Circular Offtake Proposal
NEOM — Phase Initial · Registry: registry-neom-v1
A 30-year Circular Supply Agreement converts NEOM construction and operational waste streams — anchored by 220 TPD of C&D fluff, the highest concentration in the KSA programme — into a Manufactured Goods Revenue Share returning to NEOM Company from Year 2 onward, at zero capital deployment. Programmatic commitment: 3 modules, 300 TPD, $165M Carbotura FDI. The most PIF-aligned engagement in the programme: both agreement counterparties are NEOM Company (PIF Direct).
CSA Configuration Options
NEOM is the only engagement in the KSA programme where both the CSA counterparty and the Manufacturing Site Deed counterparty are the same legal entity: NEOM Company (PIF Direct subsidiary). There is no RCJY or MODON involvement. SIRC is not involved. All feedstock supply, land, and operating license agreements flow through NEOM Company.
Option A — Standard Election
- Processing Service (Ijarah)
- NEOM Company pays for a defined manufacturing and processing service per ton processed
- Revenue Share (Musharakah)
- NEOM Company 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 NEOM waste management classification — under review. No legacy landfill on NEOM territory at programme initiation
- 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 NEOM's own procurement
- Target buyers
- OXAGON advanced manufacturing procurement (Carbon Fiber Precursor, Graphene Oxide) · NEOM contractors (Pozzolanic SCM — construction demand) · SINDALAH island resort (sustainable materials procurement)
- In-country premium
- Estimated +15% over export reference (ESTIMATED — WARN-04). NEOM is both authority and primary buyer — the tightest A-IC alignment in the programme
- Activation
- Requires OXAGON procurement 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 PIF Giga-Project Circular Economy
NEOM is a $500 billion giga-project under active construction — the largest single construction programme in the world. At peak construction, NEOM generates an estimated 800 TPD of construction and operational waste streams; the baseline (current active construction) is 500 TPD, rising toward 800 TPD as THE LINE, OXAGON, SINDALAH, and LEYJA approach concurrent construction phase.
The defining characteristic of the NEOM waste stream is C&D dominance: 220 TPD of Construction & Demolition fluff from active building — the highest C&D concentration in the KSA programme. Samsung C&T, one of the primary NEOM construction JV partners, operates an at-source waste reduction programme (targeting 40% reduction). Carbotura ACM processes the remaining 60% that leaves the site.
NEOM Company is both the authority counterparty and the primary ICO buyer. No arm's-length off-take negotiation is required — the same entity that authorises the CSA also authorises OXAGON procurement. This is the highest PIF-integration ratio in the programme.
OXAGON Advanced Manufacturing — Closed-Loop ICO
NEOM's construction generates C&D fluff and ASR. Carbotura converts these to Carbon Fiber Precursor (RC4) and Graphene Oxide (RC4). OXAGON's advanced manufacturing tenants — composite materials, aerospace, photonics — procure Carbon Fiber and Graphene Oxide. The same PIF principal closes the loop: construction waste in → advanced manufactured materials out → OXAGON procurement budget.
| RevCon™ Output | Stream origin | OXAGON demand driver | Buyer status |
|---|---|---|---|
| Carbon Fiber Precursor CRB-009 RC4 | C&D fluff / ASR | Composite materials manufacturing, aerospace/advanced automotive supply chain | CANDIDATE |
| Graphene Oxide CRB-010 RC4 | C&D / MSW | Energy storage, advanced composites, filtration systems | CANDIDATE |
| Pozzolanic SCM | Wastewater sludge | NEOM construction cement demand — NEOM contractors | CANDIDATE |
| High-Purity Graphite CRB-008 RC3 | C&D / workforce MSW | Battery materials, advanced manufacturing feedstock | CANDIDATE |
All buyer status CANDIDATE — no LOI at registry lock. WARN-05 applies.
