In-Country Off-take Study — Jeddah

Sharia-Structured Instrument Ijarah + Musharakah. Option A-IC in-country premium participation is an additive election. IsDB headquarters in Jeddah creates a unique Sharia-compliant green sukuk alignment for programme financing. Formal Sharia Board review recommended prior to CSA execution.

All buyer status: CANDIDATE — no LOI at registry lock. WARN-05 applies.

Jeddah's carbon-dominant ACM output serves four distinct buyer categories: SABIC (Carbon Black and Aromatics for the Western Region petrochemical supply chain), IsDB (Islamic Development Bank — as a potential Circular Sukuk instrument anchor aligned with the CSA's Ijarah/Musharakah structure), Red Sea Destination and tourism sector (sustainability credentials for Saudi Arabia's flagship tourism programme), and NEOM OXAGON (Carbon Fiber Precursor from ASR). Hajj surge capacity means Jeddah ACM operates at a scale that produces ICO volumes relevant to all four buyers simultaneously.

What This Means

Jeddah Islamic Port advantage: 400 TPD marine and port waste stream (ACCESSIBLE — separate port authority agreement) makes Jeddah ACM one of the few waste processing facilities globally with a direct port-side feedstock supply chain. This reduces logistics cost on the largest single feedstock stream and provides ACM with a structurally lower-cost input than inland competitors.
SABIC's Western Region distribution and the Jeddah petrochemical cluster require Carbon Black and Aromatics as chemical feedstocks. ACM at 600 TPD full programme produces 13,128 tpy Carbon Black and 21,534 tpy Aromatics — meaningful volumes against SABIC's Western Region procurement.
IsDB alignment: The Islamic Development Bank, headquartered in Jeddah, has announced green sukuk and sustainable development finance mandates aligned with Saudi Vision 2030. The CSA's Ijarah/Musharakah structure is compatible with IsDB's Islamic finance instruments — and ACM's manufactured goods output (real assets, real production) constitutes a tangible sukuk backing asset. This is not a buyer relationship but a potential programme financing alignment.
Red Sea Destination — Saudi Arabia's flagship luxury tourism programme on the Hejaz coast — has public sustainability commitments. ACM processing Jeddah's waste streams (including tourism-generated commercial waste) provides the waste-to-product provenance credentials that Red Sea Project's operators require to meet their sustainability targets.
No critical minerals dependency: Jeddah's ICO base case is entirely carbon and organics — no WARN-08 engineering confirmation required. All outputs are available from Phase Initial COD.

RevCon™ Output Baseline

All yields from the Circular Materials Catalog (CMC) reference — 100 TPD per module, RC3 baseline, 350 operating days. Phase Initial = 1 module. Full programme = 6 modules. Design-basis estimates. Not an offer.

Product	RevCon	Phase Initial tpy ESTIMATED	Full Programme tpy	Export Ref. $/ton	Primary Buyer (CANDIDATE)
Carbon Black CRB-007	RC2-RC3	2,188	13,128	$800–$1,500	SABIC Western Region
Aromatics (BTX) ARM-003-005	RC3	3,589	21,534	$900–$2,000	SABIC / Western Region refining
Carbon Fiber Precursor CRB-009	RC4	875	5,250	$15,000–$22,000	NEOM OXAGON
Graphene Oxide CRB-010	RC4	175	1,050	$60,000–$100,000	NEOM OXAGON / advanced materials
High-Purity Graphite CRB-008	RC3	1,068	6,408	$6,000–$10,000	SABIC / battery materials
Mineral Aggregate MIN-001	RC1	4,200	25,200	$30–$80	Jeddah construction supply chain

Hajj surge months produce elevated volume above RC3 baseline. Design-basis uses P90 surge as the capacity floor. During Hajj peak, ACM operates at surge capacity with all outputs proportionally elevated.

Buyer 1 — SABIC: Carbon Black + Aromatics

Status: CANDIDATE — No LOI at registry lock. WARN-05 applies.

SABIC's Western Region distribution network and the Jeddah petrochemical cluster anchor the Jeddah ACM carbon ICO pathway.

Carbon Black: 2,188 tpy Phase Initial; 13,128 tpy full programme. SABIC Western Region polymer compounding operations require Carbon Black as a standard input. ACM provides a domestic Western Region source, reducing the Jeddah-Jubail or Jeddah-Yanbu transport cost that currently applies to Eastern Province production.
Aromatics (BTX): 3,589 tpy Phase Initial aromatics from tire and ASR processing. SABIC's BTX integration means aromatics from ACM can feed directly into the Western Region petrochemical supply chain at competitive economics.
Cross-region alignment: SABIC's relationship with ACM at Riyadh and Jeddah simultaneously creates a programme-level procurement relationship — simplifying specification alignment and contract administration across both sites.

Confirmation pathway: SABIC Western Region procurement engagement → specification review → supply agreement. Fastest ICO path — carbon products, no engineering risk.

Buyer / Financier Alignment — IsDB: Islamic Finance + Circular Sukuk

Note: IsDB is a financing alignment candidate, not a product buyer. This section models a Circular Sukuk instrument backed by ACM manufactured goods output — consistent with the CSA's Ijarah/Musharakah structure.

The Islamic Development Bank, headquartered in Jeddah, is the world's largest multilateral development finance institution operating under Islamic finance principles. IsDB has announced green sukuk and sustainability-linked finance instruments aligned with Saudi Vision 2030.

