By Jamie Martin
PepsiCo has launched a new collaboration with agricultural technology company TalusAg to help address emissions linked to fertilizer use across global farming systems. The initiative focuses on reducing the carbon footprint of ammonia, a key ingredient in most fertilizers.
The initial phase of the agreement supports around 30,000 metric tons of low carbon ammonia through PepsiCo’s operations in Europe, Sub‑Saharan Africa, Asia Pacific, and global teams. The agreement also includes an option to expand by another 41,000 metric tons. Plans extend to activities in the United States and a proposed ammonia project in Minnesota.
Fertilizer production is known to be energy‑intensive and difficult to decarbonize. Many emissions occur far upstream, beyond direct farm suppliers. PepsiCo’s approach blends physical fertilizer trials with market‑based systems that allow emissions benefits to be measured and audited without disrupting farm operations.
"Decarbonizing 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," said Henry.
Through TalusAg’s book‑and‑claim system, the environmental attributes of low‑emissions ammonia are tracked separately from the physical fertilizer. This method helps companies support cleaner fertilizer production while growers maintain reliable access to affordable inputs.
"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 and accelerate investment in low emissions fertilizer production," said Hiro Iwanaga CEO, TalusAg. "With PepsiCo's leadership, we will work together to help derisk new capacity while supporting more resilient and sustainable food systems."
A digital certificate system ensures that emissions reductions are recorded, tracked, and retired in a secure and transparent way. This allows agricultural and food companies to take early action while low‑carbon fertilizer supply continues 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 lifecycle management, we can help innovative producers like TalusAg and forward-looking buyers like PepsiCo to participate with confidence as these markets develop."
TalusAg’s distributed production model supports fertilizer manufacturing closer to farms. Local production reduces transportation emissions, improves reliability, and helps protect farmers from price and supply fluctuations.
This collaboration reflects a broader industry effort to promote practical and affordable solutions that lower emissions, strengthen fertilizer supply chains, and support sustainable agriculture worldwide.
Photo Credit: pepsico-talusAg
Categories: National