Key Takeaways
- BASF and Arva have announced a strategic collaboration to help biofuel producers secure verified low-carbon intensity (CI) grain ahead of the finalization of implementing regulations for the Clean Fuel Production Credit (Section 45Z).
- The collaboration connects biorefineries with low-CI grain through both farmer-direct and commercial channels, using BASF's xarvio BIOENERGY platform and Arva's CropForce verification platform.
- Biorefineries gain a pipeline of audit-ready, verified low-CI bushels to support future 45Z credit claims, while farmers can be compensated for existing sustainable practices without disrupting existing procurement relationships.
- The partnership expands BASF's Circalo: Low Carbon Intensity Crops program by adding commercial elevator sourcing alongside existing farmer-direct contracting.
- The integrated system also supports compliance with California Air Resources Board requirements for low-carbon fuel standards, with third-party certification available for defensible documentation.
BASF and Arva Collaborate on Low-CI Grain Verification for Section 45Z
BASF and Arva have announced a strategic collaboration aimed at helping biofuel producers and farmers capture the value of the Clean Fuel Production Credit under Section 45Z of the U.S. tax code, once implementing regulations are finalized. The partnership will connect biorefineries with verified low-carbon intensity grain through both farmer-direct and commercial channels, providing the data and documentation needed to support future 45Z credit claims while compensating farmers for sustainable agricultural practices they are already implementing.
The collaboration is structured to avoid disrupting existing grain procurement relationships. Biorefineries receive a dependable supply of audit-ready, verified low-CI bushels, while farmers gain a pathway to recognition and compensation for practice-based outcomes without altering how their grain moves to market.
“Approximately half of U.S. ethanol production relies on commercially sourced grain. Our collaboration with Arva creates a scalable solution for U.S. ethanol that, when combined with xarvio FIELD MANAGER, will help meet the industry's need for low-CI grain as well as the farmer's need to be recognized for growing it,” said Jeff Carver, Commercial Manager for xarvio BIOENERGY at BASF Agricultural Solutions.
How the BASF and Arva Integration Works
The collaboration expands BASF's existing Circalo: Low Carbon Intensity Crops program by adding a commercial grain channel to its existing farmer-direct contracting capability. Through xarvio FIELD MANAGER, agronomists can help farmers optimize yield potential and lower carbon intensity, connecting field-level data to biorefineries via xarvio BIOENERGY for direct contracting. In parallel, commercial elevators using Arva's CropForce platform to score and verify low-CI grain can now connect directly to xarvio BIOENERGY, enabling biorefineries to identify and verify commercially sourced low-CI grain alongside farmer-direct supply.
The combined system offers four core capabilities: a single view of low-CI feedstock across all procurement channels; a unified 45Z administration workflow that connects to accounting and compliance partners; verified and audit-ready CI scoring supported by third-party certification; and end-to-end digital traceability from field to facility to prevent double-counting and maintain credit integrity.
“Biofuel producers need both verified field-level data and operational simplicity. By integrating our growing network of commercial grain partners and our proven verification capability with BASF's BIOENERGY platform, we can help plants recognize more low-CI bushels so farmers can have a clear way to be rewarded for their regenerative agricultural practices,” said Ryan Pearcy, Managing Director, Biofuels and Renewable Energy at Arva.
BASF Targets 45Z and California LCFS Compliance
Beyond the federal 45Z credit, the field-specific data reporting capabilities of xarvio FIELD MANAGER and CropForce are also designed to help biorefineries meet sustainability requirements set by the California Air Resources Board under its Low Carbon Fuel Standard, along with potential future federal requirements. Third-party certification partners are integrated into the workflow to support defensible compliance documentation.
The announcement positions BASF and Arva ahead of the regulatory finalization process for Section 45Z, giving biofuel producers and their grain supply chains time to establish verified procurement infrastructure before credits become claimable. No financial terms of the collaboration were disclosed.
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