Circular Offtake Proposal
Jazan Economic City — Phase Initial · Registry: registry-jazan-v1
A 30-year Circular Supply Agreement converts seven Jazan Economic City material streams — including 80 TPD of ACWA Power IGCC ash (first-of-kind processing nationally) and Saudi Arabia's only subtropical agricultural waste stream — into a Manufactured Goods Revenue Share returning to the Partner Authority from Year 2 onward, at zero Authority capital deployment. Programmatic commitment: 2 modules, 200 TPD, $110M Carbotura FDI.
CSA Configuration Options
Option A — Standard Election
- Processing Service (Ijarah)
- Authority pays for a defined manufacturing and processing service per ton processed
- Revenue Share (Musharakah)
- Authority receives a share of manufactured goods revenue — commences 13 months after the corresponding Processing Service payment, on a rolling monthly basis
- Capital obligation
- Zero — Carbotura designs, finances, builds, owns, and operates
- Year 2+ position
- Revenue Share exceeds Processing Service fee — generating a net surplus per ton processed
Option B — Sovereign Resource Royalty
- Processing Service Fee
- Zero
- Structure
- Different royalty mechanics — described in the formal Proposal document
- Capital obligation
- Zero
Option B+Exogenesis — Dual Royalty Streams
- Processing Service Fee
- Zero
- Exogenesis eligibility
- Exogenesis eligibility subject to RCJY Jazan landfill classification — under review
- Capital obligation
- Zero
Option A-IC — In-Country Revenue Participation Saudi-exclusive
- Base structure
- Option A terms, plus in-country premium on RevCon™ outputs sold to Saudi institutional buyers
- Target buyers
- Aramco Jizan VRFB supply chain (V₂O₅ from IGCC ash + petcoke ash) · Ma'aden phosphate operations (IGCC ash mineral co-products) · NEOM OXAGON (Carbon Fiber, Graphene Oxide) · Agricultural biochar buyers (subtropical farming sector)
- In-country premium
- Estimated +15% over export reference (ESTIMATED — WARN-04)
- IGCC ash V₂O₅ status
- WARN-08 — IGCC ash configuration distinct from combustion ash; engineering confirmation required before V₂O₅ included in client figures
- Activation
- Requires ICO anchor buyer LOI — WARN-05
- Capital obligation
- Zero
The Processing Service (Ijarah) and Manufactured Goods Revenue Share (Musharakah) are two independent transactions. They must not be combined, netted, or described as components of a single return.
Strategic Context
The Southern Gateway — Unique Feedstock Profile
Jazan Economic City occupies a unique position in the KSA programme: the southernmost deployment, on the Red Sea coast, hosting Saudi Arabia's only Integrated Gasification Combined Cycle (IGCC) power plant, the Kingdom's only subtropical agricultural zone, and a major petrochemical and steel industrial complex administered by RCJY (Royal Commission for Jubail and Yanbu).
Two streams in the Jazan feedstock profile are entirely unique to this region: the ACWA Power IGCC ash (80 TPD — no comparable stream exists elsewhere in the KSA programme) and the agricultural waste stream from Jazan's mango, banana, and tropical fruit farms. Carbotura ACM is the only processing pathway nationally for IGCC ash — the first-of-kind deployment in the programme.
RCJY administers the Jazan Economic City industrial zone. The SIRC CSA counterparty relationship mirrors the Jubail engagement — RCJY for site, SIRC for CSA, two independent agreements.
ACWA Power IGCC Ash — First-of-Kind Nationally
Integrated Gasification Combined Cycle (IGCC) ash is produced through high-temperature partial oxidation of feedstock — a slag-forming process that concentrates metals differently from conventional combustion. IGCC ash is typically richer in recoverable metals (V, Ni, Fe, trace REE) than equivalent mass combustion ash, due to the syngas chemistry. Carbotura ACM is the only configured processor for IGCC ash nationally. This is a first-of-kind deployment.
| Product | RevCon | Source mechanism | Status |
|---|---|---|---|
| Vanadium Pentoxide V₂O₅ WARN-08 | Outside RevCon Ref. | High-temperature gasification concentrates vanadium from heavy feedstock | ESTIMATED — engineering confirmation required |
| Nickel | RC2–RC3 MTL-011 | Co-concentrated with vanadium in heavy-feedstock IGCC slag | ESTIMATED |
| Iron / Steel metals | RC1 MTL-001 | Metallic fraction in IGCC slag | ESTIMATED |
| Trace REE suite | RC4 | Concentration mechanism under engineering review | ESTIMATED — WARN-08 |
WARN-08 — IGCC ash configuration is distinct from combustion petcoke ash. Engineering confirmation of IGCC-specific ACM configuration and ACWA Power ash analysis required before committing any IGCC ash product volumes in client-facing documents.
Agricultural Waste — Saudi Arabia's Only Subtropical Stream
Jazan is Saudi Arabia's only subtropical agricultural zone: mangoes, bananas, coconuts, papaya, and tropical fish farms. Agricultural residuals (50 TPD ESTIMATED) — crop stems, organic matter, aquaculture waste — convert via ACM to Biochar RC3 for soil amendment and carbon sequestration. This is a unique stream with no equivalent elsewhere in the KSA programme and no incumbent processor nationally.
