PepsiCo scales global decarbonization efforts with low-carbon fertilizer partnerships
The collaboration also supports PepsiCo‘s broader ambition to implement regenerative, restorative, or protective practices across 10 million acres globally by 2030, and to reduce Scope 3 forest, land, and agriculture greenhouse gas emissions by 30% against a 2022 baseline by 2030.
SPAIN/EUROPE/USA – In a major push toward its “pep+” sustainability goals, PepsiCo has announced two landmark collaborations aimed at decarbonizing the most emissions-intensive segment of its food production: fertilizer.
PepsiCo has moved to accelerate the decarbonization of its agricultural supply chain through two distinct but complementary agreements; one with agriculture technology firm TalusAg covering global fertilizer markets, and another with Spanish fertilizer giant Fertiberia targeting European farmland at scale.
PepsiCo announced a new collaboration with agriculture technology company TalusAg, aimed at advancing fertilizer decarbonization across global agricultural supply chains through low-carbon ammonia environmental attributes, marking PepsiCo’s first executed transactions of this kind.
The initial agreements span PepsiCo’s Europe, Sub-Saharan Africa, Asia Pacific, and global teams, representing approximately 30,000 metric tons of low-carbon ammonia, with an option to purchase an additional 41,000 metric tons.
TalusAg’s model uses a book-and-claim system that allows companies to purchase verified low-emissions ammonia environmental attributes separately from the physical fertilizer supply, an approach intended to accelerate adoption while low-carbon ammonia production, storage, and logistics infrastructure continue to develop.
The agreement also includes the use of tokenized Environmental Attribute Certificates linked to TalusAg’s project in Boone, Iowa, with S3 Markets providing the infrastructure for issuing, tracking, and retiring the certificates.
TalusAg CEO Hiro Iwanaga described the partnership as 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.
On the European front, PepsiCo and Fertiberia announced a long-term collaboration to scale the use of high-tech, green hydrogen-based fertilizer in Europe, with Fertiberia set to supply its Impact Zero product across approximately 400,000 acres (~162,000 hectares) of farmland used to grow ingredients for popular brands including Lay’s, Doritos, Cheetos, and Ruffles.
The program will initially launch in France, Romania, Serbia, Greece, and Turkey, while also expanding the existing footprint in Spain and Portugal, with plans to reach additional European countries in the near future.
Fertiberia’s low-carbon fertilizer is produced using green hydrogen instead of natural gas, which reduces greenhouse gas emissions by up to 63%.
A previous pilot in Spain and Portugal demonstrated up to 15% reductions in emissions for potato farming and 20% for corn farming.
When combined with PepsiCo’s existing supplier agreements, the Fertiberia collaboration is expected to bring the share of low-carbon fertilizer used in PepsiCo’s European supply chain to around 50% by 2030.
The collaboration also supports PepsiCo’s broader ambition to implement regenerative, restorative, or protective practices across 10 million acres globally by 2030, and to reduce Scope 3 forest, land, and agriculture greenhouse gas emissions by 30% against a 2022 baseline by 2030.
By integrating green hydrogen technology with innovative digital certificates, the company aims to derisk the transition for farmers while ensuring the long-term resilience and sustainability of the global food supply chain.
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