Construction and Operations Feedstock Portfolio
Unlike other KSA regions, NEOM's feedstock network is not SIRC-subsidiary based — it is NEOM Company's own construction programme generating the feedstock:
- Samsung C&T JV — primary construction contractor. At-source 40% reduction programme; remaining 60% C&D fluff → ACM feedstock
- THE LINE construction — high-volume mixed construction waste including steel cladding, composite offcuts → C&D fluff and ASR streams
- OXAGON construction — industrial facility construction waste; higher composite material fraction
- SINDALAH / LEYJA — resort and nature destination construction; C&D and organic waste
- NEOM operational workforce — workforce MSW (50 TPD at peak construction population)
Circular Sukuk Opportunity
The CSA structure is compatible with an Islamic sukuk instrument. NEOM Company is the PIF's flagship giga-project — a Circular Sukuk backed by NEOM ACM outputs would be the highest-profile circular economy finance instrument in Vision 2030.
NEOM sukuk precedent: NEOM Company has previously issued green bonds / sukuk for infrastructure financing. A Carbotura Circular Sukuk backed by advanced manufactured goods from NEOM construction waste would be consistent with NEOM's sustainable development mandate and provide Sharia-compliant returns from a real manufactured goods asset base.
This document does not constitute a Sharia certification or sukuk prospectus. Formal Sharia Board review is recommended prior to CSA execution.
Deployment
Phase Roadmap — 3-Module Programme
BOO Structure — NEOM Single-Entity Configuration
Carbotura designs, finances, builds, owns, and operates. Zero capital from NEOM Company.
Both the CSA and the Manufacturing Site Deed counterparty are NEOM Company (PIF Direct subsidiary). There is no separate RCJY, MODON, or SIRC involvement. NEOM Company provides: feedstock supply commitment (CSA counterparty role), land and operating license within NEOM territory (Manufacturing Site Deed counterparty role), and OXAGON procurement as primary ICO buyer. All three roles flow through a single PIF-owned entity.
Direct FTE: 47 Phase Initial · 141 Full Programme (3 modules) (ESTIMATED — Subject to Nitaqat compliance; in-Kingdom composition confirmed at Feasibility Study with HRSD. NEOM's Saudization targets are independently governed by NEOM Company HR policy)
RevCon™ Output — Phase Initial (100 TPD)
100 TPD · 35,000 tpy · RC3 baseline · 350 operating days. Design-basis estimates. Not an offer. Full 3-module programme: 300 TPD · 105,000 tpy.
Construction and Organics (from C&D fluff / ASR / construction mixed / workforce MSW / ELT)
| Product | RevCon | Annual tpy (Phase Initial) ESTIMATED | Export Ref. $/ton |
|---|---|---|---|
| Carbon Fiber Precursor CRB-009 | RC4 | 875 | $15,000–$22,000 |
| Graphene Oxide CRB-010 | RC4 | 175 | $60,000–$100,000 |
| High-Purity Graphite CRB-008 | RC3 | 1,068 | $6,000–$10,000 |
| Carbon Black CRB-007 | RC2–RC3 | 2,188 | $800–$1,500 |
| Mineral Aggregate MIN-001 | RC1 | 4,200 | $30–$80 |
| Pozzolanic SCM | RC2 | 1,400 | $50–$120 |
NEOM's output profile emphasises RC4 outputs (Carbon Fiber, Graphene Oxide) aligned with OXAGON's advanced manufacturing procurement. No ash REE stream. No V₂O₅. All ESTIMATED.
CSA Terms
| CSA counterparty | NEOM Company (PIF Direct subsidiary) LOCKED |
|---|---|
| Site agreement counterparty | NEOM Company (PIF Direct subsidiary) — same entity LOCKED |
| Note | NEOM is the only KSA programme engagement with a single-entity bilateral structure. No RCJY, MODON, or SIRC involvement. |
| CSA structure | Ijarah (Processing Service) + Musharakah (Revenue Share) |
| Phase Initial volume | 35,000 tpy (100 TPD × 350 days) LOCKED |
| Full programme volume | 105,000 tpy (300 TPD × 350 days · 3 modules) |
| T0 | Q4 2028 ESTIMATED |
| Phase Initial COD | Q2 2031 ESTIMATED |
| Revenue Share lag | 13 months rolling — independent transaction ALWAYS |
| First Revenue Share | ~Q3 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 · $165M (SAR 618.75M) full programme (3 modules) LOCKED |
| PIF alignment | PIF owns NEOM Company (CSA counterparty, site counterparty, primary ICO buyer) — highest PIF-integration ratio in the programme |
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