New ammonia deals aim to lower farm input emissions globally
PepsiCo has announced a new global collaboration with agricultural technology company TalusAg to support fertilizer decarbonization across its farming supply chains. This partnership focuses on reducing emissions linked to fertilizer production, one of the most carbon‑intensive parts of food systems.
Under the initial agreements, PepsiCo plans to support about 30,000 metric tons of low carbon ammonia across Europe, Sub‑Saharan Africa, Asia Pacific, and global operations. There is also an option to expand the program with an additional 41,000 metric tons in the future.
The broader collaboration includes activities in the United States and a proposed project in Blue Earth, Minnesota.
"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 of ammonia while supporting both more stable input economics for growers and the long-term transition of the fertilizer market," said Henry.
Traditional fertilizer production creates high emissions, much of which occur before fertilizers even reach farmers. PepsiCo’s new approach combines pilot projects with market‑based tools that allow emissions reductions to be tracked and verified without changing how fertilizer is physically delivered. This helps create quick climate benefits while keeping fertilizer costs stable for growers.
"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."
TalusAg uses a book‑and‑claim system that separates the environmental value of low‑emissions ammonia from the physical product. This allows companies to support cleaner production while farmers continue to use fertilizer as usual.
"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."
The initiative is supported by a digital system that tracks and manages environmental attribute certificates. These certificates help ensure transparency, credibility, and accountability in emissions reductions.
TalusAg also uses a localized production model, producing ammonia closer to where it is needed. This reduces transportation costs, lowers emissions, and improves fertilizer access. Local production also strengthens supply chains by reducing risks linked to global disruptions.
Overall, the collaboration highlights a growing effort within agriculture to reduce emissions, support farmers, and build a more resilient and sustainable food system.
Photo Credit: pepsico-talusAg