Executive Brief — Riyadh

Sharia-Structured Instrument Ijarah (manufacturing and processing service) + Musharakah (revenue participation in manufactured goods). Two independent transactions — never combined or netted. Formal Sharia Board review recommended prior to CSA execution.

Saudi Arabia's largest single ACM deployment. 21% of national waste volume. One action required by Q3 2027.

Opening

Riyadh generates an estimated 7,300 TPD of municipal and industrial waste — the single largest waste corridor in Saudi Arabia, accounting for approximately 21% of national volume. Seven material streams are addressable by ACM: MSW residuals, End-of-Life Tires, wastewater sludge, contaminated recycling, Automotive Shredder Residue, commercial waste, and C&D fluff. Phase Initial targets 100 TPD (1 module, $55M Carbotura FDI) at Q2 2030 COD, scaling to the full 1,000 TPD programme ($550M Carbotura FDI) across 10 modules.

Gap 1

MWAN Mandate

85% diversion from landfill by 2035. As the capital city processing 21% of national waste, Riyadh's compliance contribution is uniquely significant. No MWAN compliance without advanced processing infrastructure.

350,000 tpy toward 2035 at full programme

Gap 2

Advanced Carbon Import Dependency

Saudi Arabia imports Carbon Fiber Precursor, High-Purity Graphite, and Graphene Oxide — all critical inputs for Vision 2030's industrial and EV supply chain. Riyadh ACM produces these domestically from existing waste streams.

0 domestic CFP / HP Graphite / GO production

Carbotura Phase Initial (100 TPD, Q2 2030 COD) closes both gaps simultaneously. $550M Carbotura FDI into the national capital at full programme scale.

The Decision

THIS BRIEF MODELS OPTION A — STANDARD ELECTION

Options B, B+Exogenesis, and Option A-IC (in-country premium on Carbon Black, Graphite, and CFP sales to SABIC, Aramco Materials R&D, and NEOM OXAGON) are described in the Proposal and ICO Study.

The Circular Supply Agreement authorises Carbotura to operate an Advanced Circular Manufacturing centre at MODON Riyadh (Manufacturing Site Deed: MODON · CSA: Saudi Investment Recycling Company (SIRC), 100% PIF subsidiary). Two independent agreements — two independent counterparties.

Processing Service (Ijarah): Authority pays for a manufacturing and processing service per ton processed — Year 1
Manufactured Goods Revenue Share (Musharakah): Authority receives a share of manufactured output revenue, 13 months after each corresponding Processing Service payment — from Month 14 onward
Zero capital obligation: Carbotura designs, finances, builds, owns, and operates. LOCKED.

Scale sequence: Phase Initial (100 TPD, 1 module) → Phase Medium (300 TPD) → Phase Expanded (600 TPD) → Full Programme (1,000 TPD, 10 modules). Each phase is a separate module addition — Authority exercises no capital at any phase.

Key Facts

Addressable streams	MSW residuals · ELT · Wastewater sludge · Contaminated recycling · ASR · Commercial · C&D fluff	LOCKED
Total addressable TPD	7,300 TPD ESTIMATED (21% national)	ESTIMATED
Phase Initial	100 TPD · 35,000 tpy · 1 module	LOCKED
Full programme	1,000 TPD · 350,000 tpy · 10 modules	LOCKED
Carbotura FDI (Phase Initial)	$55M	LOCKED
Carbotura FDI (full programme)	$550M	LOCKED
Revenue Share lag	13 months rolling · independent transaction	ALWAYS
Capital obligation	Zero	LOCKED
T0	Q4 2027	ESTIMATED
Phase Initial COD	Q2 2030 · Sha'ban 1452 AH	ESTIMATED
First Revenue Share	~Q3 2031	DERIVED
Direct FTE (Phase Initial)	47 Subject to Nitaqat compliance — ESTIMATED	ESTIMATED
Direct FTE (full programme)	470 Subject to Nitaqat compliance — ESTIMATED	ESTIMATED
Carbon avoidance (full programme)	1,332,250 tCO₂e/yr · SGI contribution	ESTIMATED
MWAN contribution (full programme)	350,000 tpy toward 2035 mandate	ESTIMATED
Primary ICO buyers (CANDIDATE)	SABIC Riyadh · Aramco Materials R&D · NEOM OXAGON · NIDLP	CANDIDATE
Site agreement counterparty	MODON (National Industrial Development Company)	LOCKED
CSA counterparty	Saudi Investment Recycling Company (SIRC) — 100% PIF subsidiary	LOCKED

What Delay Costs

The CSA reserves Carbotura's manufacturing commitment to Riyadh. Once executed, ACM is built on Carbotura capital — the Revenue Share stream is locked.

Each 12-Month T0 Slip

MWAN 2035 compliance window shortens — Riyadh's 21% national volume creates the largest single compliance exposure in the programme
Forfeits one full year of Revenue Share at full programme scale
SABIC, Aramco, and NEOM OXAGON off-take relationships delayed — competing domestic carbon processors may enter the market
COD slips to Q2 2031 → only 4 years of MWAN compliance before the 2035 mandate

Call to Action

Authorise the Authority Feasibility Study — the single action that preserves Q4 2027 T0.

The Feasibility Study resolves:

MODON Riyadh IC actual gate rates (WARN-01)
MODON Phase II land allocation — 15,000–25,000 m² per 100 TPD module
NCEC manufacturing facility classification
Nitaqat tier with HRSD (WARN-03)
SABIC and Aramco Materials R&D off-take engagement (first ICO track)

Authorization required by Q3 2027 to preserve Q4 2027 T0.

Contact: info[at]carbotura.com

Source Basis

Registry-riyadh-v1 · SIRC (sirc.sa) · PIF (pif.gov.sa) · MODON (modon.gov.sa) · MWAN (mwan.gov.sa) · Saudi National Minerals Program 2025 · Exchange-rates.org SAR/USD 3.75 May 2026. Financial projections: Carbotura Circular Advantage modeling, RC3 baseline, standard contractual parameters. All figures ESTIMATED unless LOCKED. This document does not constitute a Sharia certification or sukuk prospectus.