Envision supplies low-carbon ammonia certificates to PepsiCo APAC
Envision Energy has delivered its first low-carbon ammonia environmental attribute certificates (EACs) to PepsiCo APAC under a new agreement aimed at reducing emissions linked to fertiliser production and agricultural supply chains.
The companies announced the completion of the first delivery of 1,000 tonnes of low-carbon ammonia EACs, with the certificates issued and managed through S3 Markets’ environmental attribute registry. Envision said the certificates could represent an estimated emissions reduction opportunity of around 5,000 tonnes of carbon dioxide equivalent (CO₂e).
The agreement is designed to support PepsiCo APAC’s Scope 3 emissions reduction efforts by connecting verified low-carbon ammonia production with downstream demand, allowing companies to address supply chain emissions before physical low-carbon ammonia markets become available at large scale.
Under the agreement, Envision will provide PepsiCo APAC with environmental attributes associated with low-carbon ammonia produced between 2026 and 2030 at its Chifeng Net Zero Industrial Park in China, which the company describes as the world’s largest green hydrogen project.
Ammonia is a critical input for the fertiliser industry and is used to produce products including urea, ammonium nitrate, monoammonium phosphate and diammonium phosphate. However, conventional ammonia production relies heavily on coal and natural gas, making it a major source of emissions across global agricultural and food supply chains.
The transition to low-carbon ammonia is considered an important step in reducing emissions from agriculture, where fertiliser use represents a significant share of Scope 3 emissions for food and consumer goods companies.
A key feature of the agreement is the use of a Book & Claim model, an approach increasingly applied in sectors such as sustainable aviation fuel. The system separates the physical delivery of the product from its environmental attributes, allowing low-carbon ammonia produced in Chifeng to generate traceable certificates that can be allocated to PepsiCo APAC without requiring physical transport of the ammonia over long distances.
S3 Markets’ registry will track the issuance, allocation and retirement of the certificates, creating a digital record of production data, emissions information and ownership transfers intended to support transparency and verification of environmental claims.
Saman Baghestani, Co-Founder and Chief Executive Officer of S3 Markets, said credible infrastructure for tracking environmental attributes would be essential for scaling commodity-linked certificate markets and ensuring confidence in low-carbon products.
PepsiCo APAC said the certificates are intended to support emissions reduction accounting within its agricultural supply chain, subject to applicable standards and internal verification processes. The company said the approach could reduce the need for costly physical transportation of low-carbon ammonia while enabling emissions reductions to be recognised across the value chain.
Fred Li, Supply Chain Senior Vice President at PepsiCo APAC and Greater China, said addressing fertiliser-related emissions was a major challenge because agricultural inputs are complex and fragmented across supply chains.
Ashley Brown, Chief Sustainability Officer of PepsiCo APAC and India, said the agreement supports the company’s PepsiCo Positive sustainability strategy and its ambition to achieve net zero emissions by 2050 or sooner.
Frank Yu, Senior Vice President of Envision Energy, said the collaboration demonstrated a new business model for green hydrogen and ammonia by allowing environmental attributes from low-carbon production to reach customers more efficiently.
The agreement highlights growing interest in market-based mechanisms that can accelerate the adoption of low-carbon industrial products, particularly in sectors such as fertilisers where replacing existing fossil-based production methods remains technically and economically challenging.
