Published on April 25, 2014

The Indian agricultural industry has furthered the growth of biofuels and biochemicals mainly because companies are now on the lookout for renewable raw material. India is amongst the largest producers of agricultural produce and a large amount of this agricultural material goes unused. If used properly, this produce can help generate energy and chemicals. The industry has now started looking for renewable sources. Growing population, increasing consumption and climatic changes have led to a rise in demand for bio-based solutions.

The need to ensure energy and resource security as well as to prevent environmental degradation has motivated firms to invest in sustainable processes and products.

The growing demand for oil, oil shortage as well as oil price volatility has created a need for better alternatives to oil-based chemicals.

Biochemicals manufactured from renewable sources can help meet the growing demand for sustainable and cleaner alternatives. These biochemicals can also be produced from agricultural residues.

Experts estimate that by 2025 biochemicals could contribute nearly 17 per cent of the global chemical industry.

Industries are now looking for a cleaner substitute to petroleum-based products. Volatile crude oil prices and the rapidly increasing petroleum subsidiary bill have pushed the Indian government to make blending ethanol with petrol mandatory. This in turn has led to an increased demand for bioethanol.

Demand for ethanol as fuel in India is currently modest. India has laid down an E5 mandate for gasoline E20 target for the year 2017.

In order to provide a sustainable solution for bio-based chemicals we need to choose raw materials very carefully. Currently, a large amount of chemicals are manufactured from food crops, but this method is considered unsustainable. Producing chemicals from food crops cannot help bring down greenhouse gas emissions. As a result, demand for cellulosic sugars and cellulosic fuel ethanol are growing. Demand for technology that converts biomass into ethanol is also increasing. For instance, Praj Industries is setting up its second generation cellulosic ethanol demo plant in Maharashtra.

Ethanol is one of the most important raw materials used in the chemical industry. And bioethanol can help further use of green chemicals.

Other agri-produce like veg oils, castor oil, palm oil, etc, can also be used to produce biochemicals.
Bio-based chemicals can be used for personal care, food additives, biosurfactants, biopolymers and biolubricants. Many international firms are sourcing raw materials for producing bio-based chemicals from India.

Thus, India has turned into a very profitable market for bio-based chemicals.