ Decision Window — Closes Q2 2026
The Synagro Technologies contract at the Woonsocket Thermal Conversion Facility expires in 2027. Woonsocket City Council has voted unanimously to close the incinerator. To achieve Phase Initial COD prior to full 2027 sludge displacement, a Community Feasibility Study must be authorized no later than Q2 2026. Under Carbotura standard deployment schedule: Feasibility Study (T0 to T0+3 months) → construction start (T0+6 months) → Phase Initial COD (T0+24 months). A T0 of April 2026 places COD at April 2028 — before the Woonsocket system collapses entirely.
| Procurement Step | Duration | No Later Than | Risk if Delayed |
|---|---|---|---|
| Authorize Community Feasibility Study | 1 vote | Q2 2026 | Misses pre-2027 COD window; sludge displacement to $160+/ton begins |
| Feasibility Study completion | 3 months | Q3 2026 | — |
| Site designation + permitting initiation | 6 months | Q4 2026 | — |
| COA execution + construction start | T0+6 months | Q4 2026 | — |
| Phase Initial COD | T0+24 months | Q2 2028 | — |
| First Circular Royalty payment | T0+37 months | Q3 2029 | — |
§2 — Deployment Architecture
§2.1 — Phase Configuration
| Phase | TPD | Modules | Annual Throughput | % Addressable | COD | CapEx |
|---|---|---|---|---|---|---|
| Phase Initial | 400 | 4 × 100 TPD | 132,000 TPY | 14.8% | T0 + 24 months | $247.5M |
| Phase Medium | 800 | 8 × 100 TPD | 264,000 TPY | 29.5% | T0 + 42 months | $477.5M cumul. |
| Phase Expanded | 1,200 | 12 × 100 TPD | 396,000 TPY | 44.2% | T0 + 60 months | $707.5M cumul. |
Module math: ceil(deployment_tpd / 100). CapEx: $75M first 100 TPD module + $57.5M per additional 100 TPD module. Operating days: 330/year. All CapEx funded by Carbotura — zero state obligation.
§2.2 — BOO Capital Structure
Zero State Capital Obligation
Under the BOO structure, Carbotura provides 100% of project capital and operating funding. Rhode Island's sole financial obligation is the TMC Fee — a per-ton payment for feedstock conversion. There is no state capex, no construction debt, no operating liability, and no minimum throughput guarantee beyond what the statutory RIRRC delivery mandate already ensures for the MSW stream.
| Capital Item | Who Provides | Phase Initial ($247.5M) | Phase Expanded ($707.5M) |
|---|---|---|---|
| Equity (20%) | Carbotura / sponsors | $49.5M | $141.5M |
| Grant — conservative 15% | Federal / state programs | $37.1M | $106.1M |
| Debt (65%) | Project finance lenders | $160.9M | $459.9M |
| State of Rhode Island | — | $0 | $0 |
§2.3 — Feedstock Stream Coverage by Phase
| Stream | Phase Initial | Phase Medium | Phase Expanded | Access Status |
|---|---|---|---|---|
| MSW (municipal solid waste) | ✓ Primary | ✓ Continued | ✓ Continued | IMMEDIATE |
| Wastewater Sludge (biosolids) | ✓ Co-primary | ✓ Continued | ✓ Continued | IMMEDIATE |
| Incinerator Residue Ash (IRA) | — | ✓ Added | ✓ Continued | ACCESSIBLE |
| Coal Ash (legacy) | — | Partial | ✓ Full | CONDITIONAL |
§2.4 — Site Candidate Analysis
Priority 1 Finding
The RIRRC Johnston Campus Zone is the Priority 1 site candidate. It offers zero MSW transport cost (feedstock already aggregates on campus by state law), existing infrastructure synergies (power, leachate treatment, gas management), and direct adjacency to the largest single-source feedstock hub in Rhode Island. No other site achieves co-location at this level without additional transport cost.