SIRC Subsidiary Portfolio Completion
Carbotura processes the residual output of SIRC subsidiaries at Jazan, plus the unique RCJY industrial streams:
- Yadoum MSW → RDF (RC1). Non-RDF fluff = ACM feedstock
- ELECTA EoL vehicles → metals (RC1). ASR = ACM feedstock
- GEMS industrial hazardous management. Sludge = ACM feedstock
- ACWA Power IGCC — 2,400 MW IGCC plant, ash output = ACM feedstock (unique RCJY stream)
- Aramco Jizan Refinery petcoke combustion ash — co-produced vanadium stream (WARN-08)
Circular Sukuk Opportunity
The CSA structure is compatible with an Islamic sukuk instrument. The Jazan deployment has a distinctive sukuk asset profile: V₂O₅ from IGCC ash feeds into Aramco's VRFB supply chain for the 110 GW renewable energy programme — a clean energy transition narrative with a tangible manufactured goods base unique nationally.
RCJY bilateral alignment: RCJY administers the Jazan site. SIRC (PIF subsidiary) is the CSA counterparty. PIF also holds the strategic stake in ACWA Power — the IGCC plant operator and primary ash feedstock originator. Circular economy sovereignty: from PIF-affiliated power generation, through Carbotura ACM processing, to Aramco's renewable energy storage supply chain.
This document does not constitute a Sharia certification or sukuk prospectus. Formal Sharia Board review is recommended prior to CSA execution.
Deployment
Phase Roadmap — 2-Module Programme
Stream Priority — Phase Initial
BOO Structure & Dual-Counterparty Rule
- SIRC CSA (Saudi Investment Recycling Company) — feedstock supply terms, Processing Service, Manufactured Goods Revenue Share. SIRC is a 100% PIF subsidiary.
- RCJY Manufacturing Site Deed (Royal Commission for Jubail and Yanbu — Jazan Economic City zone) — land lease, industrial operating license, infrastructure access. Independent contract — RCJY is a separate entity from SIRC.
ACWA Power IGCC ash stream requires a third agreement with ACWA Power / RCJY — independent of the SIRC CSA. Engineering confirmation (WARN-08) must precede this agreement.
Direct FTE: 47 Phase Initial · 94 Full Programme (2 modules) (ESTIMATED — Subject to Nitaqat compliance; in-Kingdom composition confirmed at Feasibility Study with HRSD)
RevCon™ Output — Phase Initial (100 TPD)
100 TPD · 35,000 tpy · RC3 baseline · 350 operating days. Design-basis estimates. Not an offer. Full 2-module programme: 200 TPD · 70,000 tpy.
Carbon, Organics, and Unique Streams (from MSW / ELT / ASR / C&D / agricultural)
| Product | RevCon | Annual tpy (Phase Initial) ESTIMATED | Export Ref. $/ton |
|---|---|---|---|
| Carbon Black CRB-007 | RC2–RC3 | 2,188 | $800–$1,500 |
| High-Purity Graphite CRB-008 | RC3 | 1,068 | $6,000–$10,000 |
| Carbon Fiber Precursor CRB-009 | RC4 | 875 | $15,000–$22,000 |
| Aromatics (BTX) ARM-003–005 | RC3 | 3,589 | $900–$2,000 |
| Biochar (agricultural residuals — unique) | RC3 | 700 | $200–$600 |
| Mineral Aggregate MIN-001 | RC1 | 2,100 | $30–$80 |
Critical Minerals (from IGCC ash + petcoke ash) WARN-08 — engineering confirmation pending
| Product | RevCon | Stream | Export Ref. |
|---|---|---|---|
| Vanadium Pentoxide V₂O₅ WARN-08 | Outside RevCon Ref. | IGCC ash + Aramco Jizan petcoke ash | $8–12/kg |
| Nickel | RC2–RC3 MTL-011 | IGCC slag (co-concentrated with V) | $12–18/kg |
| Iron / Steel | RC1 MTL-001 | IGCC slag metallic fraction | $200–$400/ton |
All IGCC ash and V₂O₅ volumes TBD — WARN-08 engineering confirmation required. Not included in Option A base case. All ESTIMATED.
CSA Terms
| CSA counterparty | Saudi Investment Recycling Company (SIRC) — PIF subsidiary LOCKED |
|---|---|
| Site agreement counterparty | Royal Commission for Jubail and Yanbu (RCJY) — Jazan Economic City zone — separate entity LOCKED |
| IGCC ash agreement | Separate agreement: ACWA Power / RCJY WARN-08 — engineering confirmation prerequisite |
| CSA structure | Ijarah (Processing Service) + Musharakah (Revenue Share) |
| Phase Initial volume | 35,000 tpy (100 TPD × 350 days) LOCKED |
| Full programme volume | 70,000 tpy (200 TPD × 350 days · 2 modules) |
| T0 | Q2 2029 ESTIMATED |
| Phase Initial COD | Q4 2031 ESTIMATED |
| Revenue Share lag | 13 months rolling — independent transaction ALWAYS |
| First Revenue Share | ~Q1 2033 DERIVED |
| CSA minimum term | 30 years from Phase Initial COD |
| Continuation | Perpetual unless Non-Renewal Notice (Year 28+, 24-month notice) |
| Capital obligation | Zero LOCKED |
| Carbotura FDI commitment | $55M per 100 TPD module · $110M (SAR 412.50M) full programme (2 modules) LOCKED |
| PIF alignment | PIF owns SIRC (CSA counterparty). PIF holds strategic stake in ACWA Power (IGCC feedstock originator). Aramco V₂O₅ buyer is government / PIF-affiliated |
The CSA Exchange
- Waste streams assigned to Carbotura
- Land + landfill deed transferred to Carbotura
- Tax abatements (MISA + SEZA)
- MAMP prepayment — SIRC pays Carbotura
- $100M USD (SAR 375M)
- $55M USD (SAR 206M) per 100 TPD module
- Circular Royalty Stream
- Exogenesis Royalty — $50 USD (SAR 187.50) per tonne
- Authority capital at risk: $0