San Diego County · Advanced Circular Manufacturing

Your community earns
a royalty on its own materials.

What leaves San Diego County as a disposal problem comes back as a monthly royalty payment — growing for 30 years, with no public money spent to make it happen.

See what this means for San Diego ↓
Community Benefits · Plain language · DOC 06 OF 06

What this page is

A plain-language overview of what the Carbotura partnership means for San Diego County residents. No technical jargon, no formulas. If you want the full detail, the other documents in this package have everything — but this page tells you what matters to your community.

Three things to know
  1. San Diego County’s only public landfill closes around 2031. Carbotura builds and runs local factories that turn the county’s materials into manufactured goods — so the county no longer depends on landfills.
  2. Every month, Carbotura pays the county a growing share of what the factories earn — starting about 13 months after the first factory opens, and continuing for at least 30 years. No landfill ever paid that.
  3. The county doesn’t spend any public money on construction, staffing, or operations. Carbotura funds, builds, and runs everything under a long-term agreement.
~500
Local manufacturing
jobs created
~$1.09B
Paid back to the county
over 30 years
1.14M
Tonnes of carbon
avoided per year
$0
Public money needed
to build the factories
30+
Years of royalty
payments to the county
What the community gains
Ten direct benefits of bringing Advanced Circular Manufacturing to San Diego County.
💰
Monthly royalty income
Starting about 13 months after the factory opens, Carbotura pays San Diego County a share of what it earns from the materials. That royalty grows every year.
💼
~500 local manufacturing jobs
The full four-factory network employs approximately 500 people directly in manufacturing — good-paying, permanent local jobs, not construction contracts.
💵
Stable costs — no surprise hikes
The processing fee the county pays is locked in the agreement and grows at a set rate. When the last public landfill closes, there’s no private monopoly on pricing.
🌿
Over a million tonnes of carbon avoided
Converting materials instead of landfilling them avoids the methane that buried waste generates — about 1.14 million tonnes of CO₂ equivalent every year.
🔩
No public capital investment
Carbotura finances, designs, builds, and operates all factories under a long-term agreement. The county’s role is to send materials and collect its royalty.
🚌
Fewer long-haul truck routes
Four local factories spread across the county mean materials travel shorter distances. Less diesel, less congestion, fewer heavy vehicles on county roads.
🌏
Materials get a second life
Everything that goes into a Carbotura factory comes out as manufactured products — nothing is burned, nothing is buried. A true circular loop for the county’s materials.
💧
Water recovered in the process
The conversion process recovers approximately 220,000 gallons of water per day across the full four-factory network — a meaningful contribution in a water-stressed region.
Near-zero external energy needed
The factories are largely self-powered — the conversion process generates the energy the facility needs to run. No significant draw on the regional power grid.
🕒
30 years of guaranteed partnership
The agreement runs for at least 30 years. The county can serve a notice to exit after Year 28, but if nothing changes, the partnership — and the royalty — continues indefinitely.
Before and after
What San Diego County’s materials situation looks like today vs. with Carbotura operating.
▲ Without Carbotura — State Today
Materials sent to Miramar Landfill — which closes around 2031
No royalty income — disposal is a pure cost, every year
Gate fees rise annually with inflation — no price cap
After 2031, one company controls all county landfills
Long-haul trucks carry materials to distant landfill sites
Buried waste generates methane for decades after disposal
Few permanent local jobs from the disposal industry
No processing pathway for organics under California’s new recycling law
Gregory Canyon Landfill — the only planned new site — permanently canceled
▼ With Carbotura — State B
Materials go to local Carbotura factories — Miramar closure becomes irrelevant
County earns a growing monthly royalty — materials become income
Processing fee locked by agreement at a set growth rate
Carbotura operates the factories — no single landfill monopoly on costs
Local facilities across four county zones — shorter trips, less diesel
Near-zero emissions from the conversion process
~500 permanent local manufacturing jobs
Organics stream has a processing pathway — California compliance supported
No public capital required to build or run the factories
How it works for the county financially
Two sides of the same partnership — what the county pays, and what it gets back.
What the county pays
$100 per tonne
The processing fee is set in the agreement at $100 per tonne in Year 1 and grows at a fixed, agreed rate each year — the same rate regardless of what happens to landfill prices. Currently Miramar charges $102–108 per tonne. This fee is a gross cost that appears separately from the royalty.
What the county receives back
A growing monthly royalty
About 13 months after the factory first opens, Carbotura begins paying the county a share of the manufacturing value — starting above $87 million per year for the full four-factory network, rising each year, and continuing for at least 30 years. From Year 2, the royalty exceeds the processing fee per tonne processed.
Environmental impact
Numbers for the full four-factory county network (estimated)
~1,140,000
Tonnes of CO₂ equivalent avoided per year — about the same as taking 247,000 cars off the road
~220,000
Gallons of water recovered by the conversion process every day
Near‑zero
External energy draw — the factories run largely on the energy the process itself generates
How the royalty works — in plain English
You don’t need to understand the formula to understand what this means. Here’s how the money flows.
Step 1
🚚
Materials arrive
San Diego County sends its materials to the local Carbotura factory, same as haulers currently go to the landfill.
Step 2
💳
County pays a processing fee
The county pays Carbotura a per-tonne Beneficiation Fee (TMC Fee) under the manufacturing arrangement — the agreed rate, locked in the CSA. Similar in role to today’s disposal tipping fee, except the material becomes a product instead of buried waste.
Step 3
🏭
Factory converts materials
Everything delivered is converted into manufactured products. Nothing is burned or buried.
Step 4
13 months later..
Carbotura pays the county an additional share of the value it earned from the materials — the royalty. It starts around 13 months after the first delivery.
Step 5
📈
Royalty grows every year
The royalty increases automatically each year. It keeps growing for at least 30 years — and beyond, if the county doesn’t give notice to wind down.

