Digital tools target carbon intensity tracking across ethanol supply chain

BASF, Research Triangle Park, North Carolina, has introduced a digital platform designed to help farmers, agronomists and ethanol producers document and verify the carbon intensity of crop production as the industry prepares for federal clean fuel tax credit requirements.

The platform, called Circalo: Low Carbon Intensity Crops, connects on-farm data with ethanol producers using BASF’s Xarvio Field Manager and Xarvio Bioenergy tools. The system is intended to convert agronomic data into verifiable inputs that can support low-carbon fuel production strategies under Section 45Z, the Clean Fuel Production Credit.

The tax credit, established under the Inflation Reduction Act, is expected to increase the importance of measuring carbon intensity across the ethanol supply chain. Industry stakeholders anticipate that the carbon intensity of feedstocks will play a larger role in determining market access and margins for biofuel producers.

BASF officials said the platform is designed to address challenges related to inconsistent data collection and limited verification systems that have made it difficult for ethanol plants to incorporate farm-level practices into carbon intensity calculations.

The system allows agronomists to collect field-level data on practices such as cover crops, reduced tillage and nutrient management. That data can then be aggregated across a biorefinery’s grower network and used to calculate carbon intensity based on proposed 45Z guidelines.

According to BASF, the platform also supports third-party verification, enabling ethanol producers to generate reports that meet regulatory requirements tied to low-carbon fuel incentives.

Company representatives said the platform is intended to help ethanol plants work more directly with farmers and agronomy networks to document measurable changes in production practices.

The system also provides biorefineries with a broader view of feedstock sourcing, including total bushels and average carbon intensity, which may factor into eligibility for tax credits and other incentives.

BASF said Circalo is available for the 2026 growing season and can incorporate data from the 2025 season. The company noted the platform is designed to adapt as federal agencies finalize rules and methodologies tied to the 45Z program.

For more information, see a representative or visit basf.com.