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CANDIDATE ZONES — 3 SITES
P1
Johnston — RIRRC Campus Zone
Acreage:~30–45 acres (western campus / MRF adjacency)
Zoning:Industrial utility / quasi-public waste facility
Authority:RIRRC (quasi-public; RIDEM oversight)
Co-location:Zero MSW transport — feedstock aggregates on-campus by law
To RIRRC landfill:~0.3 mi (adjacent)
To Field's Point WWTF:~11.5 mi (~18 min via I-295)
To Woonsocket TCF:~13 mi (~19 min via I-295)
Key consideration:RIRRC site agreement + RIDEM coordination required; Superfund campus status
P2
Port of Providence — ProvPort Industrial Zone
Acreage:~15–30 acres (Allens Ave / Terminal Rd corridor)
Zoning:Marine industrial / waterfront heavy industrial
Authority:ProvPort / City of Providence Economic Dev.
Co-location:Direct adjacency to NBC Field's Point WWTF (RI's largest sludge generator)
To RIRRC landfill:~9.5 mi (~14 min via I-95)
To Field's Point WWTF:~0.5 mi (adjacent)
To Woonsocket TCF:~21 mi (~28 min via I-95/I-295)
Key consideration:Environmental justice / air quality sensitivity near residential areas; waterfront permitting complexity
P3
Quonset Business Park — North Kingstown
Acreage:50–200+ acres available (state-managed development zone)
Zoning:Designated industrial development — state authority
Authority:Quonset Development Corporation (quasi-public state agency)
Co-location:Deepwater Port of Davisville; industrial rail; product export access
To RIRRC landfill:~25 mi (~32 min via I-95)
To Field's Point WWTF:~19 mi (~25 min via I-95)
To Woonsocket TCF:~38 mi (~50 min)
Key consideration:Transport cost premium on MSW stream; partially offset by deepwater port access for graphite/graphene export
Site coordinates: P1 Johnston/RIRRC 41.820°N 71.520°W; P2 ProvPort 41.797°N 71.389°W; P3 Quonset 41.598°N 71.423°W.
Feedstock refs: RIRRC Central Landfill (41.806°N, 71.518°W); NBC Field's Point (41.795°N, 71.389°W); NBC Bucklin Point (41.852°N, 71.370°W); Woonsocket TCF (42.002°N, 71.507°W).
Driving distances: estimated via Google Maps, March 2026. Site acreage: RIRRC operational maps; ProvPort land inventory; Quonset Development Corporation public site database.
Site Candidate Summary
| Priority | Zone | Acreage | Zoning | Land Authority | Co-location Advantage | Key Consideration |
|---|---|---|---|---|---|---|
| P1 | Johnston — RIRRC Campus | 30–45 ac | Industrial utility | RIRRC (quasi-public) | Zero MSW transport; on-campus feedstock aggregation by statute | Site agreement with RIRRC; Superfund campus |
| P2 | Port of Providence | 15–30 ac | Marine industrial | ProvPort / Providence | ~0.5 mi from NBC Field's Point (RI's largest WWTP/sludge generator) | Environmental justice sensitivity; waterfront permitting |
| P3 | Quonset Business Park | 50–200+ ac | State industrial park | Quonset Dev. Corp. | Deepwater port; rail access; product export logistics | MSW transport premium; farthest from sludge generators |
§2.5 — Phase Initial Feedstock Sufficiency
Phase Initial Is Fully Supportable Without Third-Party Negotiation
Phase Initial requires 400 TPD × 330 days = 132,000 TPY. Rhode Island's IMMEDIATE-access streams (MSW + Wastewater Sludge) total approximately 825,000 TPY — 6.3× the Phase Initial requirement. No new contract, no third-party negotiation, and no additional regulatory action is needed to supply Phase Initial. The MSW stream is legally aggregated at the RIRRC Johnston campus by statute. The sludge stream is actively seeking alternatives due to the 2027 Woonsocket deadline.
§3 — Economic Structure — TMC Fee
§3.1 — FWDC Planning Basis
| Input | Value | Source Type | Basis |
|---|---|---|---|
| MSW disposal rate (blended muni/commercial) | ~$85/ton | ESTIMATED | FY2023 municipal $54/ton; commercial $115/ton; blended 800/400 TPD municipal/commercial split |
| Sludge disposal rate (in-state/out-of-state blend) | ~$170/ton | ESTIMATED | West Warwick verified $160+/ton floor; Woonsocket processing rates ESTIMATED |
| IRA ash disposal rate | ~$100/ton | ESTIMATED | RIRRC commercial landfill rate basis |
| Coal ash disposal rate | ~$100/ton | ESTIMATED | Remediation + landfill basis |
| FWDC — blended 1,200 TPD mix | $101.67/ton | MODELED | Blended calculation; see Waste Study §3.3 for derivation |
§3.2 — TMC Fee Formula
TMC FEE FORMULA
MAX($100 [floor], MIN($150 [ceiling], FWDC − $5))
FWDC Input
$101.67/ton
MODELED — blended RI basis
FWDC − $5
$96.67/ton
Formula result — below floor
Floor Applied
$100/ton
Carbotura standard floor
TMC Fee Year 1
$100/ton LOCKED
Floor governs; FWDC − $5 = $96.67 < $100 floor
Floor ($100/ton) and Ceiling ($150/ton): Carbotura standard parameters. TMC Fee escalates 2.5%/year compounding. Year N TMC = $100 × (1.025)^(N−1).
