PepsiCo and TalusAg sign low-carbon ammonia deal to decarbonize fertilizer supply chains

PepsiCo has announced a landmark collaboration with agriculture technology company TalusAg, marking the food and beverage giant's first executed transaction involving low-carbon ammonia environmental attributes. The deal targets the decarbonization of fertilizer production, which accounts for roughly 2% of global CO₂ emissions. Under the agreement, TalusAg will supply verified environmental attributes tied to ammonia produced using renewable energy inputs, allowing PepsiCo to offset the carbon intensity of nitrogen fertilizer used across its agricultural supply chain. The program initially covers corn and potato sourcing in the US Midwest. Fertilizer production - specifically the Haber-Bosch process for synthesizing ammonia - is among the hardest-to-abate industrial emissions sources. TalusAg's approach pairs existing ammonia plants with modular carbon-capture units and green hydrogen injection, reducing per-ton emissions by up to 60% without requiring full plant replacement. For PepsiCo, the deal advances its pep+ sustainability agenda, which targets a 40% reduction in Scope 3 agricultural emissions by 2030. The company has committed $216M to regenerative agriculture programs since 2021 and views low-carbon fertilizer as the next frontier after soil health and water stewardship. Industry analysts note that the environmental attribute model - similar to renewable energy certificates in the power sector - could unlock broader adoption by decoupling the physical ammonia from its carbon-reduction value. If scaled, this mechanism could reshape how CPG companies account for agricultural input emissions.