PepsiCo and TalusAg Announce Low-carbon Ammonia Attribute Agreement to Help Accelerate Fertilizer Decarbonization

PURCHASE, N.Y., May 5, 2026 /PRNewswire/ -- PepsiCo (NASDAQ: PEP) today announced a new collaboration with agriculture technology company, TalusAg, that aims to advance fertilizer decarbonization across global agricultural supply chains through low-carbon ammonia environmental attributes, marking PepsiCo's first executed transactions of this kind.

The initial agreements span PepsiCo's Europe, Sub Saharan Africa, Asia Pacific, and global teams, representing approximately 30,000 metric tons of low-carbon ammonia, with an option to purchase an additional 41,000 metric tons. The broader collaboration also extends to the U.S. and the proposed Blue Earth, Minnesota project.

Fertilizer production is one of the most emissions intensive and hard to abate components of global food systems, with much of the impact occurring upstream of direct supplier relationships. Through this collaboration, PepsiCo is complementing physical low carbon fertilizer pilots with market-based mechanisms that can deliver near term, auditable emissions reductions while preserving affordability for farmers.

"Decarbonizing fertilizer is important to advancing climate progress at scale, but it should be done in a way that works for farmers," said Margaret Henry, PepsiCo Vice President of Sustainable and Regenerative Agriculture said. "This agreement helps create a strong demand signal for low emissions ammonia while supporting both more stable input economics for growers and the long-term transition of the fertilizer market."

Talus' approach enables companies to purchase verified low-emissions ammonia environmental attributes through a book-and-claim model, where the environmental attribute is tracked separately from the physical fertilizer flow.

"This global collaboration is a prime example of how credible market-based mechanisms can help build supply chain reliability, lower fertilizer costs for local farmers and and accelerate investment in low emissions fertilizer production," Hiro Iwanaga CEO, TalusAg said. "With PepsiCo's leadership, we will work together to help derisk new capacity while supporting more resilient and sustainable food systems."

S3 Markets will provide the supporting Environmental Attribute Certificates (EAC) lifecycle management infrastructure for the issuance, tracking, and retirement of what the parties believe to be the world's first tokenized ammonia fertilizer EACs from Talus' Boone, Iowa project. This enables near-term action while physical low-carbon supply and logistics continue to develop.

"This collaboration helps demonstrate how trusted market infrastructure can support credible book-and-claim systems for low-carbon commodities," said Saman Baghestani, CEO of S3 Markets. "By enabling secure and auditable EAC lifecycle management, we can help innovative producers like TalusAg and forward-looking buyers like PepsiCo to participate with confidence as these markets develop."

In addition to reducing emissions, TalusAg's distributed production model helps strengthen the resilience of fertilizer supply chains by enabling local, on-site generation of ammonia closer to where it is used. By reducing reliance on long, centralized global supply chains that can be highly exposed, this approach helps mitigate geopolitical, logistics, and price volatility risks while improving access to reliable fertilizer supply in both developed and emerging markets. Localized production also lowers transportation emissions and costs, supporting more stable input economics for growers while enhancing food system resilience over the long term.

The collaboration also reflects continued joint advocacy for credible, low-cost environmental attribute markets to help accelerate fertilizer decarbonization globally.

"By supporting initiatives like Talus, PepsiCo aims to advance lower-carbon, locally produced fertilizer solutions that can help strengthen supply chain resilience and deliver climate benefits for agriculture," said Henry.

About PepsiCo
PepsiCo products are enjoyed by consumers more than one billion times a day in more than 200 countries and territories around the world. PepsiCo generated nearly $94 billion in net revenue in 2025, driven by a complementary beverage and convenient foods portfolio that includes Lay's, Doritos, Cheetos, Gatorade, Pepsi-Cola, Mountain Dew, Quaker, and SodaStream. PepsiCo's product portfolio includes a wide range of enjoyable foods and drinks, including many iconic brands that generate more than $1 billion each in estimated annual retail sales.

Guiding PepsiCo is our vision to Be the Global Leader in Beverages and Convenient Foods by Winning with pep+ (PepsiCo Positive). pep+ is our strategic end-to-end transformation that places sustainability at the center of our business strategy, seeking to drive growth and build a stronger, more resilient future for PepsiCo and the communities where we operate. For more information, visit www.pepsico.com, and follow on X (Twitter), Instagram, Facebook, and LinkedIn @PepsiCo.

About TalusAg
Founded in 2021, TalusAg is an agriculture technology and energy infrastructure company that develops a distributed network of green ammonia systems to locally produce this critical raw material in a more cost-competitive and reliable way across the globe. The company has pioneered the first commercial, modular, green ammonia system in North America and currently has production systems in the U.S., Kenya and Spain. For more information, please visit www.talusag.com.

About S3 Markets
S3 Markets builds market infrastructure for Environmental Attribute Certificates tied to low-carbon commodities. Its EAC lifecycle management system helps producers scale and enables buyers to address Scope 3 decarbonization opportunities across commodities such as ammonia, steel, cement, copper, and other industrial materials. For more information visit www.s3markets.com/.

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SOURCE PepsiCo, Inc.