PepsiCo has signed a multi-year agreement with Fertiberia to increase the use of green hydrogen-based fertilisers throughout its European agricultural supply chain. This move supports the company's goals to cut emissions linked to farming.

The partnership will focus on using low-carbon fertilisers in major crop-growing areas in Europe. It targets key ingredients for products like Lay’s, Doritos, Ruffles, and Cheetos. This initiative shows the industry's growing interest in green hydrogen fertiliser, regenerative agriculture, reducing agricultural emissions, low-carbon farming, and sustainable food supply chains as companies aim for climate targets.

Fertilisers Identified as Major Emissions Source

PepsiCo noted that fertiliser production and use make up about half of the typical potato carbon footprint in Europe. This means that addressing fertilisers presents one of the company's biggest chances to reduce emissions in agriculture. Globally, fertilisers contribute nearly 2% of greenhouse gas emissions, according to industry data.

The company stated that the new partnership aligns with its wider sustainability goals. These include a target to implement regenerative, restorative, or protective agricultural practices on 10 million acres worldwide by 2030. PepsiCo also aims to cut Scope 3 emissions from forests, land, and agriculture by 30% by 2030, compared to a 2022 baseline.

Archana Jagannathan, Chief Sustainability Officer for PepsiCo Europe, the Middle East, and Africa, said that low-carbon fertilisers are a powerful tool for reducing agricultural emissions. She also pointed out that digital technologies can help transform food systems by improving farm management and sustainability practices.

Fertiberia to Supply Up to 150,000 Tons Annually

Under the agreement, Spain-based Fertiberia will supply PepsiCo with up to 150,000 tons of its Impact Zero crop nutrition solutions each year by 2030. These fertilisers are made using lower-carbon processes supported by green hydrogen technologies that aim to reduce the emissions from traditional fertiliser production.

The supply program will cover about 400,000 acres, or around 162,000 hectares, of farmland used for growing crops like potatoes, corn, sunflowers, sugar beets, and rapeseed. These crops are part of the ingredient base for several PepsiCo snack and food products sold in European markets.

Fertiberia has been increasing its investments in green ammonia and low-carbon crop nutrition technologies as demand rises for agricultural inputs with a lower environmental impact. The company claims its products are designed to reduce emissions throughout the agricultural value chain while also supporting crop productivity.

Pilot Projects Show Emissions Reductions

The broader rollout in Europe follows pilot programs conducted by PepsiCo and Fertiberia in Spain and Portugal. According to the companies, these trials showed measurable reductions in emissions linked to crop production.

The companies reported that using Fertiberia’s low-carbon fertilisers cut potato farming emissions by up to 15%, while emissions from corn farming dropped by about 20% during the pilot phase.

The program will start in France, Romania, Serbia, Greece, and Turkey. Existing initiatives in Spain and Portugal will continue to grow. PepsiCo and Fertiberia expect the partnership to expand into more European countries as they increase scale across wider agricultural operations.

Digital Tools and Precision Agriculture Support

Along with supplying fertilisers, the partnership will provide technical support and digital farming tools for growers involved in the program. The companies said precision agriculture technologies will optimize fertiliser application and improve the monitoring of regenerative agriculture practices.

Digital systems are set to help farmers track nutrient use, boost efficiency, and decrease nitrogen losses during crop production. These tools are increasingly being used across agriculture as companies strive to balance productivity with emissions reduction goals.

Fertiberia Chief Operating Officer David Herrero mentioned that the company has been developing lower-carbon hydrogen-based fertilisers since 2022 using technologies like NSAFE. He described NSAFE as a bio-inhibitor of nitrification designed to prevent nitrogen losses and promote agricultural decarbonisation.

Herrero believes that partnerships with companies like PepsiCo are crucial for speeding up efforts to lower emissions across food value chains and advancing the shift towards more sustainable farming systems in Europe.

Food Sector Faces Pressure to Reduce Supply Chain Emissions

This agreement comes as food and beverage companies feel growing regulatory, investor, and consumer pressure to tackle emissions produced throughout their supply chains, especially in agriculture. Scope 3 emissions, which include those generated by suppliers and farming operations, are among the hardest areas for companies to decarbonise.

Agriculture-related emissions are a key focus for companies reliant on large-scale crop production, particularly since fertiliser use is one of the largest sources of farming-related carbon emissions. Industry groups and policymakers are increasingly recognizing green hydrogen and low-carbon ammonia as potential solutions to cut the environmental impact of fertiliser manufacturing.

PepsiCo’s partnership with Fertiberia reflects a broader trend among multinational food companies aiming to integrate lower-carbon agricultural inputs, regenerative farming practices, and digital monitoring systems into their supply chain operations as part of their long-term climate strategies.