The key point: a traditional landfill takes your materials and charges you a fee. Carbotura takes your materials, charges a smaller fee, and then pays you back a growing share of what it earns — every month, for decades. From Year 2 onwards, what Carbotura pays back exceeds what the county pays in, per tonne.

A second royalty stream — when a landfill is cleaned up
The Circular Royalty™ is paid on new materials as they arrive. The Exogenesis™ Royalty is a separate, additional payment for material extracted from a legacy landfill during remediation.
Exogenesis™ Royalty — the legacy landfill payment
A separate, structured royalty stream for material recovered during landfill remediation. Paid at $50 per ton extracted, escalating +1% per year. Direct payment to San Diego County. Stacks on top of the Circular Royalty™ under the CSA.

Where a qualifying legacy landfill has been identified, the CSA can include the Exogenesis™ Royalty as an additional agreement appended to the primary contract. It doesn't change any of the primary CSA terms — it is a bonus stream for a specific separate activity: mining and processing buried material rather than accepting fresh feedstock.

Candidate sites for San Diego County. West Miramar Sanitary Landfill is approaching an estimated closure around 2031 and is on a post-closure trajectory. Republic Services facilities — Sycamore, Otay, and Borrego — carry legacy inventory that may qualify. Site-specific eligibility is confirmed through a Waste Characterization Study before any Exogenesis™ commitment is included in the CSA.

In plain terms: as Miramar closes and the county faces the post-closure care obligation, Exogenesis™ converts the buried material into a manufactured product and returns a second royalty stream to the county for that work. The landfill becomes restorable land; the buried material becomes industrial product; the county is paid for both while the process runs.

Where everything happens
Four factory locations across the county — close to where materials are generated, not far away in the desert.

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What’s where
Where the factory would go — South County
The first factory location — near the Otay Mesa industrial zone in Chula Vista. About 20 miles south of downtown San Diego.
Where the factory would go — East County
A second factory near Santee, serving the East County communities where a lot of the county’s materials are generated.
The landfill being replaced — Miramar
West Miramar Sanitary Landfill, operated by the City of San Diego. The county’s only public landfill — and it closes around 2031. The P4 factory would be built nearby.
Where the factory would go — North County
A third factory location near Vista or Oceanside, serving the fast-growing North County communities where hauler routes are longest today.

Factory locations are proposed — exact sites confirmed during the planning process after the partnership agreement is signed.

Questions people ask
Plain answers to common questions about the Carbotura partnership.
What actually happens inside the factory?

Carbotura’s factories receive the same everyday materials that currently go to the landfill — household rubbish, commercial waste, packaging — and convert them into manufactured materials that industry can use. Think of it as a sophisticated recycling and conversion plant, but one that can handle materials that ordinary recycling can’t.

