PepsiCo adds fourth low-carbon route

The agreement adds an Asian leg to PepsiCo’s low-carbon fertilizer sourcing programme. As we reported in May, the food group has already built out three routes in other regions: certified low-carbon UAN from CF Industries’ Donaldsonville plant for potato growers supplying its Frito-Lay business in the US; a book-and-claim deal with US ag-tech firm TalusAg covering about 30,000 tonnes of green ammonia with an option on a further 41,000 tonnes across Europe, Sub-Saharan Africa, Asia-Pacific and its global procurement teams; and a long-term partnership with Spain’s Fertiberia to supply up to 150,000 t/y of green hydrogen-based fertilizer by 2030 across roughly 162,000 hectares in Europe. PepsiCo has said it expects low-carbon sources to account for about 50% of the fertilizer used in its European supply chain by 2030.

Shanghai-headquartered Envision is a green-technology group active in wind turbines, batteries, energy management software and, more recently, green hydrogen and ammonia. Its Chifeng plant, commissioned in 2025 and powered by off-grid wind and solar, is currently producing 320,000 t/y of green ammonia and is targeted to reach 1.5 million t/y by 2028. Under the new agreement, Envision will supply PepsiCo APAC with EACs from 2026 to 2030, issued and managed through S3 Markets’ environmental attribute registry, which tracks issuance, allocation and retirement of the certificates. The transaction applies the Book & Claim model — already used for sustainable aviation fuel and, in fertilizer, in the TalusAg deal — to low-carbon ammonia, decoupling the physical product from its environmental attributes so that ammonia produced in Chifeng can generate traceable EACs allocated to PepsiCo APAC without long-distance transport of the physical product.

“Emissions associated with fertilizer are often a significant component of Scope 3 emissions in the food and agriculture value chain, yet they are also among the most difficult and fragmented to address,” said Fred Li, Supply Chain Senior Vice President, PepsiCo APAC & Greater China. “This agreement with Envision is intended to support our efforts to address emissions associated with upstream agricultural inputs more efficiently, without changing our existing procurement or production arrangements.”

Frank Yu, Senior Vice President of Envision Energy, said the deal marked a step forward in the group’s green hydrogen and ammonia business model. “The fertilizer industry consumes significant volumes of ammonia and represents substantial decarbonization potential. The value of the Book & Claim model for green ammonia EACs is that it allows environmental attributes to be matched with genuine decarbonization demand more efficiently and flexibly, without requiring the physical product to be transported over long distances.”