PepsiCo moves to accelerate fertilizer decarbonisation

The initial agreements span PepsiCo's Europe, Sub Saharan Africa, Asia Pacific, and global teams, representing approximately 30 000 t of low-carbon ammonia, with an option to purchase an additional 41 000 t. The broader collaboration also extends to the US and the proposed Blue Earth, Minnesota project.

Fertilizer production is one of the most emissions intensive and hard to abate components of global food systems, with much of the impact occurring upstream of direct supplier relationships. Through this collaboration, PepsiCo is complementing physical low carbon fertilizer pilots with market-based mechanisms that can deliver near term, auditable emissions reductions while preserving affordability for farmers.

"Decarbonising fertilizer is important to advancing climate progress at scale, but it should be done in a way that works for farmers," said Margaret Henry, PepsiCo Vice President of Sustainable and Regenerative Agriculture said. "This agreement helps create a strong demand signal for low emissions ammonia while supporting both more stable input economics for growers and the long-term transition of the fertilizer market."

TalusAg's approach enables companies to purchase verified low-emissions ammonia environmental attributes through a book-and-claim model, where the environmental attribute is tracked separately from the physical fertilizer flow.

"This global collaboration is a prime example of how credible market-based mechanisms can help build supply chain reliability, lower fertilizer costs for local farmers, and accelerate investment in low emissions fertilizer production," said Hiro Iwanaga CEO of TalusAg. "With PepsiCo's leadership, we will work together to help derisk new capacity while supporting more resilient and sustainable food systems."

S3 Markets will provide the supporting Environmental Attribute Certificates (EAC) life-cycle management infrastructure for the issuance, tracking, and retirement of what the parties believe to be the world's first tokenised ammonia fertilizer EACs from Talus' Boone, Iowa project. This enables near-term action while physical low-carbon supply and logistics continue to develop.

"This collaboration helps demonstrate how trusted market infrastructure can support credible book-and-claim systems for low-carbon commodities," said Saman Baghestani, CEO of S3 Markets. "By enabling secure and auditable EAC life-cycle management, we can help innovative producers like TalusAg and forward-looking buyers like PepsiCo to participate with confidence as these markets develop."

In addition to reducing emissions, TalusAg's distributed production model helps strengthen the resilience of fertilizer supply chains by enabling local, on-site generation of ammonia closer to where it is used. By reducing reliance on long, centralised global supply chains that can be highly exposed, this approach helps mitigate geopolitical, logistics, and price volatility risks while improving access to reliable fertilizer supply in both developed and emerging markets. Localised production also lowers transportation emissions and costs, supporting more stable input economics for growers while enhancing food system resilience over the long term.

The collaboration also reflects continued joint advocacy for credible, low-cost environmental attribute markets to help accelerate fertilizer decarbonisation globally.

"By supporting initiatives like Talus, PepsiCo aims to advance lower-carbon, locally produced fertilizer solutions that can help strengthen supply chain resilience and deliver climate benefits for agriculture," said Henry.

Read the article online at: https://www.worldfertilizer.com/environment/06052026/pepsico-moves-to-accelerate-fertilizer-decarbonisation/