The conversion process is largely self-powered — the factory generates most of the energy it needs from the materials themselves, so it doesn’t put significant demand on the county’s power grid. Nothing is burned in the traditional sense, and nothing ends up in landfill. The factories are designed to look and operate like industrial manufacturing facilities, not like waste sites.

Does the county have to pay anything?

Yes — the county pays a processing fee per tonne of materials it sends to the factory. This fee is set in the agreement at $100 per tonne in Year 1, and grows at a fixed agreed rate each year. Think of it like paying the landfill a gate fee, except the rate is agreed in advance and locked in, so there are no surprises when private landfill operators adjust their pricing.

Here’s the critical difference from a landfill: Carbotura takes that same fee and pays a growing share of it back to the county as a royalty — starting about 13 months after operations begin. From Year 2 onwards, what comes back in royalty payments exceeds what goes out in processing fees per tonne. The county ends up in a better financial position than under the current landfill arrangement.

The county does not need to fund construction, staffing, operations, or maintenance. Carbotura covers all of that.

When does the county start receiving royalty payments?

About 13 months after the factory first receives materials — this is how the agreement is structured, and it’s a deliberate feature, not a delay. The royalty is calculated on each month’s materials, then paid out 13 months later, on a rolling basis. So once the first payment arrives in Month 14, payments continue every month thereafter.

In practical terms: if the first factory opens in late 2028, the county starts receiving royalty payments in late 2029. Those payments then grow every year for the entire duration of the partnership — a minimum of 30 years, and potentially much longer.

The estimated total royalty paid back to the county over the 30-year minimum for the full four-factory network is around $1.09 billion. This is an estimate based on current projections and is not a guarantee, but it gives a sense of the scale of the long-term financial benefit.

Who builds and pays for the factories?

Carbotura does — entirely. The company funds, designs, builds, and operates all facilities under what’s called a Build-Own-Operate model. Carbotura holds full ownership of the factories throughout the 30-year partnership.

San Diego County doesn’t need to issue bonds, take on debt, hire contractors, or manage construction. The county’s role is straightforward: send the materials and collect the royalty. Everything else is Carbotura’s responsibility.

If anything goes wrong with the factory — performance issues, technical problems, operational disruptions — that’s Carbotura’s problem to fix, not the county’s. The agreement is designed to protect the county from operational risk.

What happens after 30 years? Can the county exit early?

The partnership agreement runs for a minimum of 30 years from when the first factory opens. After Year 28, either party can give formal notice that they want to wind down the arrangement. If notice is given in Year 28, the partnership ends at Year 30. If no notice is given, the partnership — and the royalty payments — simply continue.

Early exit before Year 28 is not available under the standard agreement terms. This is intentional: the 30-year commitment is what allows Carbotura to secure the financing to build the factories in the first place. The stability of the agreement is what makes the economics work for both sides.

The county’s commitment is also limited: send an agreed volume of materials each year, pay the processing fee per tonne, and cooperate with the planning process to get the factories built. Beyond that, the county’s obligations are minimal.

Where these numbers come from

The numbers on this page come from the San Diego County Assumption Registry (locked July 2026) and the three preceding package documents. A quick guide to confidence levels:

LOCKED — contractually fixed: processing fee $100/tonne Year 1; royalty formula; 30-year minimum; locked growth rates.

VERIFIED — confirmed from public sources: Miramar gate rate $102–108/tonne (City of SD FY2026 fee schedule); Miramar closure ~2031 (CalRecycle permit); operator names.

ESTIMATED — modelled from confirmed data: county-wide materials volume (~8,767 TPD from CalRecycle 2022); $125/tonne all-in disposal cost; carbon avoidance; water recovery; employment.

Royalty totals (~$1.09B) are illustrative projections under the current formula model. A formula correction made in July 2026 (Corpus Release 28) would produce higher royalty figures when the financial model is rerun. These figures are not contractual commitments. Contracted rates and volumes are confirmed during the planning phase after the partnership agreement is signed.

This page provides a plain-language overview for general community information purposes. All financial figures are estimates based on publicly available data and locked partnership parameters as of July 2026. Royalty projections are illustrative and not contractual commitments. Exact job numbers, environmental figures, and site locations are subject to detailed planning confirmation after partnership agreement execution. Carbotura, Inc. · cip.carbotura.com