In-Country Off-take Study
Jazan / Southern Region — Phase Initial · Registry: registry-jazan-v1
All buyer status: CANDIDATE — no LOI at registry lock. WARN-05 applies. IGCC ash V₂O₅ buyer engagement requires WARN-08 engineering confirmation as prerequisite.
Jazan offers two nationally unique ICO streams unavailable in any other region: IGCC gasification ash V₂O₅ from ACWA Power's 2,400 MW complex (Saudi Arabia's first industrial-scale IGCC facility, producing fundamentally different ash chemistry from combustion petcoke), and agricultural biochar from Saudi Arabia's only subtropical crop corridor. Both streams address Saudi import dependency gaps — V₂O₅ for the 110 GW VRFB programme, and biochar for the Vision 2030 green infrastructure and soil carbon agenda. Subject to WARN-08 confirmation, the IGCC-to-VRFB loop at Jazan is a complete circular industrial system with PIF alignment at every node.
What This Means
- The ACWA Power–Aramco Jizan Loop: Saudi Aramco supplies heavy fuel feedstock to ACWA Power's 2,400 MW IGCC complex at Jazan. IGCC generates vanadium-bearing gasification slag and fly ash. Carbotura recovers V₂O₅ from that ash. V₂O₅ feeds into Aramco Jizan's VRFB supply chain for regional renewable energy storage. PIF holds a strategic stake in ACWA Power — the same sovereign entity is aligned at feedstock originator, ACM operator authority (via SIRC/RCJY), and beneficial owner of the buyer's supply chain. This is a fully PIF-aligned circular economy loop.
- IGCC vs combustion ash — first-of-kind nationally: IGCC gasification operates at temperatures and pressures where heavy metals (vanadium, nickel, iron) concentrate in the slag fraction at potentially higher recoverable concentrations than in combustion fly ash. Saudi Arabia has never had an IGCC facility before. There is no comparable V₂O₅ recovery precedent in the Kingdom. Carbotura's ACM is the first designated processor for this stream.
- Agricultural biochar — unique to Jazan: Saudi Arabia's only subtropical agricultural zone (mango, banana, coffee, papaya) generates crop residues that no other region in the Kingdom produces at commercial scale. Biochar from these residues addresses the Vision 2030 green infrastructure agenda — soil carbon sequestration, agricultural improvement, and carbon credit generation — with no domestic competitor.
- Carbon Black and aromatics from the tire, MSW, and commercial streams provide a carbon ICO base case that does not depend on WARN-08 confirmation — available from Phase Initial COD.
RevCon™ Output Baseline
RC3 baseline, 350 operating days. Phase Initial = 1 module, 35,000 tpy. Full programme = 2 modules, 70,000 tpy.
Critical Minerals — IGCC + Petcoke Ash All volumes TBD — WARN-08
| Product | Source | Volume | Export Ref. | Buyer (CANDIDATE) |
|---|---|---|---|---|
| Vanadium Pentoxide V₂O₅ | IGCC gasification slag (ACWA Power) | TBD — requires IGCC slag characterization | $8–$12/kg | Aramco Jizan VRFB supply chain WARN-08 |
| Vanadium Pentoxide V₂O₅ | Combustion petcoke ash | TBD — requires separate petcoke ash analysis | $8–$12/kg | Aramco Jizan VRFB supply chain WARN-08 |
| Nickel | IGCC slag + petcoke ash | TBD — co-concentrated with vanadium | $13–$18/kg | Ma'aden battery materials / industrial metals |
| Iron / Steel | IGCC gasification slag | Confirmed present — volume TBD | $0.3–$0.5/kg | Jazan IC steel sector (SABIC Hadeed-adjacent) |
Agricultural Biochar (unique to Jazan)
| Product | Feedstock | Volume ESTIMATED | Export Ref. $/ton | Buyer (CANDIDATE) |
|---|---|---|---|---|
| Biochar RC3 | Mango, banana, coffee, papaya crop residues | ~350 tpy Phase Initial · ~700 tpy full programme | $300–$600 | Ma'aden soil remediation / Vision 2030 green infrastructure |
Carbon and Organics (Phase Initial — 100 TPD)
| Product | RevCon | Annual tpy ESTIMATED | Export Ref. $/ton | Buyer (CANDIDATE) |
|---|---|---|---|---|
| Carbon Black CRB-007 | RC2-RC3 | 2,188 | $800–$1,500 | Jazan IC industrial buyers / SABIC distribution |
| Aromatics (BTX) | RC3 | 3,589 | $900–$2,000 | Jazan IC chemical supply chain |
| Carbon Fiber Precursor CRB-009 | RC4 | 875 | $15,000–$22,000 | NEOM OXAGON (programme-level relationship) |
| Mineral Aggregate MIN-001 | RC1 | 4,200 | $30–$80 | RCJY Jazan construction supply |
Buyer 1 — Aramco Jizan: V₂O₅ VRFB Supply Chain WARN-08
Status: CANDIDATE — WARN-08 — No LOI at registry lock. IGCC slag characterization and petcoke ash analysis required before any V₂O₅ volumes are stated in client documents. WARN-05 applies.
