Envision Energy Partners with PepsiCo APAC to Drive Low-Carbon Ammonia Initiatives
Envision Energy Partners with PepsiCo APAC for Sustainable Ammonia
On June 30, 2026, Envision Energy, a leading name in green technology, announced a groundbreaking agreement with PepsiCo APAC that focuses on low-carbon ammonia attributes. This partnership aims to tackle the environmental challenges associated with fertilizer production, marking a significant step forward in the efforts to decarbonize the agricultural industry.
As a part of this collaboration, Envision has completed the delivery of the first 1,000 tons of Carbon Attributes Certificates (CAA) for low-carbon ammonia produced at their Chifeng Net Zero Industrial Park. This facility is renowned for being the world’s largest green hydrogen project. The CAA are managed through the S3 Markets environmental attributes registry, which plays a crucial role in tracking the reduction of CO2 emissions.
According to preliminary estimates, the environmental attributes associated with these certificates could lead to an estimated carbon reduction of about 5,000 tons of CO2 equivalent. This agreement not only addresses the pressing issue of emissions associated with fertilizer production but also aligns with PepsiCo’s goals of reducing Scope 3 emissions across its supply chain.
The significance of ammonia in the production of fertilizers cannot be overstated. It serves as a key raw material in the manufacture of various products, including urea, ammonium nitrate, monoammonium phosphate, and diammonium phosphate. However, the traditional production processes are heavily reliant on fossil fuels, contributing significantly to carbon emissions within agricultural supply chains.
Transitioning from high-carbon to low-carbon ammonia is vital for decarbonizing both fertilizer producers and the brands that use them. This collaboration introduces an innovative Book and Claim model previously used in Sustainable Aviation Fuel (SAF) sectors to low-carbon ammonia energy attributes. This approach enables a separation of the physical product from its environmental attributes, allowing for a more streamlined integration of low-carbon ammonia into supply chains without the need for long-distance transportation.
As such, Envision intends to supply PepsiCo APAC with Accelerated Energy Certificates (EAC) associated with the low-carbon ammonia produced at their facility from 2026 to 2030. This endeavor is expected to further enhance PepsiCo's ability to mitigate Scope 3 emissions effectively.
Fred Li, Senior Vice President of Supply Chain at PepsiCo APAC and Greater China, acknowledged the complexities associated with fertilizer-related emissions, stating,