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The Central Government recently introduced the BioE3 policy aimed at boosting biotechnology-centric manufacturing in India.
Following this, the Department of Biotechnology is considering setting up enzyme-manufacturing facilities to enhance ethanol production.
Proposed Enzyme-Manufacturing Facilities:
The first enzyme-manufacturing plant is likely to be established in Manesar, Haryana.
This facility is expected to supply enzymes to proposed 2G bio-ethanol plants in Mathura (Uttar Pradesh), Bhatinda (Punjab), and an existing plant in Panipat.
BioE3 Policy Goals:
The BioE3 policy, cleared by the Union Cabinet, aims to establish ‘bio-foundries’ (Biofoundry is a place where biomanufacturing meets automation) that will produce biotechnology-developed feedstock and catalysts.
Ethanol Demand Projections:
According to NITI Aayog, India will require about 13.5 billion liters of ethanol annually by 2025-26.
Of this, 10.16 billion liters will be needed to meet the fuel-blending mandate of E20 (20% ethanol blending with petrol).
2G Bioethanol Production:
2G bioethanol is produced from agricultural residue like rice straw, as opposed to the conventional method using molasses (sugar cane).
The Indian Oil Corporation established the first 2G ethanol plant in Panipat in 2022, which uses rice stubble — a major contributor to pollution in North India — as feedstock.
Panipat 2G Ethanol Plant Details:
The Panipat plant is theoretically capable of producing 1 lakh liters of ethanol per day but currently operates at 30% capacity.
The plant requires 1.5 lakh to 2 lakh tonnes of rice straw per year, which is collected after the sowing period in September-October.
Importance of Enzymes in Ethanol Production:
Enzymes are critical for converting stubble into ethanol, but currently, these enzymes are imported, significantly increasing the cost of production.
Ramesh Sonthi, Director of ICGEB, mentioned that his team has developed enzymes that are as effective, if not better, than the ones currently used at Panipat.
Development of Enzymes:
The enzymes are derived from genetically engineered fungi, specifically from the Penicillium funoculosum family.
Genetic engineering is necessary to produce the enzymes in sufficient quantities, which can then efficiently hydrolyze organic waste like rice stubble.
Ethanol Production Process:
The enzymes facilitate a cell-free system that digests biomass into free sugars, which can be fermented to produce ethanol, cosmetics, and active pharmaceutical ingredients.
If India's future ethanol needs are met using locally developed enzymes, it could result in a roughly two-thirds reduction in enzyme procurement costs.
Sustainability and Food Security Concerns:
NITI Aayog’s report highlights that producing one liter of ethanol requires 2.3 kg of rice, 2.6 kg of maize, or 50 kg of sugar cane.
Using key food crops for ethanol production could lead to conflicts between food and fuel production and is water-intensive.
Alternative Feedstock Recommendations:
The report recommends using agricultural biomass and municipal solid waste as feedstock for ethanol to avoid using key food crops.
This approach also provides an alternative use for agricultural residue, such as rice stubble, which is otherwise burned by farmers.
Punjab alone is expected to produce 20 million tonnes of rice stubble this year.
Even the Panipat plant, at maximum capacity, can process only 2,00,000 tonnes of rice stubble.
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