Aramco's Jazan operations — including the Jazan refinery complex and power facilities — create structural demand for domestically produced V₂O₅ as the 110 GW renewable energy programme expands grid-scale VRFB storage into the Southern Region.
- Jazan-specific demand: Saudi Arabia's 110 GW renewable programme includes wind and solar in the Southern Region (Aseer highlands, Red Sea coast). Grid-scale VRFB storage for Southern Region renewables requires V₂O₅. Aramco Jizan is the procurement anchor for Southern Region energy storage.
- IGCC characterization prerequisite: IGCC gasification ash chemistry is distinct from combustion petcoke ash. The vanadium content in Jazan IGCC slag requires dedicated analysis — separate from any Eastern Province petcoke ash analysis. Engineering confirmation (WARN-08) covers both streams independently.
- IKTVA alignment: V₂O₅ from Jazan ACM qualifies as domestically produced for Aramco's IKTVA calculation. Southern Region location means Aramco Jizan procurement receives full IKTVA credit.
Confirmation pathway: IGCC slag and petcoke ash sampling (WARN-08 initiation at T0) → concentration analysis → Aramco Jizan IKTVA supplier engagement → LOI. Timeline: 12–18 months from T0.
Buyer / Feedstock Alignment — ACWA Power: The IGCC Closed Loop
Note: ACWA Power is both a feedstock originator and a potential sustainability partner — not a direct product buyer. ACWA Power's IGCC complex generates the ash; Carbotura processes it; the extracted V₂O₅ is sold to Aramco Jizan. ACWA Power's interest is in converting its ash disposal liability into a closed-loop sustainability credential.
- PIF strategic alignment: PIF holds a strategic stake in ACWA Power. The same sovereign entity that owns the CSA counterparty (via SIRC) and the site authority (via RCJY) also has a strategic interest in the IGCC feedstock originator. This is a fully PIF-aligned value chain at every node.
- ACWA Power sustainability reporting: ACWA Power's ESG commitments require demonstrable waste disposition for the IGCC ash stream. Carbotura provides the certified circular manufacturing pathway — converting ACWA Power's ash disposal problem into a documented V₂O₅ recovery and carbon avoidance credit.
- IGCC feedstock agreement: ACWA Power ash requires a separate feedstock agreement independent of the SIRC CSA. This agreement is a prerequisite for IGCC ash processing — and a prerequisite for any IGCC V₂O₅ figure to appear in client documents (WARN-08).
- ACWA Power as reference: ACWA Power's endorsement of Carbotura's IGCC ash processing pathway carries significant weight in Saudi Arabia's renewable energy and industrial community — a reputational ICO benefit beyond the feedstock agreement itself.
Buyer 3 — Agricultural Biochar: Vision 2030 Green Infrastructure
Status: CANDIDATE — No LOI at registry lock. WARN-05 applies. Biochar volumes are seasonal and ESTIMATED.
Biochar from Jazan ACM's subtropical agricultural waste stream targets three buyer categories aligned with Saudi Arabia's Vision 2030 green infrastructure and environmental commitments:
- Ma'aden soil remediation programme: Ma'aden's mining operations in the Arabian Shield require soil remediation in disturbed land areas. Biochar is a proven soil carbon amendment for post-mining land rehabilitation. Jazan Biochar RC3 — produced from subtropical crop residues — provides a certified circular carbon input for Ma'aden's land stewardship programme.
- Saudi Green Initiative — afforestation: Saudi Arabia's commitment to plant 10 billion trees nationally (Saudi Green Initiative) requires soil amendment for arid and semi-arid reforestation zones. Jazan Biochar supports the Aseer highland and coastal green belt afforestation programmes — a natural geographic alignment.
