What this document is
The action instrument. This brief distils the Waste Study, the Circular Supply Proposal and the Economic Impact Report into a single decision frame for Glasgow City Council. It states the capacity position, the Circular Supply Agreement structure, the illustrative economics, what delay costs, and one call to action: execute the LOI/MOU. No new figures are introduced here.
- Glasgow City Council has ~1,014 TPD of addressable manufacturing feedstock committed to long-term disposal under the existing GCC EfW contract, with Greenoakhill landfill transitioning to closure by end-2027 under Scotland’s BMW ban. The exposure is a capacity and cost-escalation position, not a one-off price question.
- Carbotura offers a single commercial structure — the Circular Supply Agreement: a Beneficiation Fee (TMC Fee) paid by the Council on delivered feedstock, and a Circular Royalty™ paid by Carbotura from product revenues. There is no election to make, and the two flows are reported as separate transactions and never netted.
- Under the CSA the facility is privately financed on a Build-Own-Operate basis: zero Council capital cost, zero construction debt, and a Circular Royalty™ beginning 13 months after the corresponding Beneficiation Fee payment and escalating for the full 30-year Term. All figures GBP; IFRS / UK GAAP.
existing GCC EfW contract expires ~2040–41 — Glasgow has no confirmed successor for 145 TPD of contracted residual MSW
The existing GCC EfW contract Joint Committee Agreement — signed December 2013 with Fortum Glasgow Ltd — commits approximately 145 TPD of Glasgow's contracted residual MSW to the South Clyde Energy Centre (SCEC) through approximately 2040–41. When that contract expires, Glasgow has no confirmed successor infrastructure for that volume. Working backward from 2040, the latest a Waste Study can be authorised and still have Phase Expanded ACM infrastructure operational before the contract horizon is approximately 2032–33. The recommended authorisation date is 2026. Every year of delay compresses that buffer and cannot be recovered.
Glasgow City Council generates approximately ~1,014 TPD of manufacturing feedstock annually. Of that, approximately 145 TPD flows to South Clyde Energy Centre (SCEC), operated by Fortum Glasgow Ltd. The remaining stream — recycling, organics, and non-contracted fractions — is the immediate feedstock universe for Phase Initial.
Carbotura's ACM facility converts residual waste streams into synthetic graphite, graphene compounds, and recovered minerals using the MCR process — anoxic, oxygen-free, no combustion. Zero Council capital cost. Zero construction debt. Zero operating liability. Glasgow's sole financial obligation, under the Circular Supply Agreement (CSA), is the Beneficiation Fee (TMC Fee) on delivered feedstock. From 13 months after corresponding Beneficiation Fee payment, the Circular Royalty™ returns more than was paid.
Phase Initial at 300 TPD can be commissioned and operational before the existing GCC EfW contract expires. Phase Expanded at 1,000 TPD addresses Glasgow's full addressable feedstock ceiling. The CSA structure does not require engaging Fortum Glasgow Ltd on the existing SCEC contract — Phase Initial draws from non-contracted volumes; Phase Expanded phases in as the Greenoakhill landfill approaches its end-2027 closure.
Five structural facts for Glasgow City Council
The Viridor South Clyde Energy Centre (SCEC) contract absorbs 145 TPD of residual MSW through ~2040–41. Glasgow has no confirmed infrastructure for that volume after contract expiry. The latest a Waste Study can be authorised and still have Phase Expanded operational before 2040 is approximately 2032–33. Every year of inaction forecloses one year of buffer. Authorising in 2026 preserves the maximum window.
Glasgow's financial exposure is limited to the Beneficiation Fee — a per-tonne Beneficiation Fee set below Glasgow's verified blended disposal cost. No construction debt, no planning expenditure for infrastructure the Council does not own, no operating liability. The 30-year CSA is a Carbotura obligation backed by step-in rights and a Parent Performance Guarantee.
Year 1 Beneficiation Fee at Phase Initial (300 TPD): approximately £33.9M. Year 2 Circular Royalty™: approximately £40.8M. Gross cost displacement is quantified separately; both flows are reported independently. At steady state, the Circular Royalty™ is designed to exceed the Beneficiation Fee on a per-tonne basis.
The Greenoakhill landfill has been identified as a qualifying Exogenesis™ Royalty candidate — converting accumulated legacy landfill material into a structured dual-stream payment alongside the primary CSA. Subject to Waste Characterization Study confirmation. Stacks alongside the Circular Royalty™ as a CSA add-on — does not alter primary CSA commercial terms.
The Scottish Government's Beyond Recycling strategy and circular economy targets require progressive diversion from landfill and combustion. ACM operating under manufacturing classification (SIC Sector C) produces materials — synthetic graphite, graphene compounds, recovered minerals — that enter industrial supply chains rather than being combusted. Glasgow's ACM pathway is compliant with Scotland's post-WTE strategic direction and avoids long-term dependency on combustion-based ERF capacity.
One commercial structure for Glasgow City Council
Carbotura offers a single commercial structure for this and every engagement: the Circular Supply Agreement (CSA) — Beneficiation Fee (TMC Fee) paid by the Council on delivered feedstock, and Circular Royalty™ paid by Carbotura from product revenues. There is no election to make. A universal Exogenesis™ bonus stacks alongside the Circular Royalty™.
Beneficiation Fee (TMC Fee) + Circular Royalty™
- Beneficiation Fee: £100/tonne planning basis · 2.5%/yr escalator
- Circular Royalty™: 120% of the current-year Beneficiation Fee, +1pp/yr
- Royalty commencement: 13 months after corresponding Beneficiation Fee payment after corresponding Beneficiation Fee payment (rolling monthly)
- 30-year CSA term · perpetual continuation language
- Parent Performance Guarantee · Zero Council capex
- Regulatory Predicate Transition (RPT) required
- IFRS / UK GAAP accounting treatment
The Greenoakhill landfill has been identified as a qualifying Exogenesis™ Royalty candidate — converting accumulated legacy landfill material into a structured dual-stream payment alongside the primary CSA. This converts a legacy disposal liability into a royalty-generating instrument without altering primary CSA terms.
Stacks alongside the Circular Royalty™. Subject to Waste Characterization Study confirmation.
Subject to Waste Characterization Study confirmationKey figures at a glance
2.5%/yr escalator
+£5.95M Community Surplus (differential, not netted)
no successor confirmed
No public construction debt
The Circular Supply Agreement (CSA)
| Feature | The CSA · Beneficiation Fee (TMC Fee) + Circular Royalty™ |
|---|---|
| Circular Royalty™ | ✓ Included |
| Beneficiation Fee | ✓ £100/t · 2.5%/yr |
| Royalty commencement | 13 months after corresponding Beneficiation Fee payment after corresponding Beneficiation Fee payment (rolling monthly) |
| Exogenesis™ Royalty (Greenoakhill) | ✓ Available — subject to Waste Characterization Study confirmation |
| existing GCC EfW contract successor | ✓ Phase Expanded absorbs contracted stream at contract expiry |
| Parent Performance Guarantee | ✓ Included |