Floor applies here because RI's blended FWDC ($101.67) minus the $5 Carbotura offset ($96.67) falls below the standard $100 floor — confirming the TMC Fee is set at the minimum permitted rate for this community.
Assumption Disclosure — FWDC Planning Basis
The FWDC of $101.67/ton is a modeled figure derived from estimated disposal rates across four streams. Individual stream rates are estimated from public documents; actual disposal contracts are not publicly disclosed. This study uses verified floor rates (West Warwick $160+/ton for sludge) and published RIRRC tipping fee schedules for MSW. Decision-makers should commission a verified FWDC analysis as part of the Community Feasibility Study before executing the COA.
§3.3 — Annual TMC Obligation by Phase
| Year | TMC/ton | Phase Initial (132K TPY) | Phase Medium (264K TPY) | Phase Expanded (396K TPY) |
|---|---|---|---|---|
| Year 1 (pre-royalty) | $100.00 | $13,200,000 | — | — |
| Year 2 | $102.50 | $13,530,000 | — | — |
| Year 5 | $110.38 | $14,570,000 | $29,140,000 | — |
| Year 10 | $128.01 | $16,897,000 | $33,795,000 | $50,692,000 |
| Year 20 | $160.49 | $21,185,000 | $42,369,000 | $63,554,000 |
| Year 30 | $203.28 | $26,833,000 | $53,666,000 | $80,499,000 |
TMC Year N = $100 × (1.025)^(N−1). Phase Medium throughput begins T0+42 months; Phase Expanded T0+60 months. Pre-royalty period (Year 1) shaded: no royalty received during this period.
§4 — Circular Royalty
§4.1 — Contractual Definition
CIRCULAR ROYALTY FORMULA
Royalty(m+13) = TMC(m) × Royalty_Rate(m)
m = month of TMC Fee payment · m+13 = month of corresponding Circular Royalty payment
Royalty_Rate(m): 120% in Year 1; escalates +1 percentage point per year thereafter
Structure: rolling lagged cash flow — monthly accrual, 13-month lag on each payment
Royalty_Rate(m): 120% in Year 1; escalates +1 percentage point per year thereafter
Structure: rolling lagged cash flow — monthly accrual, 13-month lag on each payment
§4.2 — Parameter Table
| Parameter | Value | Status |
|---|---|---|
| Royalty base rate (Year 1) | 120% of Year 1 TMC | LOCKED |
| TMC Fee escalator | 2.5%/year compounding | LOCKED |
| Royalty rate escalator | +1 percentage point per year | LOCKED |
| Payment lag | 13 months after corresponding TMC payment | LOCKED |
| Calculation basis | Rolling monthly | LOCKED |
| Agreement term | 30 years | LOCKED |
§4.3 — Fiscal Period Distinction
| Period | Timing | TMC Position | Royalty Position | Net Fiscal Position |
|---|---|---|---|---|
| Pre-royalty | Months 1–12 (Year 1) | $100/ton paid | $0 received | −$100/ton |
| Royalty ramp | Month 13 – ~Month 24 | $102.50/ton paid | $120/ton received (rolling) | +$17.50/ton (Year 2) |
| Steady state | Year 2 onward — growing | Escalating at 2.5%/yr | Escalating at 2.5%/yr + 1pp/yr | Growing positive |
Contractual Royalty Language — Three Required Statements
1. Gross cost displacement is quantified separately from Circular Royalty cash flow. Full net fiscal position reflects both.
2. At steady state, the Circular Royalty is designed to exceed the TMC Fee on a per-ton basis.
3. Circular Royalty payments begin 13 months after corresponding TMC Fee payments and ramp to full run-rate on a rolling basis.
