Global green technology leader Envision Energy entered into a low-carbon ammonia environmental attribute purchase agreement with PepsiCo APAC and delivered the initial 1,000 tonnes of low-carbon ammonia environmental attribute certificates – EACs on 30 July, 2026.
Apparently, the environmental attribute certificates are issued and managed using the S3 Markets environmental attribute registry. With these initial projections, the characteristics associated with these certificates may relate to an anticipated reduction in emissions probability of roughly 5,000 tonnes of CO2 equivalent.
The deal is meant to support upcoming efforts to minimise emissions from fertilizer production by linking confirmed low-carbon ammonia production to downstream demand so as to assist Scope 3 emissions reduction measures even before physical low-carbon ammonia supply chains are accessible at scale.
According to the agreement, PepsiCo APAC will be awarded EACs related to a low-carbon ammonia produced at the Chifeng Net Zero Industrial Park of Envision from 2026 to 2030, which is the world’s largest green hydrogen project. The agreement is designed to help PepsiCo APAC lower its Scope 3 emissions throughout its supply chain and offer innovative means of decarbonizing fertiliser use within its agricultural value chain.
It is well to be noted that ammonia is an important raw material for fertilizer production and is commonly used in the production of products like urea, ammonium nitrate, monoammonium phosphate as well as diammonium phosphate. Nowadays, the fertilizer industry uses mostly traditional coal- and natural-gas-based methods to produce the vast majority of the ammonia, with both being very carbon intensive. This means that ammonia is a large emitter in agricultural supply chains along with the broader food and consumer goods value chain. Therefore, shifting ammonia from high-carbon to low-carbon feedstock is a crucial decarbonization mechanism for both fertilizer producers as well as downstream brands.
The primary breakthrough of the deal is to utilise the Book & Claim model for low-carbon ammonia EACs, which is a model already employed in sectors like sustainable aviation fuel – SAF. This approach decouples the physical product from its associated environmental characteristics, thereby enabling low-carbon ammonia generated in Chifeng to produce traceable EACs that can be assigned to PepsiCo APAC with no need to physically transport the product across long distances. The EACs are being granted and controlled through the environmental attribute registry of S3 Markets, which facilitates the issuance, tracking, allocation as well as retirement of low-carbon ammonia environmental characteristics. This system is intended to create an auditable chain of custody by connecting each certificate to appropriate production, emissions, sales and retirement documentation, strengthening claim integrity and supporting reliable downstream claims. Commodity-linked EAC markets will only grow if the infrastructure is as trustworthy as the fundamental low-carbon production, says the co-founder and CEO of S3 Markets, Saman Baghestani. He further adds that “This transaction is a leading example of that approach, combining verified production, clear attribute ownership, and auditable registry records to support credible downstream claims.”
Notably, the EACs are developed in order to support Scope 3 emissions reduction accounting for PepsiCo APAC, subject to changing guidance and claims specifications in relevant standards and internal safeguards within its agricultural supply chain. This method could reduce both associated costs and emissions along the logistics chain in comparison to using only the cross-regional movement of physical low carbon ammonia, whilst allowing environmental attributes to circulate more effectively across the fertilizer, food processing, farming, and consumer brand value chain.
According to Supply Chain Senior Vice President, PepsiCo APAC & Greater China, Fred Li, “Emissions associated with fertilizer are often a significant component of Scope 3 emissions in the food and agriculture value chain, yet they are also among the most difficult and fragmented to address. This agreement with Envision is intended to support our efforts to address emissions associated with upstream agricultural inputs more efficiently, without changing our existing procurement or production arrangements.”
Opines Chief Sustainability Officer, PepsiCo APAC & India, Ashley Brown, “This is another important example of PepsiCo Positive (pep+) in action. The agreement supports our ambition to achieve net-zero emissions by 2050 or sooner and provides an innovative way to support our efforts to address emissions associated with key agricultural supply chain hotspots. We look forward to working with third parties such as Envision to help drive sustainability across the value chain—from field to shelf.”
Says Senior Vice President, Envision Energy, Frank Yu, “Our collaboration with PepsiCo APAC marks a significant step forward in Envision’s green hydrogen and ammonia business model innovation. The fertilizer industry consumes significant volumes of ammonia and represents substantial decarbonization potential. The value of the Book & Claim model for green ammonia EACs is that it allows environmental attributes to be matched with genuine decarbonization demand more efficiently and flexibly, without requiring the physical product to be transported over long distances. Envision will continue to unlock the value of wind and solar resources through pathways including green electricity, green hydrogen, green ammonia, and EACs, helping customers across multiple industry sectors achieve decarbonization more cost-effectively.”