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.
$55M Carbotura FDI
Phase Initial
Zero Authority capital
obligation
47 Direct FTE
Nitaqat-labeled, ESTIMATED
35,000 tpy toward
MWAN 2035
133,225 tCO₂e/yr
SGI contribution
9 Streams converted
to RC3+ output

Zero Authority Capital Deployment

Carbotura designs, finances, builds, owns, and operates the Advanced Circular Manufacturing centre. The Partner Authority's capital obligation is zero — at Phase Initial, Phase Medium, and Phase Expanded.

Without ACM

  • Ongoing disposal expenditure — no manufactured asset created
  • Cost base escalating at ~2.5%/yr
  • No REE recovery, no critical minerals output
  • No MWAN mandate progress
  • No SGI contribution
  • WtE ash remains a disposal liability for Veolia JV

With ACM (Option A)

  • Zero capital deployment — Carbotura capital only
  • Processing Service (Ijarah) — Year 1 outflow
  • Revenue Share (Musharakah) commences Month 14 — net surplus from Year 2 onward
  • RC4 critical minerals manufactured from circular feedstock
  • 35,000 tpy toward MWAN mandate
  • 133,225 tCO₂e/yr carbon avoidance

MWAN 2035 Mandate Contribution

National Center for Waste Management (MWAN)

Target: 85% industrial diversion by 2035
35,000 tpy Phase Initial contribution toward MWAN 2035 ESTIMATED
87.5× ACM Phase Initial vs GEMS current national capacity (400 tpy)
800+ New facilities needed nationally — ACM addresses the scale gap

All nine streams — MSW residuals, ELT, wastewater sludge, WtE ash, petcoke ash, contaminated recycling, ASR, commercial waste, C&D fluff — count toward MWAN diversion targets. Phase Initial addresses 100 TPD (35,000 tpy) from the highest-access streams immediately upon COD.

Phase Roadmap — MWAN Compliance

Phase TPD tpy COD Cumulative MWAN contribution
Phase Initial 100 35,000 Q2 2029 35,000 tpy ESTIMATED
Phase Medium 200 70,000 Q4 2030 70,000 tpy
Phase Expanded 300 105,000 Q2 2032 105,000 tpy

Saudi Arabia's Critical Minerals Strategy

Saudi Arabia's mineral wealth was revalued to SAR 9.375 trillion ($2.5 trillion) in 2025. Mining is now the third pillar of the national economy. Ma'aden's $110B investment plan requires processed REE feedstock. Carbotura ACM processing WtE ash provides it from existing waste infrastructure — no mining required, no import dependency.

Ce
Cerium oxide
RC4
WtE ash
La
Lanthanum oxide
RC4
WtE ash
Nd
Neodymium oxide
RC4
WtE ash · permanent magnets
Y
Yttrium oxide
RC4
WtE ash
Li
Lithium Carbonate
RC4
WtE ash · battery fraction
Co
Cobalt Sulfate
RC4
WtE ash · cathode material
V
Vanadium V₂O₅
WARN-08
Petcoke ash · VRFB feedstock
Ga
Gallium metal
RC4
Petcoke/coal ash · semiconductor

Saudi Arabia currently imports 100% of its REE separation and processing capacity. ACM from Jubail WtE ash produces the Kingdom's first circular-source domestic REE output. No new mines. No import dependency. From waste that currently goes to landfill.

IKTVA Alignment

IKTVA (In-Kingdom Total Value Add) is the mandatory National Content scoring program for major Saudi institutional buyers. ACM operating in RCJY territory qualifies as a Saudi-based manufacturer. Institutional buyers — Aramco, Ma'aden, SABIC — receive IKTVA credit for procuring from ACM, creating a procurement incentive independent of price.

ACM operating location
RCJY Jubail IC Phase II → qualifies as Saudi-based manufacturer
IKTVA-eligible outputs
REE suite · V₂O₅ · Gallium · Carbon Fiber Precursor · all manufactured outputs
National Content proxy
62% IKTVA proxy ESTIMATED
Nitaqat compliance
Resolved at Feasibility Study with HRSD WARN-03

Vision 2030 Contribution Pillars

Saudi Green Initiative (SGI)

133,225 tCO₂e/yr carbon avoidance contributes to the Kingdom's 278 million tonne SGI target. ESTIMATED

National Industrial Development and Logistics Program (NIDLP)

In-Kingdom advanced manufacturing, import substitution for critical minerals, and industrial supply chain localisation at RCJY Jubail.

