ETHANOL PRODUCTION -
ECONOMY
News: The
Department of Biotechnology is exploring the development of
enzyme-manufacturing facilities to enhance ethanol production. This initiative
aligns with the recent launch of the BioE3 policy—Biotechnology for Economy,
Environment, and Employment—aimed at fostering biotechnology-driven
manufacturing in India. This move is part of a broader strategy to integrate
more biotechnology solutions into India’s industrial landscape, with a focus on
boosting economic growth, environmental sustainability, and job creation.
What’s in the news?
Overview of BioE3 Policy
for Enhanced Biomanufacturing:
- Definition of High-Performance
Biomanufacturing:
- Involves
production of a wide range of products, including medical and material
goods, while addressing agricultural challenges.
- Focuses
on crafting bio-based products via sophisticated biotechnological
methods.
- Strategic Focus Areas:
- Development
of high-value bio-based chemicals, enzymes, and biopolymers.
- Innovation
in smart proteins and functional foods.
- Advancements
in precision biotherapeutics.
- Promotion
of climate-resilient agricultural methods.
- Enhancements
in carbon capture and utilization.
- Research
in marine and space sectors.
- Key Policy Features:
Encourages research and entrepreneurship across
targeted sectors.
- Aims
for rapid technology development and market introduction through Bio-AI
hubs and biofoundries.
- Supports
government initiatives for a ‘Net Zero’ carbon economy and sustainable
living.
- Advocates
for ‘Green Growth’ through a ‘Circular Bioeconomy’.
- Envisions
a sustainable and innovative future addressing global challenges, aligned
with the Bio-vision for a Developed India.
Policy Significance:
- Addresses
critical issues like climate change, food security, and public health.
- Seeks
to establish a robust biomanufacturing ecosystem to foster innovative
bio-based product development.
Ethanol Production and
Utilization in India:
Annual Ethanol Demand:
- NITI
Aayog projects a need for approximately 13.5 billion liters of ethanol
annually by 2025-26.
- Approximately
10.16 billion liters are expected to fulfill the E20 fuel-blending
requirements.
Ethanol Blended Petrol
Programme (EBP)
- Ethanol Blended Petrol (EBP)
programme was launched in 2003- and this initiative is pursued
aggressively in the last 4 to 5 years to reduce import dependence of crude
oil as well as mitigate environmental pollution.
- The Ethanol Blending Programme (EBP)
seeks to achieve blending of Ethanol with motor sprit with a view to
reducing pollution, conserve foreign exchange and increase value addition
in the sugar industry enabling them to clear cane price arrears of farmers.
- Although the Government of India
decided to launch EBP programme in 2003 for supply of 5% ethanol blended
Petrol, it later scaled up blending targets from 5% to 10% under the
Ethanol Blending Programme (EBP).
- The Government of India has also
advanced the target for 20% ethanol blending in petrol (also called E20)
to 2025 from 2030.
- Currently, 8.5% of ethanol is blended
with petrol in India.
Enhancing Ethanol
Production in India Through Innovative Methods:
Introduction of 2G Ethanol Plant in Panipat, Haryana:
- Utilizes
second-generation bioethanol technology, which converts agricultural
waste such as rice straw into ethanol, diverging from traditional
molasses-based methods.
- Established
by Indian Oil Corporation Ltd. in 2022, this pioneering facility has the
capacity to produce 100,000 liters of ethanol daily.
- Although
it offers a sustainable use for rice stubble, the process can increase
air pollution due to the burning of stubble.
BioE3 Policy
Implementation:
- Aims
to innovate within biotechnology by creating ‘bio-foundries’ for
developing new types of feedstock and catalysts, enhancing the
sustainability and efficiency of bio-manufacturing processes.
Development of Enzyme
Manufacturing Units:
- Enzymes
for ethanol production are being developed from genetically modified
Penicillium funiculosum, a fungus that breaks down rice stubble and soil.
- A
facility planned in Manesar, Haryana, is expected to supply enzymes to
both the Panipat plant and forthcoming facilities in Mathura (Uttar
Pradesh) and Bhatinda (Punjab).
Importance of Local
Enzyme Production Facilities:
- Essential
for the conversion of agricultural waste to ethanol, these enzymes can
significantly decrease production costs.
- By
producing enzymes domestically, India could significantly reduce its
import costs, potentially cutting the overall expense of ethanol
production by approximately two-thirds, aligning with national energy and
environmental goals.