Sharia-Structured Instrument Ijarah (manufacturing and processing service) + Musharakah (revenue participation in manufactured goods). These are two independent transactions — never combined, netted, or described as components of a single return. Formal Sharia Board review recommended prior to CSA execution.
$110M Carbotura FDI
Full Programme
Zero Authority capital
obligation
94 Direct FTE
Nitaqat-labeled, ESTIMATED
70,000 tpy toward
MWAN 2035
266,450 tCO₂e/yr
SGI contribution
2 National firsts:
IGCC ash · Biochar

Zero Authority Capital Deployment

Carbotura designs, finances, builds, owns, and operates. The Partner Authority's capital obligation is zero — at Phase Initial ($55M Carbotura FDI) and full programme ($110M). Jazan has the lowest FWDC in the programme (SAR 260/ton) — but the net Year 2+ surplus position is contractually independent of FWDC regardless.

Without ACM

  • IGCC gasification slag continues as unresolved disposal liability — no processor in the Kingdom
  • Subtropical biochar not produced — no domestic competitor will develop this independently
  • Southern Region has no fallback advanced processor for MWAN compliance
  • Aramco Jizan VRFB supply chain remains import-dependent
  • No SGI contribution from Southern Region industrial waste

With ACM (Option A)

  • Zero capital deployment — $110M Carbotura investment only
  • Processing Service (Ijarah) — Year 1 outflow
  • Revenue Share (Musharakah) commences Month 14 — net surplus Year 2 onward
  • IGCC ash processed — first-of-kind in Saudi Arabia (WARN-08)
  • Subtropical biochar: first domestic commercial production
  • 70,000 tpy MWAN compliance · 266,450 tCO₂e/yr SGI contribution

MWAN 2035 — No Southern Region Fallback

  • The Southern Region's only advanced processor: Jazan has no alternative advanced circular processor for industrial and municipal waste. If ACM is not deployed, the Southern Region's MWAN compliance path has no fallback. This is structurally different from Riyadh or Jeddah, where alternative processors may eventually emerge.
  • IGCC ash MWAN classification: Vanadium-bearing industrial ash requires a designated processor for MWAN compliance classification. ACM provides that pathway — the only designated processor for IGCC ash in Saudi Arabia (WARN-08 prerequisite for IGCC stream).
  • Full programme (70,000 tpy): 2 modules × 35,000 tpy — the Southern Region's full MWAN compliance contribution. No other facility will contribute to Jazan's 2035 target at this scale.
  • Agricultural biomass MWAN credit: Crop residues and agricultural processing waste are eligible for MWAN diversion credit. Subtropical biomass processing by ACM provides the Southern Region's agricultural sector with an auditable diversion pathway for the first time.

IGCC Circular Loop — PIF-Aligned Value Chain WARN-08

PIF alignment at every node of the IGCC loop — feedstock originator (ACWA Power), ACM authority (via SIRC/RCJY), and buyer's supply chain owner (Aramco Jizan VRFB).
  • The loop: ACWA Power IGCC gasification → vanadium-bearing slag → Carbotura V₂O₅ recovery → Aramco Jizan VRFB supply chain → 110 GW renewable energy storage
  • ACWA Power sustainability credential: ACWA Power converts its IGCC ash disposal liability into a circular economy asset with V₂O₅ recovery documentation. ACWA Power's ESG reporting benefits from a certified circular disposition for a first-of-kind industrial waste stream.
  • Aramco Jizan circular loop: Aramco supplies ACWA Power feedstock → ACWA Power generates ash → Carbotura recovers V₂O₅ → Aramco Jizan procures V₂O₅ for VRFB storage supporting Saudi Arabia's Southern Region renewables. Aramco's role as both feedstock supplier (indirect) and off-take buyer creates a uniquely complete circular credential.
  • Saudi Arabia's first IGCC ash processor: No facility has ever processed IGCC gasification slag for V₂O₅ recovery in Saudi Arabia. Jazan ACM establishes the Kingdom's first industrial-scale IGCC ash processing capability — a technology precedent with national strategic significance.
  • WARN-08: IGCC slag characterization and petcoke ash analysis required before any V₂O₅ volume is stated. Feasibility Study initiates both analyses as T0 priorities.