§4.4 — Year-by-Year Cash Flow
| Year | TMC/ton | Royalty Rate | Royalty/ton | Net/ton | Phase Initial Annual Net | Phase Expanded Annual Net |
|---|---|---|---|---|---|---|
| Year 1 | $100.00 | — | $0 | −$100.00 | −$13,200,000 | — |
| Year 2 ← First royalty | $102.50 | 120% | $120.00 | +$17.50 | +$2,310,000 | — |
| Year 5 | $110.38 | 123% | $132.46 | +$22.08 | +$2,915,000 | — |
| Year 10 | $128.01 | 128% | $155.96 | +$27.95 | +$3,689,000 | +$11,068,000 |
| Year 20 | $160.49 | 138% | $215.24 | +$54.75 | +$7,227,000 | +$21,681,000 |
| Year 30 | $203.28 | 148% | $294.49 | +$91.21 | +$12,040,000 | +$36,119,000 |
Royalty/ton in Year N = (119% + N%) × TMC of Year N−1. TMC Year N = $100 × (1.025)^(N−1). Phase Expanded Annual Net shown from Year 10 (approximate full expansion online T0+60 months). All figures ESTIMATED. ESTIMATED
§4.5 — Royalty vs. TMC Crossover Visualization
Circular Royalty vs. TMC Fee — Per-Ton Position · Years 1–30
The crossover occurs at Month 13. From Year 2 onward, Royalty consistently exceeds TMC. The gap widens each year as the +1pp royalty escalator compounds above the 2.5% TMC escalator.
TMC Fee ($/ton)
Circular Royalty ($/ton)
Pre-royalty gap
Net positive
Basis: TMC Year N = $100 × (1.025)^(N−1). Royalty Year N = (119%+N%) × TMC(N−1). All figures ESTIMATED. Visualization reflects per-ton economics at Phase Initial (400 TPD). Shading: mustard = pre-royalty period; emerald = net positive zone.
−$100
Year 1 Net (per ton)
Pre-royalty · TMC only
+$17.50
Year 2 Net (per ton)
Royalty exceeds TMC
+$91
Year 30 Net (per ton)
Growing positive
~$153M
30-Year Cumulative Net
Phase Initial · ESTIMATED
~$460M
30-Year Cumulative Net
Phase Expanded · ESTIMATED
§5 — Risk Register
| Risk | Key Driver | Who Bears It | Mitigation | Residual Exposure |
|---|---|---|---|---|
| FWDC verification | Modeled FWDC may differ from contracted rates | State (TMC Floor protects Carbotura) | Community Feasibility Study produces verified FWDC before COA execution | Low — $100 floor ensures minimum value regardless of FWDC outcome |
| Technology performance | ACM conversion efficiency and output quality | Carbotura — BOO structure | Performance warranties; liquidated damages in COA; Carbotura owns all capital | Low for State — no capital at risk; feedstock redirected to RIRRC if ACM offline |
| Timeline slippage | Permitting delays extend beyond 2027 Woonsocket deadline | Shared — State (sludge displacement costs); Carbotura (revenue delay) | Authorize Feasibility Study Q2 2026; P1 site co-location minimizes permitting complexity | Med — every month of delay risks sludge municipalities to $160+/ton out-of-state routes |
| Third-party sludge contracts | NBC or municipalities sign long-term alternative sludge contracts before COA | State — reduces sludge stream volume | MSW stream (750K TPY) is legally mandated regardless; Phase Initial supportable on MSW alone | Low — sludge stream is supplemental to MSW sufficiency |
| Competitive procurement | Alternative waste management technology deployment in RI | State — market risk | WTE combustion prohibition eliminates any conventional incineration competitor; ACM's manufacturing classification is unaffected by the prohibition; rail haul ($89–100/ton) remains more expensive than TMC Fee | Low — statutory WTE prohibition and RIRRC mandatory delivery create structural barriers to competition |
| Residual stream management | Non-convertible fraction of feedstock requires disposal | Carbotura — contractual obligation | COA requires Carbotura to manage all residuals; State has no liability | Low for State |
