Executive Brief — Yanbu Industrial City

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.

Nine material streams. Three structural advantages unique to Yanbu. One action required by Q3 2026.

Opening

Yanbu Industrial City generates an estimated 400 TPD across nine material streams currently managed through disposal — MSW residuals, End-of-Life Tires, wastewater sludge, petcoke/coal ash, YANSAB polymer waste, contaminated recycling, Automotive Shredder Residue, commercial waste, and C&D fluff — at an estimated blended disposal cost of SAR 290/ton (ESTIMATED, WARN-01). Three structural advantages distinguish the Yanbu engagement from other KSA industrial corridor deployments.

First: The YANSAB polymer waste stream — 80 TPD of HDPE, LLDPE, and polypropylene rejects from Saudi Arabia's largest petrochemical complex — has no incumbent circular processor anywhere in the Kingdom. ACM produces Carbon Black, Graphite, and Carbon Fiber Precursor from this stream in a closed-loop arrangement where SABIC (YANSAB majority owner) is both the feedstock originator and the primary buyer of the processed output.

Second: YASREF (400,000 bpd) and SAMREF process the highest-vanadium crude in the Aramco system. Petcoke from these refineries produces the best-positioned domestic V₂O₅ feedstock in Saudi Arabia — 60 TPD, 3× the Jubail volume — feeding directly into Aramco's Vanadium Redox Flow Battery supply chain for the 110 GW renewable energy storage program. (WARN-08 — engineering confirmation required.)

Third: Yanbu Phase Initial is a 3-module, 300 TPD deployment — three times the Jubail scale — generating $165M in Carbotura FDI commitment to Yanbu Industrial City and 141 direct in-Kingdom jobs at COD.

Gap 1

MWAN Mandate — 3 Modules

Three ACM modules at RCJY Yanbu IC Phase II address the 85% diversion mandate for the largest industrial corridor on the Red Sea coast.

105,000 tpy MWAN contribution at full programme

Gap 2

YANSAB Polymer + V₂O₅ Gap

YANSAB polymer waste has no incumbent processor in the Kingdom. YASREF/SAMREF petcoke produces the best domestic V₂O₅ feedstock in Saudi Arabia. Both gaps are uniquely closable only at Yanbu.

80 TPD polymer — no incumbent · 60 TPD petcoke — best V₂O₅ nationally

Carbotura Phase Initial (300 TPD, Q4 2029 COD) closes all three gaps simultaneously. $165M Carbotura FDI into Yanbu Industrial City.

The Decision

THIS BRIEF MODELS OPTION A — STANDARD ELECTION

Options B (zero Processing Service Fee, different royalty mechanics) and Option A-IC (in-country premium participation on V₂O₅/carbon sales to Aramco and SABIC) are described in the Proposal. Option B+Exogenesis is not modelled for Yanbu Phase Initial.

The Circular Supply Agreement authorises Carbotura to operate an Advanced Circular Manufacturing centre at RCJY Yanbu Industrial City, processing Phase Initial feedstock from nine material streams across 3 modules. The CSA is structured as:

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

Independent Transactions

These are two independent transactions. They must not be combined, netted, or described as components of a single return.

Two Agreements — Two Independent Counterparties

SIRC CSA

Saudi Investment Recycling Company
100% PIF subsidiary
Feedstock supply terms · Processing Service · Manufactured Goods Revenue Share

RCJY Site Agreement

Royal Commission for Jubail and Yanbu
Independent entity — separate contract
Land lease · Industrial operating licence · Infrastructure access

RCJY and SIRC are separate entities. These are two independent agreements — the CSA counterparty (SIRC) is not the site authority (RCJY).

Yanbu-Unique Streams

YANSAB Polymer Waste — 80 TPD

HDPE · LLDPE · Polypropylene rejects. No incumbent circular processor in any KSA region. SABIC generates feedstock and buys output — closed-loop IKTVA alignment. This stream is unique to Yanbu.

YASREF/SAMREF Petcoke Ash — 60 TPD

400K bpd YASREF + SAMREF = highest-vanadium crude in Aramco system. V₂O₅ primary output. Saudi Arabia's best-positioned domestic V₂O₅ site nationally. WARN-08

Note: No WtE Ash at Yanbu Phase Initial

There is no WtE facility in the Yanbu Industrial City Phase Initial corridor. REE suite (Cerium, Lanthanum, Neodymium, Yttrium, Lithium Carbonate, Cobalt Sulfate) — which appears in the Jubail engagement — is absent from Yanbu Phase Initial. The critical minerals pathway at Yanbu is V₂O₅, Nickel, Gallium, and Molybdenum from petcoke ash.

