Source : The Hindu
A. Issue in Brief
- Bio-based chemicals are produced from renewable biomass (sugarcane, corn, agri-residue) using fermentation or enzymatic processes, offering lower carbon footprint vs petrochemicals.
- India has prioritised the sector under Department of Biotechnology’s BioE3 Policy (2024) — Biotechnology for Economy, Environment, Employment.
- India still imports key intermediates; e.g., ~$480 million acetic acid imports in 2023, showing petrochemical dependence and opportunity for bio-alternatives.
- Global push for net-zero and circular bioeconomy is driving demand for green chemicals, sustainable fuels, and industrial enzymes.
Relevance
- GS-III (Science & Technology)
- Biotechnology, industrial bioprocessing
- Innovation-led growth sectors
- GS-III (Environment)
- Circular economy
- Low-carbon industrial transition
- Waste-to-wealth
B. Static Background
What are Bio-based Chemicals?
- Industrial chemicals derived from biomass instead of fossil fuels, including:
- Organic acids (lactic, acetic)
- Bio-alcohols (ethanol, butanol)
- Bioplastics & solvents
- Used in plastics, cosmetics, pharma, textiles, packaging.
What are Enzymes?
- Biological catalysts enabling reactions at lower temperature & pressure, reducing energy use by 10–30% in some industrial processes (IEA estimates for bioprocessing).
- Key sectors:
- Detergents
- Food processing
- Pharmaceuticals
- Biofuels
Policy Framework
- BioE3 Policy (2024):
- Focus on bio-manufacturing and green growth.
- Links with Atmanirbhar Bharat and Net Zero 2070 goals.
- Related initiatives:
- National Biofuel Policy
- PLI schemes in chemicals & specialty materials
- SATAT for bio-CNG
C. Key Dimensions
1) Economic Potential
- Global bio-based chemicals market:
- Estimated $110–120 billion, projected to grow at ~10–12% CAGR (industry estimates).
- Enzyme market:
- Global size $12–15 billion, dominated by Novozymes (Denmark) and DSM (Netherlands).
- India’s enzyme market:
- Consolidated; top players hold >75% share.
2) Resource Advantage
- India produces 500+ million tonnes of agri-residue annually, much underutilised or burned.
- Strong sugar industry:
- India among top 2 global sugar producers, enabling ethanol and biochemicals.
3) Industrial Base
- Major Indian players:
- Praj Industries – biofuels & biochemicals.
- Godavari Biorefineries – bio-based chemicals & ethanol.
- Advanced Enzyme Technologies, Rossari Biotech – industrial enzymes.
4) Environmental Gains
- Bio-based chemicals can reduce lifecycle emissions by 30–80% vs petrochemicals (EU bioeconomy studies).
- Support circular economy and waste-to-wealth models.
D. Critical Analysis
Opportunities
- Reduces import dependence on petrochemicals.
- Creates new markets for farmers via biomass value chains.
- Aligns with global ESG investment flows toward green manufacturing.
Risks / Constraints
- Cost disadvantage vs fossil-based chemicals when crude prices are low.
- Limited bioprocessing infrastructure:
- Few bio-foundries, pilot plants, scale-up facilities.
- Technology gaps:
- Advanced enzymes and fermentation tech often imported.
- Market adoption:
- Downstream industries reluctant without price parity.
E. Way Forward
- Scale shared bio-manufacturing infrastructure (bio-foundries, pilot plants).
- Offer green procurement incentives for bio-based products.
- Support R&D-industry linkages via DBT and BIRAC.
- Develop standards & certification for bio-based products.
- Integrate with carbon markets and green finance.
F. Exam Orientation
Prelims Pointers
- BioE3 Policy – DBT initiative.
- Enzymes reduce energy need in industry.
- Bio-based chemicals derive from biomass, not fossil fuels.
- India major agri-residue producer.