| PFAS regulatory evolution | Federal/state PFAS limits may restrict biosolids reuse and co-processing | Shared — affects sludge access classification | ACM MCR process is designed to destroy PFAS within the closed-loop anoxic environment at 1,200°C+ localized hot spots; no PFAS-containing emissions released; product characterization under Carbotura technical program | Med — evolving federal standards; mitigated by ACM's PFAS destruction capability |
§6 — Deployment Timeline
| Milestone | Target | Offset | Notes |
|---|---|---|---|
| ⚑ Synagro Contract Expiry — HARD DEADLINE | 2027 | Fixed | City of Woonsocket exits sludge incineration; 30+ municipalities displaced. Action window: under 24 months. |
| Authorize Community Feasibility Study | Q2 2026 (T0) | T0 | Decision required no later than Q2 2026 to hit Phase Initial COD by Q2 2028 |
| Feasibility Study completion | Q3 2026 | T0 + 3 months | Verified FWDC; confirmed site; refined TPD allocation |
| Site designation + permitting initiation | Q4 2026 | T0 + 6 months | P1 Johnston/RIRRC provisional; RIDEM/EPA coordination |
| COA execution + Phase Initial construction start | Q4 2026 | T0 + 6 months | Full BOO financing closed; construction commences |
| Phase Initial COD | Q2 2028 | T0 + 24 months | 400 TPD operational; 132,000 TPY throughput. First TMC Fee obligations begin. |
| First Circular Royalty payment | Q3 2029 | T0 + 37 months | 13 months after Phase Initial COD; rolling royalty commences |
| Phase Medium full operations | Q4 2029 | T0 + 42 months | 800 TPD; 264,000 TPY |
| Phase Expanded full operations | Q4 2031 | T0 + 60 months | 1,200 TPD; 396,000 TPY; full system economics |
Carbotura standard deployment schedule. T0 assumed January 2026 for planning purposes; subject to feasibility study and authorization timing. All dates ESTIMATED.
§7 — Community Value Stack
§7.1 — Direct Fiscal Effects (State Treasury / RIRRC)
| Fiscal Effect | Phase Initial | Phase Expanded | Mechanism | Status |
|---|---|---|---|---|
| Year 1 net cost vs. current system | −$0.53/ton ($100 TMC vs $101.67 FWDC) |
— | TMC Fee replaces blended FWDC — essentially cost-neutral in Year 1 | MODELED |
| Year 2 net positive Circular Royalty return | +$2.3M/yr | — | $120/ton royalty − $102.50/ton TMC × 132,000 TPY | ESTIMATED |
| 30-year cumulative Circular Royalty net | ~$153M | ~$460M | Compounding royalty escalation minus TMC escalation | ESTIMATED |
| Sludge displacement cost avoidance (post-2027) | ~$5.2–7.5M/yr | ~$12M+/yr | Versus out-of-state rail/truck at $89–160/ton for displaced volumes | ESTIMATED |
| Landfill life extension (diversion credit) | +5–8 years | +15+ years | 132K–396K TPY diverted from Central Landfill reduces capacity depletion rate | ESTIMATED |
§7.2 — Regional Economic Effects
| Economic Effect | Phase Initial | Phase Expanded | Status |
|---|---|---|---|
| Direct employment — facility operations | 120 FTE | 360 FTE | ESTIMATED |
| Indirect employment — regional supply chain | 360 jobs | 1,080 jobs | ESTIMATED |
| Annual regional economic impact | ~$28M | ~$84M | ESTIMATED |
| Carbon displacement | ~160,000 tCO₂e/yr | ~480,000 tCO₂e/yr | ESTIMATED |
| RI Act on Climate alignment | ACM material outputs displace carbon-intensive industrial production; consistent with RI 45% GHG reduction target by 2030 | VERIFIED | |
Regional economic effects are separate from and in addition to direct fiscal effects. Combining them would misrepresent the community's fiscal position. Employment and economic figures: Carbotura standard parameters scaled to 120 direct FTE per 400 TPD module. ESTIMATED
§8 — Why This Works in Rhode Island
- Volume alignment. Rhode Island generates approximately 895,000 TPY of identifiable manufacturing feedstock across four confirmed streams. Phase Expanded at 1,200 TPD requires 396,000 TPY — 44% of identified feedstock. Phase Initial at 400 TPD requires 132,000 TPY — 14.8% of identified feedstock. Volume sufficiency is not a constraint at any phase.
