Circular Offtake Proposal
Jeddah Industrial City — Phase Initial · Registry: registry-jeddah-v1
A 30-year Circular Supply Agreement converts nine Jeddah Industrial City material streams — including 400 TPD Jeddah Islamic Port stream and Hajj-surge design basis of 10,700 TPD — into a Manufactured Goods Revenue Share returning to the Partner Authority from Year 2 onward, at zero Authority capital deployment. Programmatic commitment: 6 modules, 600 TPD, $330M 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 MODON Jeddah 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 participation on RevCon™ outputs sold to Saudi institutional buyers
- Target buyers
- SABIC (Carbon Black / Graphite — cross-region with Yanbu IC) · Red Sea Destination (sustainable materials procurement) · NEOM OXAGON (Carbon Fiber Precursor, Graphene Oxide)
- In-country premium
- Estimated +15% over export reference (ESTIMATED — WARN-04)
- Activation
- Requires ICO anchor buyer LOI confirmation — 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
Gateway City — Port, Pilgrimage, and Commerce
Jeddah is Saudi Arabia's commercial gateway — the primary entry point for Hajj pilgrimage (2.5 million+ annual pilgrims), home to Jeddah Islamic Port (the Kingdom's largest seaport by container volume), and the headquarters of the Red Sea tourism infrastructure programme.
The combination of permanent resident waste (6,114 TPD baseline) and Hajj season surge (10,700 TPD, 1.75×) creates a waste management challenge with no parallel in the Kingdom. Jeddah's industrial estate generates 400 TPD of port-associated commercial and packaging waste that currently has no advanced processing disposition — the highest-concentration single-source commercial stream in the programme.
MODON Authority Framework
MODON (Saudi Authority for Industrial Cities and Technology Zones) administers Jeddah's industrial estates. MODON and SIRC are separate legal entities — the CSA counterparty is SIRC (100% PIF subsidiary); the Manufacturing Site Deed counterparty is MODON. Two independent contracts.
Hajj Surge — Design Basis
Phase Initial (100 TPD) and the full 6-module programme (600 TPD) are designed to process at full throughput throughout the Hajj season surge. The CSA feedstock commitment is based on surge-period volume, not annual average. This is the correct engineering and contractual basis for Jeddah.
| Parameter | Value | Status |
|---|---|---|
| Baseline TPD | 6,114 TPD | ESTIMATED |
| Surge TPD (Hajj P90) | 10,700 TPD | ESTIMATED |
| Surge factor | 1.75× | ESTIMATED |
| Surge driver | Hajj season — 2.5M+ pilgrims · 4–6 weeks · annual recurrence | VERIFIED |
| ACM design basis | Phase Initial 100 TPD addresses surge-priority streams first | LOCKED |
SIRC Subsidiary Portfolio Completion
Carbotura processes the residual output of every SIRC subsidiary at Jeddah:
- Yadoum MSW → RDF for cement (RC1). Non-RDF fluff = ACM feedstock
- Akam C&D → aggregate (RC1). C&D fluff = ACM feedstock
- ELECTA EoL vehicles → metals (RC1). ASR = ACM feedstock
- GEMS industrial hazardous management. Industrial sludge = ACM feedstock
- Port logistics operators (Jeddah Islamic Port) commercial packaging and commercial waste — unique Jeddah stream
Circular Sukuk Opportunity
The CSA structure is compatible with an Islamic sukuk instrument. Jeddah's position as the gateway to the two holy cities makes this particularly appropriate for a Sharia-compliant circular economy instrument — manufactured goods revenue from a facility operating in the Hajj logistics corridor.
Jeddah-specific alignment: The Islamic Development Bank (IsDB) is headquartered in Jeddah and has active sustainable finance and circular economy mandates. A Circular Sukuk with Jeddah ACM as the asset base would align with IsDB's green sukuk programme while delivering tangible manufactured goods from Saudi Arabia's primary pilgrimage city.
This document does not constitute a Sharia certification or sukuk prospectus. Formal Sharia Board review is recommended prior to CSA execution.
Deployment
Phase Roadmap — 6-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.
- MODON Manufacturing Site Deed (Saudi Authority for Industrial Cities and Technology Zones) — land lease, industrial operating license, infrastructure access. Independent contract.
Direct FTE: 47 Phase Initial · 282 Full Programme (6 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 6-module programme: 600 TPD · 210,000 tpy.
Carbon and Organics (from MSW / commercial / port / ELT / ASR / C&D)
| Product | RevCon | Annual tpy (Phase Initial) ESTIMATED | Export Ref. $/ton |
|---|---|---|---|
| High-Purity Graphite CRB-008 | RC3 | 1,068 | $6,000–$10,000 |
| Carbon Black CRB-007 | RC2–RC3 | 2,188 | $800–$1,500 |
| Carbon Fiber Precursor CRB-009 | RC4 | 875 | $15,000–$22,000 |
| Graphene Oxide CRB-010 | RC4 | 175 | $60,000–$100,000 |
| Aromatics (BTX) ARM-003–005 | RC3 | 3,589 | $900–$2,000 |
| Mineral Aggregate MIN-001 | RC1 | 4,200 | $30–$80 |
Jeddah's feedstock profile is MSW/commercial/port-dominated at Phase Initial — no WtE ash stream, no petcoke ash. The ICO pathway focuses on Carbon Black (SABIC cross-region), Graphene Oxide and Carbon Fiber Precursor (NEOM OXAGON), and sustainable materials procurement for Red Sea Destination hospitality infrastructure. All ICO buyer status: CANDIDATE — no LOI at registry lock. WARN-05 applies.
CSA Terms
| CSA counterparty | Saudi Investment Recycling Company (SIRC) — PIF subsidiary LOCKED |
|---|---|
| Site agreement counterparty | Saudi Authority for Industrial Cities and Technology Zones (MODON) — separate entity LOCKED |
| CSA structure | Ijarah (Processing Service) + Musharakah (Revenue Share) |
| Phase Initial volume | 35,000 tpy (100 TPD × 350 days) LOCKED |
| Full programme volume | 210,000 tpy (600 TPD × 350 days · 6 modules) |
| T0 | Q2 2028 ESTIMATED |
| Phase Initial COD | Q4 2030 ESTIMATED |
| Revenue Share lag | 13 months rolling — independent transaction ALWAYS |
| First Revenue Share | ~Q1 2032 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 · $330M (SAR 1,237.50M) full programme (6 modules) LOCKED |
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