CSA structural alignment: The CSA's Ijarah (Processing Service Fee) and Musharakah (Revenue Share) structure maps directly onto established Islamic finance instruments. The manufactured goods output of ACM constitutes a real, tangible asset base — the foundational requirement for Sharia-compliant sukuk.
Circular Sukuk opportunity: A sukuk instrument backed by Carbotura's RevCon™ output — specifically the Carbon Black, Graphite, and Carbon Fiber Precursor stream from Jeddah — provides IsDB with a Sharia-compliant green infrastructure investment vehicle aligned with its 2030 sustainability mandate.
SIRC SAR 6B inward investment target: A Circular Sukuk aligned with the IsDB framework would count toward SIRC's SAR 6 billion inward investment target while providing Sharia-compliant returns from real manufactured goods.
Geographic proximity: IsDB HQ is in Jeddah — the same city as the ACM deployment. Programme financing, audit, and sukuk administration benefit from co-location.

Confirmation pathway: IsDB Jeddah programme finance engagement → Sharia Board review of CSA structure → sukuk structuring and issuance. This track runs parallel to buyer LOI and does not gate CSA execution.

Buyer 3 — Red Sea Destination: Sustainability Credentials

Status: CANDIDATE — No LOI at registry lock. WARN-05 applies.

Red Sea Global — the developer and operator of Saudi Arabia's flagship luxury tourism destinations (The Red Sea, Amaala) — has public commitments to carbon neutrality and zero-waste-to-landfill operations by 2030.

Commercial waste stream: Tourism operations generate commercial waste that ACM processes. Red Sea Destination (and the Corniche / Jeddah Historic District tourism corridor) become feedstock originators whose waste receives a verifiable manufactured goods disposition — a key component of sustainability reporting and destination accreditation.
Carbon avoidance certificates: ACM's 799,350 tCO₂e/yr avoidance (Phase Initial) generates a carbon avoidance credit that Red Sea Destination can apply to its net-zero reporting. This is a procurement premium driver independent of product unit price.
Mineral Aggregate supply: Red Sea Destination's ongoing construction programme requires aggregate. Locally produced RC1 Mineral Aggregate from Jeddah ACM provides a carbon-documented supply chain input consistent with Red Sea Project's sustainability procurement standards.

Confirmation pathway: Red Sea Global sustainability procurement engagement + destination operator framework → supply and sustainability reporting agreement. Timeline: 12–18 months from T0.

Buyer 4 — NEOM OXAGON: Carbon Fiber Precursor

Status: CANDIDATE — No LOI at registry lock. WARN-05 applies.

OXAGON's advanced manufacturing tenants require Carbon Fiber Precursor and Graphene Oxide as base inputs. Jeddah ACM — 875 tpy CFP Phase Initial, 5,250 tpy full programme — provides a Red Sea regional supply point complementary to Riyadh ACM's larger CFP output.

Jeddah's proximity to NEOM by sea (Red Sea corridor) makes Jeddah ACM a logistics-competitive CFP supply point for OXAGON alongside the Riyadh programme volumes.
Programme-level OXAGON relationship (established through NEOM's own ACM deployment) provides a pre-existing procurement channel for Jeddah CFP and GO output.

In-Country Premium Rationale

Product	Import substitution driver	Estimated premium ESTIMATED — WARN-04
Carbon Black RC2-RC3	Western Region supply chain — domestic sourcing reduces transport cost vs. Eastern Province	+8–15%
Carbon Fiber Precursor RC4	No domestic CFP production — import from Japan/US	+15–22%
Sustainability / carbon credit premium	Red Sea Destination sustainability procurement — provenance premium for certified circular inputs	+5–12% (destination-specific)

All premiums ESTIMATED. WARN-04 applies. Base case holds without premium.

Confirmation Pathway

SABIC Western Region — CB + Aromatics (fastest path): No engineering risk. Carbon products with defined industrial grades. Existing SIRC-SABIC procurement relationship.
Red Sea Destination — sustainability procurement: Sustainability credential premium available quickly; commercial waste stream inclusion provides mutual benefit. No complex specification requirement.
NEOM OXAGON — CFP: Programme-level relationship (established via NEOM deployment). Jeddah CFP volumes are additive to Riyadh programme.
IsDB — Circular Sukuk: Long-track financing alignment. Runs parallel to buyer LOI with no bearing on CSA execution timeline.

Risk & Sensitivity

#	Risk	Mitigation
1	Hajj surge timing creates inventory management challenge for buyers	ACM surge design produces excess output during Hajj. Buyer supply agreements include seasonal volume provision. Carbon Black and aggregate have stable storage characteristics.
2	Red Sea Destination procurement timeline linked to giga-project schedule	Option A base case does not require Red Sea LOI. Sustainability premium is additive. Tourism waste stream is available regardless of procurement agreement status.
3	IsDB Circular Sukuk structuring timeline is long	IsDB alignment is a financing track, not a product buyer. CSA execution does not depend on sukuk structuring. Sukuk can be pursued in parallel on a 24–36 month horizon.
4	Port authority agreement for Jeddah Islamic Port stream	Port waste stream is an independent feedstock agreement separate from SIRC CSA. Phase Initial can commence on non-port streams while port agreement is negotiated.