- Infrastructure alignment. The Priority 1 site — the RIRRC Johnston campus — has the feedstock aggregation mechanism built in by statute. R.I. Gen. Laws § 23-19 requires all 39 municipalities to deliver residential waste to Johnston. An ACM facility on or adjacent to the RIRRC campus receives its primary feedstock stream at zero transport cost. No other state in the programme offers this degree of feedstock co-location certainty.
- Contract timing alignment. The 2027 Synagro contract expiry at Woonsocket is a hard, publicly documented deadline. A Feasibility Study authorized in Q2 2026 produces a Phase Initial COD of Q2 2028 under the Carbotura standard schedule — before full sludge system collapse. The deployment window is not a projection; it is a demonstrated timeline against a fixed external event.
- Policy alignment. Rhode Island's combustion-based WTE prohibition has created a structural disposal gap for four decades. This prohibition targets NAICS 562213 (Solid Waste Combustion & Incineration) — it does not apply to ACM. ACM's Microwave Catalytic Reforming (MCR) process operates in a closed, oxygen-free (anoxic), sub-atmospheric environment: combustion is mechanistically excluded by design. ACM is classified NAICS 335991 (Carbon & Graphite Product Manufacturing), 325120 (Industrial Gas Manufacturing), and 331410 (Nonferrous Metal Smelting & Refining). Rhode Island's RIDEM reviews ACM under manufacturing facility permitting — not solid waste facility regulations. An EPA RCRA Solid Waste Exclusion Petition filed February 20, 2026 documents the federal manufacturing classification basis, eliminating the "discarded material" predicate at title transfer under the Circular Offtake Agreement. ACM's hydrogen production qualifies for IRA § 45V Clean Hydrogen Production Credits (up to $3.00/kg); Ash Carbonation (CaO + CO₂ → CaCO₃) qualifies for § 45Q Carbon Capture Credits; domestic battery-grade synthetic graphite and critical minerals production qualifies for § 45X Advanced Manufacturing Production Credits — all requiring manufacturing NAICS classification. RI's Act on Climate (45% GHG reduction by 2030) and the 100% renewable energy standard by 2033 further align with ACM's hydrogen and carbon output profile.
- Organic mandate and regulatory driver. The Synagro 2027 deadline is the defining regulatory driver for this proposal. RIDEM's own administrator has confirmed that the entire state relies on the Woonsocket incinerator as a sludge disposal option. Rhode Island's food waste ban (2016) and mandatory recycling targets further compress acceptable disposal options. ACM absorbs contaminated and mixed streams that recycling facilities reject.
- Economics specificity. The TMC Fee of $100/ton is set at the Carbotura standard floor — applied here because Rhode Island's blended FWDC of $101.67/ton produces a formula result ($96.67) below the $100 floor. This is the minimum possible TMC Fee under the standard framework, and it is below the verified out-of-state sludge disposal rate of $160+/ton already being paid by West Warwick today. The economic case does not depend on projection — it is verifiable against existing procurement costs paid in the current fiscal year.
EIR Input Block — All State B Values Locked · For EIR Use Only
All values below represent the State B ("With Carbotura") inputs for the Environmental and Investment Review. These values must match exactly what appears in the Proposal body. All source types propagated.
| Field | Value | Source Type |
|---|---|---|
| ACM Facility Capacity — Phase Initial | 400 TPD / 132,000 TPY | LOCKED |
| ACM Facility Capacity — Phase Medium | 800 TPD / 264,000 TPY | LOCKED |
| ACM Facility Capacity — Phase Expanded | 1,200 TPD / 396,000 TPY | LOCKED |
| TMC Fee — Year 1 | $100.00/ton | LOCKED |
| TMC Fee — Escalator | 2.5%/year | LOCKED |
| Circular Royalty — Base Rate | 120% of Year 1 TMC | LOCKED |
| Circular Royalty — Escalator | +1pp/year | LOCKED |
| Circular Royalty — Payment Lag | 13 months | LOCKED |
| Phase Initial COD | T0 + 24 months (~Q2 2028) | ESTIMATED |
| Phase Medium Full Ops | T0 + 42 months (~Q4 2029) | ESTIMATED |
| Phase Expanded Full Ops | T0 + 60 months (~Q4 2031) | ESTIMATED |
| Priority 1 Site | Johnston — RIRRC Campus Zone (P1) | ESTIMATED |
| Site coordinates (P1 centroid) | 41.820°N, −71.520°W | ESTIMATED |
| FWDC (State A planning basis) | $101.67/ton | MODELED |
| Year 2 net per ton | +$17.50/ton | ESTIMATED |
| 30-year cumulative net — Phase Initial | ~$153M | ESTIMATED |
| 30-year cumulative net — Phase Expanded | ~$460M | ESTIMATED |
| Direct employment — Phase Expanded | 360 FTE | ESTIMATED |
| Carbon displacement — Phase Expanded | ~480,000 tCO₂e/yr | ESTIMATED |
| CapEx — Phase Initial | $247.5M | LOCKED |
| CapEx — Phase Expanded (cumulative) | $707.5M | LOCKED |
Appendix A — Data Basis
- TMC Fee ($100/ton): User-specified; confirmed against FWDC formula result. Source: Carbotura registry lock.
