12 landfills closing 2025–2028 — territorial capacity exhaustion projected ~2030 12 vertederos cerrando 2025–2028 — agotamiento de capacidad territorial proyectado ~2030
Puerto Rico operates 29 municipal landfills, only 11 federally compliant. Twelve operate under EPA Consent Orders requiring closure, with the clustered closure window running 2025–2028. A FEMA/EPA assessment projects territorial landfill capacity exhaustion between 2028 and 2030. No contracted engineered alternative currently exists. DRNA's February 2026 public reconsideration of waste-to-energy incineration confirms the Commonwealth is actively searching without a solution in place. The window to authorize a 30-year contracted manufacturing pathway closes in Q3 2026 for Phase Initial COD Q1 2029 — just ahead of the capacity wall. Puerto Rico opera 29 vertederos municipales, solo 11 cumplen con normativas federales. Doce operan bajo Órdenes de Consentimiento EPA que requieren cierre, con una ventana de cierre en 2025–2028. Una evaluación FEMA/EPA proyecta el agotamiento de capacidad entre 2028 y 2030. No existe actualmente ninguna alternativa contratada.
Puerto Rico generates approximately 10,000 TPD of manufacturing feedstock against an annual system cost approaching $530 million — rising. The current system routes waste to a shrinking pool of compliant landfills with no contracted replacement. Carbotura's ACM process converts residual MSW into synthetic graphite, graphene compounds, and recovered minerals — anoxic, oxygen-free, no combustion, classified under manufacturing NAICS (not solid waste). Puerto Rico genera aproximadamente 10,000 TPD de materia prima manufacturera con un costo anual del sistema cercano a $530 millones — en aumento. El proceso MCR de Carbotura convierte el MSW residual en grafito sintético, compuestos de grafeno y minerales recuperados.
Manufacturing NAICS classification — the same classification that qualifies for Act 60 Chapter 6 Manufacturing Decree. This unlocks a 4% CIT, 75% property tax exemption, and 50% municipal license exemption — structural fiscal incentives that compound over the 30-year CSA term and are only available under manufacturing classification, not solid waste. La clasificación manufacturera NAICS — la misma clasificación que califica para el Decreto Manufacturero Capítulo 6 Ley 60. Esto desbloquea un 4% CIT, 75% de exención de impuesto a la propiedad y 50% de exención de licencia municipal.
Phase Initial at 400 TPD achieves COD Q1 2029 — just ahead of the projected capacity wall. Zero territorial capex. The Beneficiation Fee of $120/ton replaces previously committed disposal spending. From Month 13, the Circular Royalty™ at $144/ton returns 120% of the current-year Beneficiation Fee. La Fase Inicial de 400 TPD logra COD en Q1 2029, justo antes del muro de capacidad proyectado. Cero capex territorial.
Five structural facts for Puerto RicoCinco hechos estructurales para Puerto Rico
Puerto Rico's landfill system cost approaches $530M annually — incorporating EPA-mandated closure provisioning, 30-year post-closure care, and the capacity-crisis forward curve premium. Against 10,000 TPD territorial generation, this cost rises each year. The Beneficiation Fee at $120/ton replaces this spend; the Circular Royalty™ from Year 2 returns more than was paid.El costo del sistema de vertederos de Puerto Rico se acerca a $530M anuales. El Beneficiation Fee de $120/ton reemplaza este gasto; el Circular Royalty™ desde el Año 2 devuelve más de lo pagado.
Each of the 12 Consent Order landfills closing in the 2025–2028 window increases pressure on the remaining compliant facilities. FEMA/EPA projects territorial capacity exhaustion 2028–2030. DRNA's February 2026 public reconsideration of incineration confirms there is no contracted alternative. Phase Initial COD Q1 2029 positions Puerto Rico ahead of this wall — but only if the procurement decision is made by Q3 2026.Cada uno de los 12 vertederos que cierran aumenta la presión sobre las instalaciones conformes restantes. La proyección FEMA/EPA es el agotamiento de capacidad 2028–2030.
ACM's NAICS classification under Sector 31–33 (manufacturing) directly qualifies for Act 60 Chapter 6 Manufacturing Decree: 4% corporate income tax, 75% property tax exemption, 50% municipal license exemption. A solid waste classification (NAICS 562xxx) is a Regulatory Predicate Transition (RPT) failure — Carbotura will not execute the CSA if the facility is classified as solid waste disposal. The Act 60 incentives are a compounding value layer that only exists under the manufacturing pathway.La clasificación NAICS del ACM bajo el Sector 31–33 califica directamente para el Decreto Manufacturero Capítulo 6 Ley 60: 4% CIT, 75% exención de impuesto a la propiedad, 50% exención de licencia municipal.