National Minerals Program

Saudi mineral wealth: SAR 9.375 trillion. ACM REE from ash = domestic critical minerals production without primary mining. Aligned with Ma'aden $110B buildout.

Mubadara — Circular Economy Initiative

SIRC portfolio completion: every SIRC subsidiary residual converted to RC3+ manufactured output. Jubail as the model for Kingdom-wide circular manufacturing deployment.

RCJY Industrial Hub — Phase II Development

ACM at RCJY Phase II supports the industrial city's next-generation manufacturing mandate. Feedstock from existing SIRC subsidiary network — no new logistics infrastructure required.

Renewable Energy Storage — 110 GW Program

V₂O₅ from petcoke ash feeds Aramco's VRFB supply chain for Saudi Arabia's 110 GW renewable storage target. Aramco waste product → Aramco clean energy supply chain. WARN-08

Employment Creation ESTIMATED — Nitaqat-labeled

47 Direct FTE
Phase Initial
141 Indirect jobs
Phase Initial
62% National Content
IKTVA proxy
SAR 185M Annual economic impact
ESTIMATED

Direct FTE: Subject to Nitaqat compliance. In-Kingdom Saudization composition confirmed at Feasibility Study with HRSD (WARN-03). Roles span advanced manufacturing operations, quality control, logistics, safety, and administration.

Employment by Phase

Phase Direct FTE Indirect Total
Phase Initial (100 TPD) 47 141 188
Phase Medium (200 TPD) 94 282 376
Phase Expanded (300 TPD) 141 423 564

Environmental Impact

133,225 tCO₂e/yr
Carbon avoidance — SGI contribution ESTIMATED
35,000 tpy
Diverted from landfill — Phase Initial
~100%
Phase Initial volume diverted (vs ~10% State A)
9 streams
All converted to RC1–RC4 manufactured output

Saudi Green Initiative alignment: 133,225 tCO₂e/yr from Phase Initial contributes toward the Kingdom's 278 million tonne SGI target. At Phase Expanded (300 TPD), annual contribution reaches 133,225 tCO₂e/yr ESTIMATED.

SIRC Portfolio Completion

The Carbotura engagement closes the manufacturing loop for the entire SIRC subsidiary network at Jubail. Every ton that leaves a SIRC subsidiary as residual becomes RC3+ manufactured output through ACM:

SIRC Subsidiary Current residual ACM converts to RevCon tier
Yadoum MSW fluff → landfill Carbon Black, High-Purity Graphite RC2–RC3
Akam C&D fluff → landfill Mineral Aggregate, Carbon RC1–RC2
ELECTA ASR → landfill Carbon Fiber Precursor, Aromatics RC4
GEMS Industrial sludge → treatment + landfill Pozzolanic SCM, Metals RC2
Veolia JV (feedstock supplier) WtE ash → disposal liability REE suite, Li carbonate, Co sulfate RC4

Partnership Timeline

Q3 2026
Authority Feasibility Study Authorisation
Single action that preserves Q4 2026 T0. Resolves WARN-01, WARN-03, WARN-06, WARN-08.
Q4 2026 · Rabi' II 1448 AH
T0 — CSA Execution
Circular Supply Agreement signed. RCJY Manufacturing Site Deed initiated. Carbotura construction mobilisation begins.
Q2 2029 · Sha'ban 1450 AH
Phase Initial COD
100 TPD ACM operational. First Processing Service payments commence. 35,000 tpy toward MWAN mandate. ESTIMATED
July 2029 · Rajab 1451 AH
First Revenue Share
Manufactured Goods Revenue Share commences — 13 months after first Processing Service payment. DERIVED
Q4 2030 · Dhul-Hijjah 1452 AH
Phase Medium COD
200 TPD. REE and critical minerals volumes double. Employment doubles. ESTIMATED
Q2 2032 · Rajab 1454 AH
Phase Expanded COD
300 TPD. Full corridor deployment. ESTIMATED

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