Context:

The Department of Biotechnology is considering the establishment of Enzyme-manufacturing facilities to enhance ethanol production.

More on the news

• The Indian government recently introduced the BioE3 policy to promote biotech manufacturing in the country.
• The BioE3 policy aims to establish ‘bio-foundries’ to produce biotechnology-developed feedstock and catalysts, supporting various biotechnological applications.
• As part of this initiative, the first such plant may come up in Manesar, Haryana and will likely be a supplier to proposed 2G bio-ethanol plants in Mathura (Uttar Pradesh), Bhatinda (Punjab) and an existing plant in Panipat.
• The enzymes, developed by the International Centre for Genetic Engineering and Biotechnology (ICGEB), have shown promising results in ethanol production trials.

Ethanol Production and Blending Targets

Ethanol Demand and Blending Target:

• By 2025–26, India will need approximately 13.5 billion liters of ethanol annually.
• Of this, about 10.16 billion liters will be used to meet the E20 fuel-blending mandate, aiming for a 20% ethanol blend in petrol.
• Current blending levels have increased to 13%–15%, up from 8% in 2021.

Capacity Expansion:

• Sugarcane-based distilleries' capacity is projected to grow from 426 crore liters in 2021 to 760 crore liters by 2026.
• Grain-based distilleries' capacity should expand from 258 crore liters to 740 crore liters over the same period.

The Role of Enzymes in Ethanol Fermentation:

• 1st Generation Ethanol Production: Enzymes like Alpha-Amylase and Glucoamylase convert starches from grains into fermentable sugars, with additional proteases used to enhance yield.
• 2nd Generation Ethanol Production: Utilizes plant waste and woody biomass; enzymes like Cellulase, Pectinase, and Hemicellulase break down plant material into fermentable glucose.
• 3rd Generation Ethanol Production: Enzymes for seaweed-based ethanol, including tailored cellulase and amylase, convert complex seaweed polysaccharides into fermentable sugars, avoiding energy-intensive pretreatment.

Second-Generation (2G) Bio-Ethanol:

• 2G bio-ethanol, produced from rice straw rather than sugarcane molasses, presents an alternative to conventional methods.
• In 2022, Indian Oil Corporation Ltd. set up a 2G ethanol plant in Panipat using rice stubble as feedstock.
• The plant has a potential production capacity of 100,000 liters per day but operates at 30% capacity, needing 150,000–200,000 tonnes of rice straw annually.

Significance of Enzyme Manufacturing Facilities

• Supporting 2G Bio-Ethanol Production: Facilities are crucial for enhancing the production of second-generation (2G) bio-ethanol.
• Reducing Dependence on Imports: Locally manufactured enzymes can cut production costs by two-thirds compared to imported enzymes, enhancing the competitiveness of India's bio-ethanol industry.
• Environmental and Economic Benefits: Converting agricultural waste like rice stubble into ethanol with enzymes manages residues, reduces pollution, supports sustainable fuel production, and adds economic value to otherwise wasted biomass, contributing to a circular economy.
• Innovation and Technological Advancement: The development of advanced enzymes from genetically engineered fungi, such as Penicillium funoculosum, represents a significant technological advancement in the bio-ethanol sector.