Circular Offtake Proposal
Riyadh Industrial City — Phase Initial · Registry: registry-riyadh-v1
A 30-year Circular Supply Agreement converts nine Riyadh Industrial City material streams — anchored by 9,170 TPD baseline MSW/commercial volumes from Saudi Arabia's largest metro — into a Manufactured Goods Revenue Share returning to the Partner Authority from Year 2 onward, at zero Authority capital deployment. Programmatic commitment: 10 modules, 1,000 TPD, $550M Carbotura FDI.
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 eligibility subject to MODON landfill classification. Registry: lct_eligible_landfill — under review
- 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
- SABIC Riyadh (Carbon Black / Graphite feedstock) · Aramco Materials R&D (advanced carbon) · NEOM OXAGON (Carbon Fiber Precursor, Graphene Oxide)
- 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 National Capital Imperative
Riyadh generates an estimated 9,170 TPD of waste streams on an average day — rising to 12,840 TPD during Eid and Ramadan (1.4× surge). Saudi Arabia's capital city is home to 7.5 million residents, the fastest-growing commercial real estate sector in the Gulf, and the concentrated headquarters of every major Saudi institution including PIF, Aramco, SABIC, and Ma'aden.
Riyadh accounts for an estimated 21% of Saudi Arabia's national waste generation. The MODON industrial estate system hosts the Kingdom's highest concentration of commercial and industrial waste generators — every SIRC subsidiary stream originates within the MODON footprint, accessible under a single authority framework.
At 1,000 TPD and 10 modules, Riyadh is the largest single deployment in the Carbotura KSA programme — the national capital anchor that demonstrates the circular economy transition at scale. Carbotura's $550M FDI commitment to Riyadh is the programme's flagship investment.
MODON Authority Framework
The Saudi Authority for Industrial Cities and Technology Zones (MODON) administers Riyadh's industrial estates. MODON and SIRC (Saudi Investment Recycling Company) are separate legal entities — the CSA counterparty is SIRC (100% PIF subsidiary); the Manufacturing Site Deed counterparty is MODON. Two independent contracts. No conflation.
No other Saudi city concentrates feedstock access, institutional buyer proximity, and PIF investment infrastructure as tightly as Riyadh. The SIRC CSA counterparty (PIF-owned) and all three primary ICO buyer candidates (SABIC, Aramco, Ma'aden) maintain Riyadh HQ operations — off-take confirmation timelines are compressed by institutional proximity.
SIRC Subsidiary Portfolio Completion
Carbotura's engagement with SIRC at Riyadh is portfolio completion for the entire SIRC subsidiary network. 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
- SEEC collects commercial and municipal waste. Non-recyclable fraction = ACM feedstock
The partnership pitch: "We process what your network cannot." Carbotura converts every SIRC subsidiary's residual problem into RC3+ 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 high-purity carbon products and advanced materials, constitutes a tangible asset base for a sukuk issuance.
A Circular Sukuk backed by Carbotura's RevCon™ output — specifically the Carbon Fiber Precursor and Graphene Oxide streams sold to SABIC, Aramco, and NEOM OXAGON — would count toward SIRC's SAR 6 billion inward investment target while providing Sharia-compliant returns from real manufactured goods.
PIF capital city alignment: PIF owns SIRC (CSA counterparty). PIF holds strategic stakes in all primary ICO candidates. The Riyadh deployment positions the same sovereign principal as both manufacturing partner and primary buyer.
This document does not constitute a Sharia certification or sukuk prospectus. Formal Sharia Board review is recommended prior to CSA execution.
Deployment
Phase Roadmap — 10-Module Programme
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.
- MODON Manufacturing Site Deed (Saudi Authority for Industrial Cities and Technology Zones) — land lease, industrial operating license, infrastructure access. Independent contract — MODON is a separate entity from SIRC.
Direct FTE: 47 Phase Initial · 470 Full Programme (10 modules) (ESTIMATED — Subject to Nitaqat compliance; in-Kingdom composition confirmed at Feasibility Study with HRSD)
RevCon™ Output — Phase Initial (100 TPD)
100 TPD · 35,000 tpy · RC3 baseline · 350 operating days. Design-basis estimates. Not an offer. Full 10-module programme: 1,000 TPD · 350,000 tpy.
Carbon and Organics (from MSW / commercial / ELT / ASR / contaminated / C&D)
| Product | RevCon | Annual tpy (Phase Initial) 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 |
| Pozzolanic SCM | RC2 | 1,400 | $50–$120 |
Riyadh's primary ICO pathway is carbon and advanced materials — Carbon Black and Graphite to SABIC, Carbon Fiber Precursor and Graphene Oxide to NEOM OXAGON, Aromatics to Aramco materials programmes. No ash REE stream at Phase Initial — Riyadh's feedstock advantage is volume depth across carbon-bearing MSW and commercial streams. All ICO buyer status: CANDIDATE — no LOI at registry lock. WARN-05 applies.
CSA Terms
| CSA counterparty | Saudi Investment Recycling Company (SIRC) — PIF subsidiary LOCKED |
|---|---|
| Site agreement counterparty | Saudi Authority for Industrial Cities and Technology Zones (MODON) — separate entity LOCKED |
| CSA structure | Ijarah (Processing Service) + Musharakah (Revenue Share) |
| Phase Initial volume | 35,000 tpy (100 TPD × 350 days) LOCKED |
| Full programme volume | 350,000 tpy (1,000 TPD × 350 days · 10 modules) |
| T0 | Q4 2027 ESTIMATED |
| Phase Initial COD | Q2 2030 ESTIMATED |
| Revenue Share lag | 13 months rolling — independent transaction ALWAYS |
| First Revenue Share | ~Q3 2031 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 · $550M (SAR 2,062.50M) full programme (10 modules) LOCKED |
| PIF alignment | PIF owns SIRC (CSA counterparty). PIF holds stakes in SABIC, Aramco, Ma'aden — primary ICO buyer candidates |
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