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BASF & Arva Team Up to Help Growers Receive Benefits of 45Z Credit

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Key Takeaways

  • BASFY and Arva will connect biorefineries with verified low-carbon intensity grain sources.
  • xarvio BIOENERGY and CropForce will verify low-CI grain and support Section 45Z compliance.
  • BASFY says nearly half of U.S. ethanol production relies on commercially sourced grain.

BASF SE (BASFY - Free Report) has announced a strategic collaboration with Arva to help biofuel producers and farmers maximize the benefits of the Clean Fuel Production Credit (Section 45Z) once regulations are finalized. The partnership will connect biorefineries with verified low-carbon intensity (CI) grain through both farmer-direct and commercial channels.

The collaboration combines BASFY’s xarvio BIOENERGY and xarvio FIELD MANAGER platforms that will allow biorefineries to identify and verify low-CI grain while rewarding farmers for implementing these practices that reduce carbon emissions and provide the required data and documentation.

According to BASFY, nearly half of U.S. ethanol production depends on commercially sourced grain, creating a growing need for scalable low-CI grain solutions. The integrated system will maximize the feedstock procurement while allowing scoring and verification of low-CI grain through Arva’s CropForce platform that can now be connected to xarvio BIOENERGY. In addition to supporting Section 45Z compliance, the partnership may also help biorefineries meet sustainability standards established by the California Air Resources Board.

The partnership could strengthen the sustainable farming practices and renewable fuel production, while giving farmers greater recognition and rewards for reducing carbon emissions across the agricultural supply chain.

BASFY has gained 23.1% over the past year compared with the industry’s 12.3% growth.

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BASFY’s Zacks Rank & Key Picks

BASFY currently carries a Zacks Rank #3 (Hold).

Some better-ranked stocks in the Basic Materials space are CF Industries Holdings, Inc. (CF - Free Report) , Albemarle Corporation (ALB - Free Report) and Avino Silver & Gold Mines Ltd. (ASM - Free Report) .

While CF and ALB sport a Zacks Rank #1 (Strong Buy) each at present, ASM carries a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.

The Zacks Consensus Estimate for CF’s 2026 earnings is pegged at $15.67 per share, indicating a rise of 67.24% year over year. Its earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, with an average surprise of 11.42%. CF’s shares have soared 28.5% over the past year.

The Zacks Consensus Estimate for ALB’s 2026 earnings is pinned at $12.45 per share, indicating a 1,675.95% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, while missing it in one, with an average surprise of 74.5%. ALB’s shares have jumped 215.8% over the past year.

The Zacks Consensus Estimate for ASM’s current fiscal-year earnings is pinned at 39 cents per share, indicating a 34.48% year-over-year increase. Its earnings beat the Zacks Consensus Estimate in each of the four trailing quarters, with an average earnings surprise of 125.9%.

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