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Novonesis highlights key steps needed for India’s grain-based ethanol industry to enter next growth phase

India’s ethanol industry is experiencing significant growth, driven by rising demand for feedstocks like maize and other crops. However, the sector faces several short-term challenges that, if addressed strategically, could unlock its full potential and propel it into its next phase of growth. In an exclusive interview with ChiniMandi, Puneeth Kumar KT, Business Director of Planetary Health Biosolutions, South Asia at Novonesis (formerly Novozymes), shared valuable insights on the challenges, opportunities, and technological innovations shaping the future of ethanol production in India.

Key Challenges in Ethanol Yield: Addressing Feedstock and Process Issues
As ethanol output depends heavily on feedstock quality and production processes, Puneeth emphasized that while producers have limited control over feedstock availability, they can optimize production processes for higher yields. He highlighted the importance of efficient grain storage, effective use of starch, and minimizing losses in the production process. With the recent adoption of maize as a feedstock, producers are increasingly looking for ways to optimize ethanol yield and minimize downtime.

Innovative Approaches to Improve Yield and Co-Product Efficiency
Puneeth discussed how innovative biosolutions can enhance ethanol yield by maximizing plant throughput and extracting key constituents like starch, oil, and protein from grains. He cited an example of how advanced enzyme technology can unlock “bound starch” in corn, which is not readily accessible through conventional methods, thus increasing ethanol yield by up to 2-3%. He also pointed out that extracting corn oil through mechanical and biological processes could provide a new revenue stream for producers, in addition to improving the value of by-products like Distillers’ Dried Grain Solubles (DDGS).

Reducing Production Costs: Strategies for a Sustainable Future
With rising production costs squeezing ethanol margins, Puneeth explained that increasing ethanol yield and monetizing by-products are crucial strategies to address volatile feedstock prices. He highlighted that technologies exist to tap into the various constituents of corn, producing high-value products such as distillers’ corn oil and protein-enriched DDGS. Additionally, there are opportunities to valorize rice protein for use in aquaculture, cosmetics, and animal feed, diversifying revenue sources for producers.

Novonesis’ Technological Innovations for Growth
Novonesis has been at the forefront of developing biosolutions that help ethanol producers optimize their operations. Puneeth shared that Novonesis’ enzyme and yeast solutions are specifically designed to enhance starch conversion, reduce utility consumption, and valorize by-products, thus improving overall yield. Novonesis has successfully collaborated with ethanol producers, such as a leading corn-based ethanol plant in South India, where their solutions increased throughput by 20% and improved ethanol yield by 2%, saving the company INR 4.5 crore annually.

Diversifying Co-Products for Additional Revenue Streams
Puneeth also discussed the importance of diversifying co-products such as Distiller’s Corn Oil (DCO) and DDGS. While DDGS has a niche market in India’s animal feed industry, there is significant potential for growth if its quality can be standardized and its protein content valorized. DCO, although still a nascent market in India, has high potential in applications such as cosmetics and biodiesel production, offering ethanol producers a chance to diversify their revenue streams and reduce reliance on ethanol alone.

Supporting the Ethanol Blending Programme
Novonesis is actively contributing to the Government of India’s Ethanol Blended Petrol (EBP) programme by providing biosolutions that support higher ethanol yields. As the demand for ethanol increases, particularly with the push for 20% ethanol blending, Puneeth explained that Novonesis is focused on helping producers enhance their operational efficiency and expand economies of scale.

Enhancing Maize Productivity Sustainably
As maize demand grows with the expansion of grain-based distilleries, Novonesis is supporting sustainable crop productivity through biosolutions such as biofertilizers, biostimulants, and seed inoculants. These solutions improve soil nutrient accessibility, enhance root structures, and increase crop resilience to stress, ultimately boosting yield potential across diverse geographies.

Future of the Ethanol Industry: A Growth-Oriented Vision
Looking ahead, Puneeth sees a strong growth trajectory for India’s ethanol industry, particularly with the introduction of flex-fuel vehicles and the government’s goal to increase ethanol blending. However, the next phase of growth will require producers to adopt advanced technologies and scale up their operations. Novonesis is positioned to play a key role in this transformation by supporting producers with advanced solutions that increase yield, reduce costs, and enable a shift toward more sustainable and data-driven processes.

Global Lessons for the Indian Ethanol Industry
Drawing parallels with global markets like the U.S. and Brazil, Puneeth noted that the growth of these ethanol industries has been driven by supportive policies, industrial capabilities, and the adoption of cutting-edge technologies. He believes that with the right policy support, India can similarly expand its ethanol industry, adopting advanced biorefining models that produce not just ethanol, but also biofuels and biochemicals, contributing to the nation’s energy security and climate goals.

Commitment to Environmental Sustainability
Novonesis is also committed to reducing the environmental impact of ethanol production. Through its innovations, the company helps producers reduce energy consumption, water usage, and packaging waste, contributing to a more sustainable and eco-friendly industry.

In conclusion, the future of India’s ethanol industry looks promising, with key players like Novonesis leading the charge in technological innovations that increase yield, optimize costs, and diversify revenue streams. With the right combination of policy support, technological advancements, and sustainable practices, India’s ethanol industry is poised to play a critical role in the country’s energy future.

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