Circular Offtake Proposal
Jubail Industrial City — Phase Initial · Registry: registry-jubail-v3
A 30-year Circular Supply Agreement converts nine Jubail Industrial City material streams — including WtE ash processed for REE and critical minerals, petcoke ash processed for Vanadium V₂O₅, and SIRC subsidiary residuals — into a Manufactured Goods Revenue Share returning to the Partner Authority from Year 2 onward, at zero Authority capital deployment.
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
- Structure
- Two independent royalty streams
- Exogenesis eligibility
- Exogenesis not applicable for Jubail Phase Initial. Registry: lct_eligible_landfill = false
- 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
- Ma'aden (REE suite) · Saudi Aramco VRFB chain (V₂O₅) · NEOM OXAGON (Neodymium, Gallium, Carbon Fiber)
- In-country premium
- Estimated +15% over export reference — import substitution premium (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. Year 1 and Year 2+ positions are materially different — never average them.
Strategic Context
The Three-Pillar Convergence
Saudi Arabia's national industrial strategy rests on three pillars: hydrocarbons, petrochemicals, and — as of 2025 — mining and critical minerals. The Kingdom's mineral wealth was revalued to SAR 9.375 trillion ($2.5 trillion) in 2025. Ma'aden announced a $110 billion investment plan at the Future Minerals Forum in January 2026, targeting position among the world's top three mining companies.
Carbotura's ACM deployment at Jubail addresses this strategy at the circular economy level: REE and critical minerals recovered from ash streams that currently go to landfill. No mining required. No import dependency. Saudi Arabia currently imports 100% of its REE separation and processing capacity — ACM from WtE ash closes that gap from within the existing RCJY industrial footprint.
Competitive Context: Output Tier Distinction
The Veolia RCJY JV at Jubail 2 (WtE, 121,000 tpy input) and Carbotura ACM address the same material streams from different positions in the value chain:
- Veolia WtE incineration produces energy recovery from the feedstock and generates ~75–86 TPD of ash output — a cost liability with no current disposition.
- Carbotura ACM processes Veolia's ash output to recover REE, Lithium, Cobalt, and metals — manufactured RC4 outputs that Saudi Arabia currently imports 100% of.
Carbotura is the ash offtake partner that completes the Veolia circular economy loop. The competitive framing is structurally incorrect — there is no competition between WtE energy recovery and ACM critical minerals manufacturing from ash.
| Partner | Activity | Output Tier | Relationship to ACM |
|---|---|---|---|
| SUEZ/SIRC strategic partnership (Dec 2024) | WtE + energy recovery | Different output tier | Non-competing |
| SABIC/SIRC chemical recycling | RC1/RC2 feedstock recycling | Different output tier | Additive |
| Veolia/RCJY JV | WtE energy recovery | Energy — no ash disposition | Feedstock supplier |
SIRC Subsidiary Portfolio Completion
Carbotura's engagement with SIRC is not a single-stream arrangement — it is portfolio completion for the entire SIRC subsidiary network at Jubail. Each SIRC subsidiary generates a residual that currently has no manufacturing disposition:
- Yadoum produces RDF for cement (RC1). The non-RDF fraction and fluff = ACM feedstock
- Akam produces aggregate from C&D (RC1). The C&D fluff = ACM feedstock
- ELECTA recovers metals from EoL vehicles (RC1). The ASR = ACM feedstock
- GEMS manages industrial hazardous waste. Industrial sludge = ACM feedstock
The partnership pitch: "We process what your network cannot." Carbotura converts every SIRC subsidiary's residual problem into a manufactured output.
Circular Sukuk Opportunity
The CSA structure — Ijarah (Processing Service) + Musharakah (Revenue Share) — is compatible with an Islamic sukuk instrument. The manufactured output of ACM, including REE and critical minerals, constitutes a tangible asset base for a sukuk issuance.
A Circular Sukuk backed by Carbotura's RevCon™ output — specifically the critical minerals stream — would count toward SIRC's SAR 6 billion inward investment target while providing Sharia-compliant returns from real manufactured goods.
PIF bilateral alignment: PIF owns both SIRC (CSA counterparty) and Manara Minerals (Ma'aden JV, primary REE buyer). The same sovereign entity that signs the CSA is also the primary buyer of the manufactured critical minerals output — an integrated PIF-level strategic investment.
This document does not constitute a Sharia certification or sukuk prospectus. Formal Sharia Board review is recommended prior to CSA execution.
Deployment
Phase Roadmap
Stream Priority — Phase Initial
BOO Structure & Dual-Counterparty Rule
Carbotura designs, finances, builds, owns, and operates. Zero capital from Partner Authority.
- 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) — land lease, industrial operating license, infrastructure access. Independent contract — RCJY is a separate entity from SIRC.
WtE ash stream requires a third agreement: Veolia/RCJY ash offtake arrangement. WARN-06 — independent of the SIRC CSA.
Direct FTE: 47 Phase Initial (ESTIMATED — Subject to Nitaqat compliance; in-Kingdom composition confirmed at Feasibility Study with HRSD)
RevCon™ Output — Phase Initial
100 TPD · 35,000 tpy · RC3 baseline · 350 operating days. Design-basis estimates. Not an offer.
Carbon and Organics (from MSW / tires / ASR / commercial / contaminated / C&D)
| Product | RevCon | Annual tpy 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 |
Critical Minerals and REE (from ash streams)
| Product | RevCon | Stream | Export Ref. |
|---|---|---|---|
| Cerium oxide | RC4 MTL-016 | WtE ash | $2–4/kg |
| Lanthanum oxide | RC4 MTL-017 | WtE ash | $2–3/kg |
| Neodymium oxide | RC4 MTL-018 | WtE ash | $60–80/kg |
| Yttrium oxide | RC4 MTL-019 | WtE ash | $3–5/kg |
| Lithium Carbonate | RC4 MTL-044 | WtE ash | $10–14/kg |
| Cobalt Sulfate | RC4 MTL-046 | WtE ash | $12–18/kg |
| Vanadium Pentoxide V₂O₅ WARN-08 | Outside RevCon Ref. | Petcoke ash | $8–12/kg |
| Gallium metal | RC4 MTL-042 | Petcoke/coal ash | $220–350/kg |
Neodymium, Gallium, and Lithium carry the highest unit value. Volume is modest at Phase Initial but escalates with ash stream volume confirmation. All ESTIMATED
CSA Terms
| CSA counterparty | Saudi Investment Recycling Company (SIRC) — PIF subsidiary LOCKED |
|---|---|
| Site agreement counterparty | Royal Commission for Jubail and Yanbu (RCJY) — separate entity LOCKED |
| Operating entity | GEMS (SIRC industrial division) — Jubail facility |
| WtE ash offtake | Separate agreement: Veolia RCJY JV WARN-06 |
| CSA structure | Ijarah (Processing Service) + Musharakah (Revenue Share) |
| Phase Initial volume | 35,000 tpy (100 TPD × 350 days) LOCKED |
| T0 | Q4 2026 · Rabi' II 1448 AH ESTIMATED |
| Phase Initial COD | Q2 2029 · Sha'ban 1450 AH ESTIMATED |
| Revenue Share lag | 13 months rolling — independent transaction ALWAYS |
| First Revenue Share | July 2029 · Rajab 1451 AH 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 |
| PIF alignment | PIF owns SIRC (CSA counterparty) AND Manara Minerals (Ma'aden JV — primary REE buyer) |
| Carbotura FDI | $55M (SAR 206.25M) / 100 TPD Phase Initial 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