Why in News?

The Department of Biotechnology is considering establishing enzyme-manufacturing facilities to support ethanol production.

This comes after the Center's announcement of its BioE3 (Biotechnology for Economy, Environment and Employment) policy aimed at promoting biotechnology-centric manufacturing in India.

What’s in Today’s Article?

• What is BioE3 Policy for Fostering High Performance Biomanufacturing?
• Ethanol Requirements in India
• Efforts to Boost Ethanol Production in India
• Significance of Establishing Enzyme-Manufacturing Facilities in India

What is BioE3 Policy for Fostering High Performance Biomanufacturing?

• What is high-performance biomanufacturing? It involves -
  • The production of products ranging from medicine to materials, tackling farming and food challenges, and
  • Promoting the manufacturing of bio-based products through the integration of advanced biotechnological processes.
• Focus areas of the policy: It primarily concentrates on the following 6 strategic sectors:
  • High-value bio-based chemicals, biopolymers & enzymes;
  • Smart proteins & functional foods;
  • Precision biotherapeutics;
  • Climate-resilient agriculture;
  • Carbon capture & its utilisation; and
  • Marine and space research.
• Key features of the policy: The BioE3 policy's key aspects involve -
  • Supporting innovation-driven R&D and entrepreneurship across various thematic sectors.
  • Expedite the development and commercialisation of technology through the establishment of Biomanufacturing & Bio-AI hubs and Biofoundry.
  • Bolster the Government's initiatives such as 'Net Zero' carbon economy and 'Lifestyle for Environment'.
  • Guiding India towards accelerated 'Green Growth' by encouraging 'Circular Bioeconomy'.
  • Nurture an advanced future that is more sustainable, innovative, and responsive to global challenges and sets out the Bio-vision for Viksit Bharat.
• Significance:
  • It will address some of the critical societal issues-such as climate change mitigation, food security and human health.
  • It is important to build a resilient biomanufacturing ecosystem in India to accelerate cutting-edge innovations for developing bio-based products.

Ethanol Requirements in India:

• According to the NITI Ayog estimates, India will need about 13.5 billion litres of ethanol annually by 2025–26.
• Of this, about 10.16 billion litres will go towards meeting the fuel-blending mandate of E20.
  • The Ethanol Blended Petrol (EBP) Programme was launched by the Ministry of Petroleum and Natural Gas in
  • Under this, Oil Marketing Companies (OMCs) would sell petrol blended with ethanol up to 10% (E10).
  • The all-India average blending of ethanol with petrol has risen from 1.6% in 2013-14 to 11.8% in 2022-23.
  • India's goal is to grow this ratio to 20% (E20) by 2025.

Efforts to Boost Ethanol Production in India:

• 2G ethanol plant in Panipat, Haryana:
  • ‘2G’ or second-generation bioethanol is ethanol that is produced from rice-straw as opposed to the conventional method of sourcing it from molasses (sugarcane).
  • In 2022, the Indian Oil Corporation Ltd. set up a first-of-its-kind 2G ethanol plant in Panipat that uses rice stubble as a feedstock.
  • The facility has the potential to produce 1,00,000 litres of ethanol per day. However, the burning of rice stubble spikes pollution in north India.
• The BioE3 policy: Among other things, it aims to set up ‘bio-foundries’ that will produce biotechnology-developed feedstock and catalysts.
• Establishing enzyme-manufacturing facilities:
  • The enzymes in question are derived from tweaking a fungus (through several steps of genetic engineering) that belongs to a broader family of fungi called Penicillium funiculosum (derived from rice stubble and soil).
  • Such enzymes then act as an efficient hydrolyser of organic refuse such as rice stubble.
  • The first such plant to produce the necessary enzymes may come up in Manesar, Haryana.
  • It is expected to provide the required enzymes to the existing plant in Panipat (Haryana) and the proposed 2G bioethanol plants in Mathura (UP) and Bhatinda (Punjab).

Significance of Establishing Enzyme-Manufacturing Facilities in India:

• Support ethanol production: A combination of enzymes and the right kind of treatment are essential for turning stubble into ethanol.
• Reduce import bill and cost of ethanol production:
  • As of today, these enzymes are imported and constitute a significant component of the cost of the 2G-ethanol production process.
  • If India's ethanol requirements in the future were to be met by locally produced enzymes, the cost of obtaining the enzymes might be reduced by about two third.