Enzyme Manufacturing to Boost Ethanol Industry

Syllabus :GS 3/Environment 

In News

• The Department of Biotechnology is considering setting up enzyme-manufacturing facilities to support ethanol production.

About 

• The first plant may be established in Manesar, Haryana.
• The facility will supply enzymes to 2G bioethanol plants in Mathura (Uttar Pradesh), Bhatinda (Punjab), and an existing plant in Panipat.

Ethanol Production:

• Ethanol is an agricultural by-product which is mainly obtained from the processing of sugar from sugarcane, but also from other sources such as rice husk or maize.
• India’s total ethanol production capacity is currently 1,589 crore litres.

Focus:

• The current emphasis is on first-generation (1G) ethanol from food grains and sugarcane.
• There are calls to diversify into second-generation (2G) and third-generation (3G) ethanol to mitigate food security impacts.
  • 2G bioethanol is produced from agricultural waste like rice straw, unlike conventional ethanol from molasses.
  • Indian Oil Corporation Ltd. operates a 2G ethanol plant in Panipat using rice stubble as feedstock.

Ethanol Blending Target:

• Ethanol blending in India reached 13.3% by July 2024, up from 12.6% during the 2022-23 season.
• The Union government aims to increase the ethanol blending rate in petrol to 20% by 2025, up from the current 13%.

Importance 

• Production of ethanol has led to proportionate reduction in the import of petroleum or crude oil which has resulted in saving of foreign exchange for India
  • India’s ethanol blending program has saved Rs 99,014 crore in foreign exchange since 2014
• Ethanol production has recharged rural economies, providing employment opportunities and improving livelihoods.
• By utilising surplus crops and damaged food grains for ethanol production, farmers have found an additional source of income.

Initiatives 

• The Indian government is implementing an Ethanol Blending Program (EBP) across the country, under which oil marketing companies (OMCs) sell petrol blended with ethanol.
• The government has lifted restrictions on ethanol production from sugarcane juice, B-heavy, and C-heavy molasses for the ethanol supply year starting in November.

Concerns:

• In tropical countries like India and Brazil, sugarcane is more efficient for ethanol production.
  • However, intensive sugarcane cultivation can lead to environmental and food production challenges.
• Increased maize imports and use for ethanol production are raising concerns about food security.

State-Level Differences:

• States have different impacts and responses to ethanol policies. For instance:
  • Uttar Pradesh is a major contributor to the ethanol blending program and supports the central government’s ethanol mission.
  • Tamil Nadu is cautious about ethanol due to its liquor market and water concerns, preferring maize as an alternative feedstock.
  • Maharashtra finds more profit in producing Extra Neutral Alcohol (ENA) for other uses rather than ethanol blending.

Conclusion and Way Forward 

• India faces a dilemma between meeting ethanol targets and managing food inflation.
  • Options include reconsidering the ethanol target, investing in public infrastructure, and focusing on renewable energy sources like solar power.
• The future policies must involve close collaboration between the central and state governments.
  •  It should provide sustained financial and infrastructural support to achieve meaningful results, rather than expecting immediate returns.

Source: TH