Sharia-Structured Instrument Ijarah (manufacturing and processing service) + Musharakah (revenue participation in manufactured goods). Two independent transactions — never combined, netted, or described as components of a single return.
All financial figures prepared under IFRS. SAR primary / USD secondary. SAR/USD 3.75 (pegged, VERIFIED). Figures marked ESTIMATED unless LOCKED.
Dependency Note

State A sourced from Feedstock Study (nine-stream feedstock profile, FWDC SAR 265/ton ESTIMATED). State B sourced from Proposal. Inherited warnings: WARN-01 (FWDC), WARN-02 (feedstock volume), WARN-03 (Nitaqat).

Nine streams. Saudi Arabia's largest single ACM deployment. The same 1,000 TPD full-programme deployment that addresses 350,000 tpy toward the MWAN 2035 mandate also delivers the Kingdom's most significant advanced carbon manufacturing footprint — at zero Authority capital, generating a net surplus from Year 2 onward. Phase Initial: 100 TPD · 1 module · $55M Carbotura FDI.

Decision Summary

THIS EIR MODELS OPTION A — STANDARD ELECTION

Options B and B+Exogenesis carry no Processing Service Fee. Option A-IC models in-country premium on Carbon Black, Graphite, and Carbon Fiber Precursor streams to SABIC, Aramco, and NEOM OXAGON. Exogenesis eligibility under review.

Parameter State A — Current System State B — Option A (ACM)
Disposal cost Ongoing — escalating at ~2.5%/yr ESTIMATED Processing Service (Ijarah) — Year 1 net outflow only
Capital obligation Ongoing spend — no asset created Zero LOCKED
Year 1 net Disposal cost — no manufactured output Processing Service paid — 13-month pre-royalty period
Year 2+ net Disposal cost escalating at ~2.5%/yr Revenue Share exceeds Processing Service — net surplus
Year 30 net Disposal cost ~2.1× Year 1 Revenue Share ~2.9× Year 2 rate
Advanced carbon output None — landfilled or exported High-Purity Graphite, Carbon Black, Carbon Fiber Precursor, Graphene Oxide — RC3–RC4
MWAN contribution None 350,000 tpy (full programme) toward 2035 mandate ESTIMATED
Carbon avoidance 0 tCO₂e/yr 1,332,250 tCO₂e/yr full programme toward SGI ESTIMATED
Employment No new in-Kingdom FTE 470 direct FTE full programme + 1,410 indirect ESTIMATED — Nitaqat-labeled
Cost of Delay — Each 12-Month T0 Slip
  • Compresses MWAN compliance contribution by 12 months against 2035 mandate
  • Delays Saudi Arabia's largest carbon manufacturing deployment by 12 months
  • Forfeits one full year of Revenue Share that would have commenced at Month 14
  • At 10-module scale: 12-month delay impact is ~10× the single-module figure

State A — Current System Baseline

Nine-Stream Disposal Cost All ESTIMATED — WARN-01

  • SIRC subsidiary residuals (MSW fluff, C&D, ASR): SAR 140–200/ton — MODON landfill gate rate
  • Commercial waste (SEEC/private): SAR 150–220/ton
  • ELT / tires: SAR 200–400/ton equivalent — export logistics + compliance
  • Contaminated recycling: SAR 140–180/ton — no incumbent processor
  • Wastewater sludge: SAR 120–180/ton (NWC)
  • Blended FWDC: SAR 265/ton · $70.67/ton ESTIMATED ⚠ WARN-01

State A Cost Trajectory — FWDC at 2.5%/yr from SAR 265/ton

Year 5 ~SAR 300/ton
Year 10 ~SAR 339/ton
Year 30 ~SAR 555/ton
Cumulative 30-year State A (Phase Initial, 35,000 tpy) ~SAR 405,000,000 ESTIMATED
State A Structural Position: State A produces no manufactured output, no advanced carbon, no Vision 2030 contribution, no MWAN diversion credit. Saudi Arabia's national capital — generating 21% of national waste — continues without an advanced materials manufacturing pathway. MODON disposal infrastructure bears the escalating cost.

State B — Deployment Baseline

Term Phase Initial Full Programme Status
Capacity 100 TPD · 1 module 1,000 TPD · 10 modules LOCKED
Annual volume 35,000 tpy 350,000 tpy LOCKED
Carbotura FDI $55M (SAR 206.25M) $550M (SAR 2,062.50M) LOCKED
Revenue Share escalator +1 percentage point/yr LOCKED
Revenue Share lag 13 months rolling from corresponding fee payment ALWAYS
T0 Q4 2027 ESTIMATED
Phase Initial COD Q2 2030 ESTIMATED
First Revenue Share ~Q3 2031 DERIVED

Delta Analysis

YEAR 1 AND YEAR 2+ ARE MATERIALLY DIFFERENT — NEVER AVERAGE

Year 1: Authority pays Processing Service (Ijarah). Receives zero Revenue Share. Net: outflow only — 13-month pre-royalty period from Phase Initial COD.

Month 14 onward: Revenue Share (Musharakah) commences on a rolling monthly basis, 13 months after each corresponding Processing Service payment. Independent transaction.

