Circular Offtake Proposal
Yanbu Industrial City — Phase Initial · Registry: registry-yanbu-v1
A 30-year Circular Supply Agreement converts nine Yanbu Industrial City material streams — including 80 TPD of polymer production waste from YANSAB and 60 TPD of high-vanadium petcoke ash from YASREF/SAMREF — into a Manufactured Goods Revenue Share returning to the Partner Authority from Year 2 onward, at zero Authority capital deployment. Phase Initial: 3 modules, 300 TPD, $165M 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 share of manufactured goods revenue — commences 13 months after corresponding Processing Service payment, rolling monthly
- Capital obligation
- Zero — Carbotura designs, finances, builds, owns, operates
- Year 2+ position
- Revenue Share exceeds Processing Service — net surplus per ton, on 3-module volume
Option B — Sovereign Resource Royalty
- Processing Service Fee
- Zero
- Structure
- Different royalty mechanics — described in formal Proposal document
- Capital obligation
- Zero
Option A-IC — In-Country Revenue Participation Saudi-exclusive
- Base structure
- Option A plus in-country premium on V₂O₅, polymer-derived outputs, and carbon materials sold to Saudi institutional buyers
- Target buyers
- Saudi Aramco VRFB chain · SABIC · Ma'aden · NEOM OXAGON
- In-country premium
- +15% over export reference — ESTIMATED WARN-04
- Activation
- Requires ICO anchor buyer LOI WARN-04
- Capital obligation
- Zero
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
Yanbu Industrial City is the western anchor of Saudi Arabia's industrial infrastructure — hosting YASREF (one of the world's largest heavy crude refineries), YANSAB (one of the Kingdom's largest petrochemical complexes), and SAMREF. The concentration of refinery and petrochemical output at Yanbu creates two high-value ACM feedstock streams absent from all other KSA regions:
- High-vanadium petcoke ash from YASREF 400K bpd Arab Heavy crude processing — the largest single-site V₂O₅ feedstock volume in the national ACM network
- Polymer production waste from YANSAB 4M tpy complex — HDPE, LLDPE, PP rejects and off-spec outputs with no incumbent circular processor
Carbotura ACM at Yanbu closes the MWAN mandate gap for the western industrial corridor while producing V₂O₅ for Saudi Arabia's 110 GW renewable energy storage program and advanced carbon materials for SABIC and NEOM OXAGON off-take.
The YANSAB-SABIC Circular Loop
YANSAB (SABIC 51%) generates polymer production waste → ACM converts to RC3/RC4 carbon materials and aromatics → SABIC procures for downstream applications. The same corporate entity that generates the feedstock waste (SABIC via YANSAB) is the natural off-take buyer for the manufactured outputs. This closed-loop alignment is exclusive to Yanbu.
SIRC subsidiary note: GEMS Yanbu operates the industrial waste management function within RCJY territory. As with Jubail, the CSA counterparty is SIRC (Saudi Investment Recycling Company, PIF subsidiary) — not GEMS directly. GEMS Yanbu is the operating entity.
Deployment
BOO Structure & Dual-Counterparty Rule
- SIRC CSA (Saudi Investment Recycling Company) — feedstock supply terms, Processing Service, Manufactured Goods Revenue Share. SIRC is a 100% PIF subsidiary.
- RCJY Manufacturing Site Deed (Royal Commission for Jubail and Yanbu) — land lease, industrial operating license, infrastructure access. Independent contract — RCJY is a separate entity from SIRC.
Direct FTE: 141 Phase Initial (47 per 100 TPD module × 3) (ESTIMATED — Subject to Nitaqat compliance; confirmed at Feasibility Study with HRSD — WARN-03)
RevCon™ Output — Phase Initial
300 TPD · 105,000 tpy · RC3 baseline · 350 operating days. Design-basis estimates. Not an offer.
Carbon and Organics (from all streams including polymer waste)
| Product | RevCon | Annual tpy ESTIMATED | Export Ref. $/ton |
|---|---|---|---|
| Carbon Black CRB-007 | RC2–RC3 | ~6,500 | $800–$1,500 |
| High-Purity Graphite CRB-008 | RC3 | ~3,200 | $6,000–$10,000 |
| Carbon Fiber Precursor CRB-009 | RC4 | ~2,600 | $15,000–$22,000 |
| Graphene Oxide CRB-010 | RC4 | ~525 | $60,000–$100,000 |
| Aromatics (BTX) ARM-003–005 | RC3 | ~10,700 | $900–$2,000 |
| Mineral Aggregate MIN-001 | RC1 | ~12,500 | $30–$80 |
Critical Minerals (from petcoke ash — no WtE ash at Phase Initial)
| Product | RevCon | Stream | Export Ref. |
|---|---|---|---|
| Vanadium Pentoxide V₂O₅ | Outside RevCon Ref. | YASREF/SAMREF petcoke ash | $8–12/kg |
| Nickel | RC2–RC3 | Petcoke ash | $12–18/kg |
| Gallium metal | RC4 MTL-042 | Petcoke/coal ash | $220–350/kg |
| Molybdenum | RC3 | Refinery catalyst ash | $25–40/kg |
Note: No WtE ash stream at Yanbu Phase Initial — REE suite (Ce, La, Nd, Y, Li, Co) absent from Phase Initial scope. V₂O₅ from YASREF petcoke ash is the primary critical mineral product.
CSA Terms
| CSA counterparty | Saudi Investment Recycling Company (SIRC) — PIF subsidiary LOCKED |
|---|---|
| Site agreement counterparty | Royal Commission for Jubail and Yanbu (RCJY) — separate entity LOCKED |
| Operating entity | GEMS Yanbu (SIRC industrial division) — operational |
| Phase Initial volume | 105,000 tpy (300 TPD × 350 days) — 3 modules LOCKED |
| T0 | Q2 2027 ESTIMATED |
| Phase Initial COD | Q4 2029 ESTIMATED |
| Revenue Share lag | 13 months rolling — independent transaction ALWAYS |
| 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 | $165M (SAR 618.75M) · 3 modules · 300 TPD LOCKED |
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