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PepsiCo signs fertilizer deal with Yara to cut food emissions

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By illuminem briefings

· 2 min read


illuminem summarizes for you the essential news of the day. Read the full piece on Bloomberg or enjoy below:

🗞️ Driving the news: PepsiCo signed a deal with Yara International to supply lower-emission fertilizers for its European farmers
• The initial focus is on potato crops, critical for Lay's potato chips
• The agreement includes transitioning to fertilizers made from renewable ammonia or carbon-capture technology by 2030

🔭 The context: Fertilizer production significantly contributes to emissions in food supply chains
• Traditional fertilizers use natural gas, while green ammonia, an emerging alternative, is produced with renewable energy
• Companies face increasing pressure to lower their environmental impact, particularly in staple crops like potatoes and wheat

🌍 Why it matters for the planet: This deal exemplifies the push towards sustainable agriculture, reducing the carbon footprint of major food products
• The adoption of renewable ammonia and precision farming techniques can substantially lower emissions associated with fertilizer use

⏭️ What's next: By 2030, PepsiCo aims to procure up to 165,000 tons of sustainable fertilizers annually from Yara
• Yara will supply these fertilizers from its renewable hydrogen plant in Norway and a carbon-capture facility in the Netherlands

💬 One quote: “Fertilizers represent one of the biggest opportunities for PepsiCo to reduce emissions, as they significantly impact the company’s average potato carbon footprint in Europe,” PepsiCo statement

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