#China #Shanghai #Envision Energy #Carbon Reduction #PepsiCo APAC

Envision Energy Partners with PepsiCo APAC

On July 30, 2026, Envision Energy, a global leader in green technologies, announced a landmark agreement with PepsiCo APAC aimed at reducing carbon emissions in the fertilizer industry. This partnership is set to provide PepsiCo with environmental attribute certificates (EACs) linked to low-carbon ammonia, a critical component in fertilizer production, facilitating their commitment to sustainability.

A New Era in Sustainable Fertilizer Production

The signing of this agreement represents a significant shift in reducing emissions associated with ammonia production. By sourcing low-carbon ammonia from Envision's Net Zero Industrial Park in Chifeng, which is recognized as the world’s largest green hydrogen project, PepsiCo aims to align its supply chain with its ambitious climate goals. Envision will supply 1,000 tons of EACs over the agreement period from 2026 to 2030. This initiative is expected to lead to an estimated reduction of approximately 5,000 tons of CO2 emissions equivalent.

Decarbonization Through Innovative Solutions

The innovative approach taken in this partnership is the application of the “Book and Claim” model, commonly used in sustainable aviation fuel (SAF) markets, to low-carbon ammonia credits. This model allows for the dissociation of the physical product from its environmental attributes. As a result, the environmentally friendly ammonia produced at the Chifeng facility can generate EACs that are traceable and claimable by PepsiCo, eliminating the need for long-distance physical transportation of the commodity.

The EACs will be managed via the S3 Markets environmental attribute registry, which oversees the issuance, tracking, assignment, and decommissioning of these attributes. Each certificate is linked to verified production documents, emissions reports, sales data, and retirements, ensuring a transparent and credible tracking system that strengthens overall sustainability claims.

Targeting Scope 3 Emissions

The agreement between Envision and PepsiCo is strategically focused on Scope 3 emissions reductions within the agricultural supply chain. Fertilizer-related emissions typically constitute a large portion of these Scope 3 emissions, making them one of the most challenging aspects to tackle. By leveraging low-carbon ammonia sourced from Envision, PepsiCo can effectively lower its emissions without altering its existing procurement or production processes.

Fred Li, Senior Vice President of Supply Chain at PepsiCo for the APAC and Greater China region, emphasized the importance of this collaboration. “This agreement facilitates our pursuit of emission reductions more effectively while maintaining our current operational methods,” he stated, underscoring the partnership's potential to drive significant market change.

Supporting PepsiCo's Sustainability Goals

This initiative is also aligned with PepsiCo’s broader sustainability strategy, known as PepsiCo Positive (pep+), aimed at achieving net-zero emissions by 2050. Ashley Brown, the Sustainability Director for PepsiCo in APAC and India, remarked, “This agreement accomplishes our ambition for greenhouse gas reduction in a practical manner and illustrates the vital role of collaborative partnerships in driving sustainable practices throughout our supply chain.”

Looking Ahead: The Future of Ammonia Production

Envision's senior leadership recognizes this agreement as a stepping stone toward revolutionizing low-carbon ammonia production. Frank Yu, Senior Vice President at Envision Energy, noted that “the fertilizer industry presents vast opportunities for decarbonization. The Book and Claim model efficiently connects environmental attributes with real decarbonization demand, paving the way for more flexible and effective solutions.”

Envision is committed to leveraging renewable resources through initiatives focusing on green electricity, hydrogen, and ammonia while assisting clients across various sectors in achieving their decarbonization targets.

Through collaborations like this one with PepsiCo, Envision is setting a precedent for future innovations that significantly contribute to global emissions reduction efforts. As the world pushes toward more sustainable agricultural practices, the integration of these green technologies is likely to redefine the landscape of fertilizer production and usage.