USA | PepsiCo has announced a new collaboration with agritech company TalusAg to advance fertiliser decarbonisation across global agricultural supply chains.
The initial agreements span PepsiCo’s global teams, representing approximately 30,000 metric tons of low-carbon ammonia, with an option to purchase an additional 41,000 metric tons. The broader collaboration also extends to the U.S. and the proposed Blue Earth, Minnesota project.
Fertiliser 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 will complement physical low-carbon fertiliser pilots with market-based mechanisms that can deliver near-term, auditable emissions reductions while preserving affordability for farmers.
Talus’ 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 fertiliser flow.
S3 Markets will provide the supporting Environmental Attribute Certificates (EAC) lifecycle management infrastructure for the issuance, tracking, and retirement of what the parties believe to be the world’s first tokenised ammonia fertiliser EACs from Talus’ Boone, Iowa project. This enables near-term action while physical low-carbon supply and logistics continue to develop.
In addition to reducing emissions, TalusAg’s distributed production model helps strengthen the resilience of fertiliser supply chains by enabling local, on-site ammonia generation 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 fertiliser 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 fertiliser decarbonisation globally.
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