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.