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Food and beverage major PepsiCo will use blue hydrogen-based nitrogen fertilisers from CF Industries to grow potatoes, in the fertiliser firm’s first commercial deal for its low-carbon urea ammonium nitrate (UAN).
UAN produced at CF’s Donaldsonville plant in Louisiana, which was equipped with carbon capture and storage systems will be distributed to retailers selling to US potato farmers who supply PepsiCo’s Frito-Lay Chip brands.
It’s a move that could help reduce the food giant’s emissions footprint, with CF stating production accounts for up to 20% of greenhouse gas emissions in potato farming.
The pair also plan to look at additional opportunities.
“Collaborating with CF Industries to deploy certified low-carbon fertiliser across our potato supply chain allows us to reduce emissions while supporting farmers with solutions that fit seamlessly into their existing operations,” PepsiCo’s North America sustainability head, Burgess Davis, said.
Volumes of fertilisers and commercial terms included in the deal have not been disclosed.
However, CF’s Vice-President, Clean Energy and Business Development, Erik Meyer, claimed the deal showed that low-carbon fertilisers are “viable today.”
CF has been ramping up deals for its low-carbon hydrogen-based fertilisers since bringing CCS online in Donaldsonville.
Earlier this year, the first revealed that it had been supplying to farmers growing corn that will be .
Feedstock-related clean hydrogen applications like fertiliser production are becoming increasingly attractive to investors due to potentially low impact on end-product prices.
A report by the initiative said the cost increase to consumers for products made with clean fertilisers could be just 1% to 3%.