Key Facts

Feedstock streams	MSW residuals · ELT · Wastewater sludge · Petcoke ash · YANSAB polymer · Contaminated recycling · ASR · Commercial · C&D fluff	Registry v3
Total addressable TPD	400 TPD baseline / 500 TPD surge (P90)	ESTIMATED
Surge factor / driver	1.25× / Refinery turnaround cycles	LOCKED
Phase Initial target	300 TPD · 105,000 tpy · 3 modules	LOCKED
Carbotura FDI	$165M (3 × $55M/module)	LOCKED
Capital obligation	Zero	LOCKED
CSA structure	Ijarah (Processing Service) + Musharakah (Revenue Share)	LOCKED
Revenue Share lag	13 months rolling — independent transaction	ALWAYS
T0 target	Q2 2027 · Dhul-Qa'dah 1448 AH	ESTIMATED
Phase Initial COD	Q4 2029 · Jumada II 1451 AH	ESTIMATED
First Revenue Share	Q1 2031 · Muharram 1453 AH	DERIVED
Direct FTE	141 Subject to Nitaqat compliance — ESTIMATED	ESTIMATED
Carbon avoidance	399,675 tCO₂e/yr · SGI contribution	ESTIMATED
MWAN contribution	105,000 tpy toward 2035 mandate	ESTIMATED
Unique stream	YANSAB polymer waste 80 TPD — no incumbent processor KSA	LOCKED
Critical minerals	V₂O₅ · Ni · Ga · Mo from petcoke ash	WARN-08
Primary V₂O₅ buyer	Saudi Aramco VRFB supply chain — CANDIDATE	CANDIDATE · WARN-08
Primary carbon buyer	SABIC (YANSAB loop) — CANDIDATE	CANDIDATE
CSA counterparty	Saudi Investment Recycling Company (SIRC) — 100% PIF subsidiary	LOCKED
Site counterparty	Royal Commission for Jubail and Yanbu (RCJY) — separate entity	LOCKED

What Delay Costs

Three-Module Scale — Delay Impact Multiplied

The CSA reserves Carbotura's manufacturing commitment to Yanbu. Once executed:

3 ACM modules built on Carbotura capital — Revenue Share stream locked across all three
T0 Q2 2027 → COD Q4 2029 → Revenue Share from Q1 2031
T0 slip of 12 months: COD Q4 2030 → First Revenue Share Q1 2032 · 12 months of Revenue Share forfeited across 3 modules · MWAN compliance window compressed by 12 months
YANSAB polymer stream is time-sensitive: No incumbent processor creates a first-mover window — a competing circular processor engaging YANSAB before this agreement is in place claims the 80 TPD stream
YASREF/SAMREF V₂O₅: Engineering confirmation (WARN-08) must begin now to enable Aramco procurement engagement within the Phase Initial timeline

Call to Action

Authorise the Authority Feasibility Study

The single action that preserves Q2 2027 T0. Authorization required by Q3 2026.

The Feasibility Study resolves:

GEMS actual gate rates at Yanbu (WARN-01) — confirm FWDC SAR 290/ton baseline
RCJY Yanbu IC Phase II land allocation — 45,000–75,000 m² for 3 modules
YANSAB polymer waste access agreement — confirm 80 TPD stream under SIRC/SABIC framework
YASREF/SAMREF petcoke ash vanadium analysis — engineering confirmation (WARN-08)
NCEC manufacturing facility classification for 3-module configuration
Nitaqat tier with HRSD for 141 direct FTE (WARN-03)
SABIC carbon outputs procurement engagement — fastest ICO track
Surge capacity infrastructure: 400 TPD baseline → 500 TPD surge (P90, refinery turnaround cycles)

Authorization required by Q3 2026 to preserve Q2 2027 T0.

Contact: info[at]carbotura.com

Source Basis

Registry-yanbu-v3.json · SIRC (sirc.sa) · PIF (pif.gov.sa) · RCJY (rcjy.gov.sa) · MWAN (mwan.gov.sa) · Saudi National Minerals Program 2025 · Future Minerals Forum January 2026 · YASREF Annual Operations Data · YANSAB Production Reports · Springer Nature Vanadium in Petcoke Ash 2026 · Exchange-rates.org SAR/USD 3.75 May 2026

Financial projections: Carbotura Circular Advantage modeling, RC3 baseline, standard contractual parameters. All financial figures ESTIMATED unless marked LOCKED. This document does not constitute a Sharia certification or a sukuk prospectus. Formal Sharia Board review recommended prior to CSA execution.