COMUNICATO STAMPA – CONTENUTO PROMOZIONALE
SHANGHAI, July 31, 2026 /PRNewswire/ — On July 30th 2026, Envision Energy, a global leader in green technology, announced a low carbon ammonia environmental attribute purchase agreement with PepsiCo APAC and completed delivery of the first 1,000 tonnes of low carbon ammonia environmental attribute certificates (EACs). The EACs are being issued and managed through S3 Markets’ environmental attribute registry. Based on the preliminary estimates, the attributes associated with these certificates could correspond to an estimated emissions reduction opportunity of approximately 5,000 tonnes CO2 equivalent.
The transaction is intended to support emerging efforts to reduce emissions associated with fertilizer production by connecting verified low-carbon ammonia production with downstream demand, to support Scope 3 emissions reduction efforts, even before physical low carbon ammonia supply chains are available at scale.
Under the agreement, from 2026 to 2030, Envision will supply PepsiCo APAC with EACs associated with low carbon ammonia produced at its Chifeng Net Zero Industrial Park-the largest green hydrogen project in the world. The agreement is intended to support PepsiCo APAC’s Scope 3 emissions reduction efforts across its supply chain and provide an innovative pathway to decarbonize fertilizer use in its agricultural value chain.
Ammonia is a key feedstock in fertilizer production and is widely used to manufacture products including urea, ammonium nitrate, monoammonium phosphate, and diammonium phosphate. Today, most ammonia used by the fertilizer industry is produced through conventional coal- and natural gas-based processes, both of which are highly carbon-intensive. As a result, ammonia is a significant source of emissions across agricultural supply chains and the broader food and consumer goods value chain. Transitioning ammonia from a high-carbon to a low-carbon feedstock is therefore a critical lever for decarbonization for both fertilizer producers and downstream brands.
A key innovation of the agreement is the application of the Book & Claim model, already used in sectors such as sustainable aviation fuel (SAF), to low-carbon ammonia EACs. Under this approach, the physical product is decoupled from its environmental attributes, allowing low-carbon ammonia produced in Chifeng to generate traceable EACs that may be allocated to PepsiCo APAC without the need to physically transport the product over long distances. The EACs are being issued and managed through S3 Markets’ environmental attribute registry, which supports the issuance, tracking, allocation, and retirement of low-carbon ammonia environmental attributes. By linking each certificate to relevant production, emissions, sales, and retirement documentation, the system is designed to create an auditable chain of custody, strengthen claim integrity, and support credible downstream claims.
“Commodity-linked EAC markets will only scale if the infrastructure is as credible as the underlying low-carbon production,” said Saman Baghestani, Co-Founder and CEO of S3 Markets. “This transaction is a leading example of that approach, combining verified production, clear attribute ownership, and auditable registry records to support credible downstream claims.”
For PepsiCo APAC the EACs are intended to support Scope 3 emissions reduction accounting, subject to evolving guidance and claims requirements in applicable standards and internal controls within its agricultural supply chain. Compared with relying solely on the cross-regional transport of physical low carbon ammonia, this approach may reduce both logistics-related costs and associated emissions, while enabling environmental attributes to flow more efficiently across the fertilizer, farming, food processing, and consumer brand value chain.
“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,” said Fred Li, Supply Chain Senior Vice President, PepsiCo APAC & Greater China. “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.”
“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[1] 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”, said Ashley Brown, Chief Sustainability Officer of PepsiCo APAC & India.
“Our collaboration with PepsiCo APAC marks a significant step forward in Envision’s green hydrogen and ammonia business model innovation,” said Frank Yu, Senior Vice President of Envision Energy. “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.”
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