Year 1 Beneficiation Fee at Phase Initial (400 TPD): $17.52M. Year 2 Circular Royalty™: $21.02M. Zero territorial capital expenditure throughout. Gross cost displacement quantified separately from the Circular Royalty™ per the Separate Transaction Principle.Año 1 Beneficiation Fee Fase Inicial: $17.52M. Año 2 Circular Royalty™: $21.02M. Excedente neto Año 2: ~+$3.07M. Cero gasto de capital territorial.
Working backward from Q1 2029 COD: construction must begin Q1 2027, CSA must execute by Q2 2026, LOI/MOU execution must come by Q3 2026. Each step in the chain is dependent on the previous. The window is open now. Waiting for the capacity crisis to become acute forecloses the pre-crisis commissioning window permanently.Trabajando hacia atrás desde el COD Q1 2029: la construcción debe comenzar Q1 2027, el CSA debe ejecutarse en Q2 2026, la autorización del Estudio de Factibilidad debe llegar en Q3 2026.
Two paths for Puerto RicoDos caminos para Puerto Rico
Circular Royalty™Elección Estándar
Circular Royalty™
- Beneficiation Fee: $120/ton, 2.5%/yr escalatorBeneficiation Fee: $120/ton, escalador 2.5%/año
- Circular Royalty™: 120% of the current-year Beneficiation Fee (Year 1 base $144/ton), +1pp/yrCircular Royalty™: 120% de la base del Año 1 ($144/ton), +1pp/año
- Royalty commencement: Month 13 after corresponding Beneficiation Fee payment (rolling monthly)Inicio de Royalty: Mes 13 tras el Beneficiation Fee correspondiente (mensual rotativo)
- 30-year CSA term · perpetual continuation languageTérmino CSA 30 años · lenguaje de continuación perpetua
- Parent Performance Guarantee · Zero territorial capexGarantía de Desempeño Matriz · Cero capex territorial
- Regulatory Predicate Transition (RPT) — NAICS Sector 31–33 requiredRPT — NAICS Sector 31–33 requerido
- Act 60 Chapter 6 Manufacturing Decree eligibility (4% CIT, 75% property tax, 50% municipal)Elegibilidad Decreto Manufacturero Ley 60 Cap. 6 (4% CIT, 75% impuesto propiedad, 50% municipal)
- US GAAP / GASB accounting treatment
Puerto Rico's legacy and closing landfill sites — accumulated under the EPA Consent Order closure programme — are qualifying candidates for the Exogenesis™ Royalty. Converting accumulated legacy material into a structured dual-stream payment converts a post-closure liability into a royalty income stream without altering primary CSA terms. Available under the CSA. Subject to Waste Characterization Study confirmation.Los vertederos heredados y en proceso de cierre de Puerto Rico son candidatos elegibles para el Exogenesis™ Royalty. Convierte el material heredado acumulado en un pago de doble flujo estructurado. Disponible como complemento de la CSA.
Subject to Waste Characterization Study confirmationSujeto a confirmación del Estudio de Caracterización de ResiduosKey figures at a glanceCifras clave de un vistazo
Year 1 base · Phase Initialpor tonelada · 2.5%/año
base Año 1 · Fase Inicial
+$3.07M excedente vs. tarifa
no contracted alternativeAnual territorial · en aumento
sin alternativa contratada
75% property · 50% municipalCIT bajo Decreto Manufacturero
75% propiedad · 50% municipal
Circular Royalty™ projections — 400 to 2,000 TPDProyecciones de Circular Royalty™ — 400 a 2,000 TPD
Beneficiation Fee and Circular Royalty™ shown independently per the Separate Transaction Principle.Beneficiation Fee y Circular Royalty™ mostrados de forma independiente según el Separate Transaction Principle.
| Capacity | Annual TPY | Fee · Year 1 | Royalty™ · Year 2 | 30-Yr Gross Royalty | FTE |
|---|---|---|---|---|---|
| 400 TPD ← Phase Initial | 146,000 | $17.52M | $21.02M | ~$1,049M EST | ~100 |
| 1,000 TPD · Phase Medium | 365,000 | $43.80M | $52.56M | ~$2.62B EST | ~250 |
| 2,000 TPD · Phase Expanded | 730,000 | $87.60M | $105.12M | ~$5.24B EST | ~500 |
All figures USD. Royalty (Year n) = (120% + (n−1)pp) × that year’s Beneficiation Fee ($144/ton). 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. 30-year gross royalty ESTIMATED.Todas las cifras en USD. Royalty Año 2 = 120% × base Año 1 ($144/ton). El Circular Royalty™ está diseñado para exceder el Beneficiation Fee por tonelada en estado estable.