- FWDC ($101.67/ton MODELED): Derived from RIRRC tipping fee schedule (FY2023 $54/ton municipal, extrapolated); West Warwick sludge disposal cost (RI Current, February 2026, $160+/ton verified); RIRRC commercial rate (~$115–130/ton estimated). Full derivation: Waste Study §3.3.
- Circular Royalty parameters: Carbotura standard defaults — locked per MI v3.0. No external source required.
- CapEx formula: Carbotura standard — $75M first 100 TPD + $57.5M per additional 100 TPD. Locked per MI v3.0.
- Site candidates: P1 — RIRRC (rirrc.org); P2 — ProvPort (provport.com); P3 — Quonset Development Corporation (quonset.com). Driving distances: Google Maps estimates, March 2026.
- 2027 Synagro deadline: Valley Breeze (March 2026); Rhode Island Current (September 2025). Contractual expiry confirmed via public reporting.
- WTE prohibition: ecoRI.org (April 2025). Statutory reference: Rhode Island General Assembly.
- Employment / economic impact: Carbotura standard parameters scaled at 120 direct FTE per 400 TPD module. ESTIMATED.
- Carbon displacement: Carbotura standard parameters. ESTIMATED.
Appendix B — Selective Glossary
- BOO — Build-Own-Operate
- A project delivery structure in which Carbotura designs, finances, constructs, owns, and operates the ACM facility at no capital cost to the State. Rhode Island's sole financial obligation is the per-ton TMC Fee.
- Circular Royalty
- A structured per-ton cash payment from Carbotura to the State, calculated as Royalty(m+13) = TMC(m) × Royalty_Rate(m). Base rate: 120% of Year 1 TMC. Escalates +1pp/year. Payment lag: 13 months. At steady state, designed to exceed the TMC Fee on a per-ton basis.
- COA — Circular Operating Agreement
- The 30-year commercial contract governing feedstock delivery, TMC Fee, Circular Royalty payments, and operational parameters between Carbotura and the State.
- FWDC — Fully Weighted Disposal Cost
- The blended per-ton cost of disposing of all feedstock streams under current system economics. For Rhode Island, FWDC = $101.67/ton (MODELED). Used as the reference for TMC Fee formula. Derivation disclosed in Waste Study §3.3.
- Gross Cost Displacement
- The annual reduction in disposal cost resulting from substituting the TMC Fee for the FWDC. In Year 1, Rhode Island's gross cost displacement is approximately +$0.53/ton (FWDC $101.67 minus TMC $100.00 = $1.67/ton, plus transport savings where applicable). Quantified separately from Circular Royalty cash flow.
- Net County Fiscal Position
- The sum of gross cost displacement plus Circular Royalty payments minus TMC Fee obligations, expressed per ton and in total annual dollars. Year 1: −$100/ton (pre-royalty). Year 2+: growing net positive.
- Pre-Royalty Period
- Months 1–12 following first feedstock delivery. During this period, the State pays the TMC Fee and receives zero Circular Royalty. The first Circular Royalty payment arrives in Month 13, covering the first month's TMC payment at 120% of that amount.
- TMC Fee — Total Materials Conversion Fee
- The per-ton fee paid by the State to Carbotura for converting feedstock into industrial products. Formula: MAX($100, MIN($150, FWDC − $5)). For Rhode Island: $100/ton (floor applies; FWDC − $5 = $96.67 < $100 floor). Escalates 2.5%/year.