Agricultural Biochar — Saudi Arabia's First Subtropical Production

  • Uniquely available in Jazan: Saudi Arabia's only subtropical agricultural zone — Tihamah coastal plain and Aseer highlands — generates mango, banana, coffee, and papaya crop residues that no other region in the Kingdom produces at commercial scale. This feedstock is available only to Jazan ACM.
  • Ma'aden soil remediation: Ma'aden's post-mining land rehabilitation programme in the Arabian Shield requires soil carbon amendments. Biochar RC3 from subtropical crop residues provides a certified circular carbon input for Ma'aden's land stewardship — a procurement relationship with a PIF-owned buyer.
  • Saudi Green Initiative afforestation: Saudi Arabia's 10 billion tree commitment requires soil amendment for arid zone planting. Jazan Biochar supports SGI afforestation in the Aseer highland and coastal green belt zones — geographically aligned with the biochar feedstock source.
  • Agricultural sector circular loop: Tihamah coastal farmers generate crop residue → ACM processes to Biochar → Biochar applied to Tihamah farmland → soil water retention and carbon sequestration improve → farm productivity increases. A circular loop entirely within the Jazan agricultural zone.
  • Carbon credit revenue: Biochar soil application qualifies for voluntary carbon market credits (Puro.earth, Verra methodologies). ~700 tpy full programme Biochar sequesters an estimated 1,400–2,100 tCO₂e equivalent annually in additive carbon credit revenue.

Vision 2030 Alignment

Vision 2030 PillarJazan ACM Contribution
MWAN 85% diversion70,000 tpy full programme — Southern Region's only MWAN compliance pathway
Saudi Green Initiative266,450 tCO₂e/yr avoidance · Biochar carbon sequestration · Aseer highland green belt support
Critical Minerals StrategyV₂O₅ from IGCC + petcoke ash — Saudi Arabia's first IGCC slag V₂O₅ recovery (WARN-08)
110 GW Renewable ProgrammeV₂O₅ → Aramco Jizan VRFB → Southern Region grid-scale storage (WARN-08)
Agricultural sector developmentSubtropical biochar for Tihamah coastal farming — soil quality and water retention support
Ma'aden $110B minerals planDomestic Ni and V₂O₅ from circular feedstock · Biochar for soil remediation (WARN-08 for metals)

Employment Creation ESTIMATED — Nitaqat-labeled

PhaseModulesDirect FTEIndirect FTE
Phase Initial147141
Full Programme294282

All FTE ESTIMATED. Subject to Nitaqat compliance. Southern Region Saudization requirements confirmed with HRSD at Feasibility Study. 94 direct FTE at full programme — the most significant advanced manufacturing employer in Jazan IC. IKTVA proxy: 62% ESTIMATED.

Environmental Impact

  • Carbon avoidance: 266,450 tCO₂e/yr Phase Initial · 266,450 tCO₂e/yr full programme — toward SGI 278M tCO₂e/yr national target
  • Biochar sequestration (additive): ~700 tpy Biochar at full programme · estimated 1,400–2,100 tCO₂e/yr additional sequestration — not included in the 266,450 tCO₂e/yr process avoidance figure
  • Landfill diversion: 35,000 tpy Phase Initial · 70,000 tpy full programme — Southern Region's entire advanced diversion capacity
  • IGCC ash remediation: IGCC gasification slag — a complex industrial waste with no prior disposal pathway in Saudi Arabia — converted from a liability to a V₂O₅ manufacturing input (WARN-08). Eliminates a vanadium-bearing waste stream from the Saudi industrial landfill inventory.
  • Red Sea coastal protection: Southern Region landfill reduction protects the Red Sea coastal environment adjacent to NEOM and the Saudi-Yemen border zone — aligned with SGI marine and coastal conservation commitments.

ACWA Power Alignment — PIF Strategic Stake

  • PIF strategic stake in ACWA Power: PIF holds a strategic stake in ACWA Power — the same sovereign entity that owns the CSA counterparty (SIRC) and the site authority (RCJY) also has a strategic interest in the IGCC feedstock originator. This is a fully PIF-aligned value chain: feedstock originator, ACM authority, and buyer's supply chain owner are all within the PIF-aligned ecosystem.
  • ACWA Power ESG benefit: ACWA Power's ESG commitments require demonstrable circular waste disposition for the IGCC ash stream. ACM provides the certified processing pathway — converting ACWA Power's ash disposal liability into a documented V₂O₅ recovery and carbon avoidance credential for ACWA Power's own sustainability reporting.
  • Programme credibility: ACWA Power's endorsement of Carbotura's IGCC ash processing — as both feedstock originator and sustainability partner — carries significant weight with Aramco, Ma'aden, and the Southern Region industrial sector. This reputational benefit extends beyond the feedstock agreement itself.

Programme Timeline

MilestoneDateStatus
T0 — CSA executionQ2 2029ESTIMATED
IGCC + petcoke ash analysis beginsQ2 2029 (parallel — WARN-08)WARN-08
ACWA Power feedstock agreementQ2–Q4 2029ESTIMATED
Phase Initial CODQ4 2031ESTIMATED
First Revenue Share~Q1 2033DERIVED
Full Programme CODQ4 2033ESTIMATED

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