- Agricultural sector buyers — Aseer/Tihamah: Saudi Arabia's agricultural modernization programme (precision farming, water efficiency) uses biochar as a soil water retention agent. The Tihamah coastal agricultural sector — which generates the feedstock — is also the primary buyer, creating a near-zero-logistics circular loop within the agricultural sector itself.
- Carbon credit generation: Biochar sequestration qualifies for voluntary carbon market credits (Puro.earth, Verra). Approximately 350 tpy Biochar Phase Initial sequesters approximately 700–1,050 tCO₂e equivalent. Carbon credits are an additive revenue stream independent of product sales.
Buyer 4 — Carbon Products: Jazan IC Industrial Supply Chain
Status: CANDIDATE — No LOI at registry lock. WARN-05 applies.
Jazan's carbon product ICO base case does not depend on WARN-08 resolution. Carbon Black, Aromatics, and Carbon Fiber Precursor are available from Phase Initial COD.
- Carbon Black: Jazan IC's rubber, tyre retreading, and polymer operations provide local demand. SABIC distribution network extends carbon product off-take nationally if local demand is insufficient at Phase Initial scale.
- Carbon Fiber Precursor: Programme-level NEOM OXAGON relationship (established via NEOM's own ACM deployment) provides an off-take pathway for Jazan CFP. Red Sea coastal proximity makes logistics competitive.
- Iron/Steel from IGCC slag: Jazan IC hosts steel sector operations adjacent to the IGCC complex. Iron and steel recovered from IGCC slag bottom fraction provides a direct in-city supply chain with near-zero transport cost.
Confirmation Pathway
- Carbon Black / Aromatics — Jazan IC industrial buyers (no WARN-08 required): Fastest path. Commence at T0. No engineering risk. Carbon products with defined industrial grades.
- ACWA Power IGCC feedstock agreement: Initiate at T0. Independent of SIRC CSA. Required as prerequisite for WARN-08 IGCC ash characterization. PIF alignment facilitates engagement.
- IGCC + petcoke ash sampling and analysis (WARN-08): Begin at T0 in parallel with CSA execution. Separate analysis streams for IGCC slag and combustion petcoke ash. Results gate all V₂O₅ buyer engagement.
- Aramco Jizan V₂O₅ LOI (after WARN-08): Southern Region IKTVA supplier engagement. Timeline: 12–18 months from T0.
- Agricultural biochar buyers: Ma'aden, SGI afforestation, agricultural sector. Seasonal biomass supply chain agreement. Timeline: 9–18 months from T0 (no engineering risk — established thermal processing pathway).
- NEOM OXAGON CFP: Programme-level relationship. Jazan CFP volumes are additive to NEOM ACM output.
Minimum Viable Off-take Package
- Carbon Black + Aromatics: Jazan IC buyers — satisfies base-case ICO requirement without WARN-08
- Biochar supply agreement: Ma'aden or SGI afforestation — additive, no engineering risk
- V₂O₅ LOI (conditional on WARN-08): elevates to Option A-IC — required for in-country premium election
Risk & Sensitivity
| # | Risk | Mitigation |
|---|---|---|
| 1 | IGCC slag V₂O₅ concentration below commercial threshold | WARN-08 — resolve before Aramco Jizan engagement. Base carbon ICO path holds. Combustion petcoke ash provides a second independent V₂O₅ opportunity. |
| 2 | IGCC ash hazardous classification adds processing complexity | Routes through GEMS hazardous license. Does not affect non-hazardous carbon streams. Phase Initial commences on non-hazardous streams; IGCC ash is medium-term. |
| 3 | Agricultural biomass volume seasonality | Seasonal blending protocol. ACM P90 design accommodates seasonal variation. Off-season capacity filled by MSW and commercial streams. Biochar is additive, not base-case volume. |
| 4 | Biochar buyer specification requirements — grade and carbon content | Ma'aden and SGI procurement are large-volume buyers with flexibility on specification for soil amendment applications. Sample protocol and certification pathway to be established at T0. |
| 5 | ACWA Power IGCC feedstock agreement timeline | PIF alignment accelerates negotiation. IGCC agreement is independent of SIRC CSA — Phase Initial carbon operations are not gated by IGCC agreement. |
| 6 | Jazan carbon product buyer volume limited by smaller industrial base | SABIC national distribution network provides export-to-programme off-take pathway for any carbon products not absorbed by Jazan IC local buyers. Carbon products are commodities with national market depth. |