New collaboration helps farmers and biofuel producers access 45Z credit
BASF and Arva have announced a strategic collaboration to support farmers and biofuel producers in accessing the benefits of the Clean Fuel Production Credit, also known as Section 45Z. The initiative aims to connect biorefineries with verified low carbon intensity grain through both direct farm supply and commercial channels.
The partnership focuses on improving how low carbon grain is tracked, verified, and delivered across the supply chain. Farmers can continue their current practices while gaining recognition and potential financial rewards. At the same time, biofuel producers receive reliable, audit-ready data required to claim 45Z incentives.
Through this collaboration, digital tools from both companies will be integrated. BASF’s xarvio BIOENERGY platform will connect with Arva’s CropForce™ system, allowing commercial grain elevators to share verified carbon intensity data. This creates a smoother link between farm-level data and biofuel production needs.
“Approximately half of U.S. ethanol production relies on commercially sourced grain,” said Jeff Carver, Commercial Manager for xarvio® BIOENERGY at BASF Agricultural Solutions. “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.”
The solution also supports existing programs such as BASF’s low carbon crop initiatives. Farmers can use digital platforms to improve yields while reducing carbon intensity and sharing verified data with biorefineries. This helps create a dependable supply of low carbon grain without changing current grain marketing systems.
“Biofuel producers need both verified field-level data and operational simplicity,” said Ryan Pearcy, Managing Director, Biofuels and Renewable Energy at Arva. “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.”
Industry leaders highlight the importance of combining data accuracy with simple operations. The collaboration is designed to make it easier for biofuel producers to identify and use low carbon grains while ensuring farmers are rewarded for sustainable practices.
Additional benefits include improved compliance with sustainability standards and future regulations. The integrated system enables accurate reporting, prevents double counting, and ensures full traceability from field to facility.
Overall, the BASF and Arva partnership strengthens the connection between agriculture and renewable energy markets. By enhancing transparency and efficiency, the collaboration supports farmers, biofuel producers, and the broader goal of reducing carbon emissions in the agricultural supply chain.
Photo Credit: istock-dusanpetkovic