Steady state Year 2+: Revenue Share exceeds Processing Service — net surplus position per ton processed.

30-Year Phase Delta (Option A, Phase Initial — ESTIMATED)

Metric Year 1 Year 2+ Year 10 Year 30
State A disposal cost direction Base +2.5% ~+28% ~+109%
State B Revenue Share vs Processing Service Pre-royalty (zero Revenue Share) Revenue Share > Processing Service Spread widening annually Revenue Share ~2.9× Year 2 rate
Net Authority position Year 1: outflow only Year 2+: net surplus Surplus growing Surplus ~3× Year 2
MWAN compliance Phase Initial volume begins 35,000 tpy/yr Phase Initial Up to 350,000 tpy/yr full programme Full programme throughput

All ESTIMATED. Processing Service and Revenue Share are independent transactions — not combined or netted in this table.

FWDC Sensitivity — Net Surplus Is Independent of Disposal Cost

FWDC Year 1 gross displacement (Phase Initial) Net Year 2+ surplus
SAR 200/ton SAR 7,000,000/yr ESTIMATED Unchanged — contractual LOCKED
SAR 265/ton (base) SAR 9,275,000/yr ESTIMATED Unchanged — contractual LOCKED
SAR 360/ton SAR 12,600,000/yr ESTIMATED Unchanged — contractual LOCKED

Net Year 2+ surplus is INDEPENDENT of FWDC. Fee and Revenue Share are contractual fixed rates. FWDC only affects the gross cost displacement figure in Year 1.

System-Level Impact

Employment ESTIMATED — Nitaqat-labeled

Phase Modules Direct FTE Indirect FTE IKTVA proxy
Phase Initial 1 47 141 62% ESTIMATED
Phase Medium 3 141 423
Phase Expanded 6 282 846
Full Programme 10 470 1,410

Subject to Nitaqat compliance. In-Kingdom composition confirmed at Feasibility Study with HRSD. Riyadh national capital context: in-Kingdom FTE share likely above programme average.

Environmental Delta

Metric State A State B — Phase Initial State B — Full Programme
Diversion from landfill ~10% of addressable 35,000 tpy 350,000 tpy
Carbon avoidance 0 1,332,250 tCO₂e/yr ESTIMATED 1,332,250 tCO₂e/yr ESTIMATED
SGI contribution None 1,332,250 tCO₂e/yr toward 278M tCO₂e 1,332,250 tCO₂e/yr
MWAN contribution None 35,000 tpy toward 2035 350,000 tpy toward 2035

Structural (No-Fallback)

If ACM is not deployed, Saudi Arabia's national capital continues to process 21% of national waste streams through disposal. The MWAN 2035 mandate gap widens. No advanced carbon manufacturing (Carbon Fiber, Graphene Oxide) is produced domestically from Riyadh's waste streams. The Vision 2030 manufacturing diversification objective is not served at the capital city scale.

Risk & Sensitivity

# Risk Mitigation
1 FWDC lower than SAR 265/ton Net Year 2+ surplus is independent of FWDC — Revenue Share exceeds fee regardless
2 Surge season (Eid/Ramadan) feedstock volume exceeds Phase Initial capacity ACM designed for surge P90. Phase Medium and Expanded modules absorb surge volume. WARN-05 surge factor confirmation at Feasibility Study
3 ICO buyer LOI timing (SABIC, Aramco materials R&D) WARN-05 — Option A base case does not require ICO confirmation. A-IC is additive
4 Nitaqat tier compliance Feasibility Study with HRSD resolves WARN-03. Riyadh Nitaqat context favourable
5 MODON site timeline Early MODON Business Center engagement; parallel to CSA track
6 SAR/USD currency Pegged at 3.75 — minimal risk
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EXOGENESIS PROTOCOL · LEGACY LANDFILL REMEDIATION

Urban Mining — Near-Zero by Design

"The Exogenesis Protocol for Urban Mining — Carbotura's Near-Zero Emissions, Near-Zero Waste, Near-Zero Discharge approach to legacy landfill recovery. Operating under a sealed, advancing membrane enclosure with point-of-excavation gas capture via the Atmospheric Protection System (APS) and a fully electric, remotely operated excavation fleet. No personnel enter the enclosure under any operational condition."

  • $50 USD (SAR 187.50) / tonneExogenesis Royalty paid to the Authority on every legacy tonne processed through the ACM facility.
  • 40,000–81,000 m²Advancing membrane enclosure footprint per unit; advances across the mine face as excavation proceeds.
  • In development · design-basisConcept positioning per SA_14. Engineering target. Saudi Green Initiative restoration upon completion.
نُقدِّم هذه البوابة باللغة العربية الفصحى حرصاً منّا على التواصل الواضح مع شركائنا في المملكة العربية السعودية. نُدرك أن الترجمة من اللغة الإنجليزية قد لا تخلو من أخطاء أو سهو، ونطلب منكم كرم العفو والتسامح. يسعدنا استقبال أي ملاحظات أو تصحيحات تُعينونا على تحسين دقة المحتوى.