BASF and Arva Partner to Unlock 45Z Tax Credit for Farmers and Biofuel Producers

Arva and BASF Announce Strategic Collaboration to Deliver a Pathway for Farmers and Biofuel Producers to Benefit From the 45Z Biofuel Tax Credit

Integrated CI scoring, commercial elevator verification, and feedstock tracking built to streamline 45Z compliance.

May 19, 2026 — Arva, in collaboration with BASF, today announced a strategic partnership designed to help biofuel producers and farmers capture the full value of the Clean Fuel Production Credit, known as Section 45Z. Together, the initiative will connect biorefineries with verified low carbon intensity (CI) grain through both farmer-direct and commercial channels, rewarding farmers for their regenerative practices and providing biorefineries with the necessary data and documentation.

Through this collaboration, biorefineries gain a dependable pipeline of low CI bushels with audit-ready documentation to support future 45Z claims. At the same time, farmers are recognized and compensated for their sustainable outcomes without disrupting existing procurement relationships or grain flows.

“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.”
— Jeff Carver, Commercial Manager for xarvio® BIOENERGY at BASF Agricultural Solutions

The project expands the capability of BASF’s Circalo: Low Carbon Intensity Crops program, allowing biorefineries to maximize low CI grain procurement. Commercial elevators that have their low CI grain scored and verified through Arva’s CropForce™ platform can now connect to xarvio BIOENERGY, allowing biorefineries to easily identify and verify their commercial procurement.

“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.”
— Ryan Pearcy, Managing Director, Biofuels and Renewable Energy at Arva

In addition to optimizing low CI feedstock for 45Z, the field-specific data reporting power of CropForce™ and xarvio FIELD MANAGER helps biorefineries meet current and future sustainability requirements set by the California Air Resources Board.

What the Collaboration Offers Biofuel Facilities:

• One seamless biorefinery experience: A single system view of low-CI feedstock for biofuel facilities with xarvio BIOENERGY, eliminating fragmented steps between farmer-direct and commercial grain procurement channels. xarvio BIOENERGY serves as a comprehensive tracking tool for any mix of grain sources.
• Turnkey 45Z administration: A unified workflow that adapts to a biorefinery’s operation and works directly with accounting and compliance partners on feedstock submissions.
• Verified and audit-ready feedstock CI scoring: Through integration with xarvio FIELD MANAGER, Arva’s CropForce™ platform enables the generation, verification, and traceable management of 45Z-aligned feedstock CI scores, supported by third-party certification partners for defensible compliance.
• Digital traceability from field to facility: End-to-end traceability that prevents double-counting and maintains credit integrity across both farmer-direct and commercially purchased grain.

Reference: https://agriculture.basf.us/crop-protection/news-events/news-releases/BASF-and-Arva-announce-strategic-collaboration-to-deliver-a-pathway-for-farmers-and-biofuel-producers-to-benefit-from-the-45Z-biofuel-tax-credit.html