 "Agricultural residues is the only way to achieve ethanol production targets: G S Krishnan, Novozymes")
Novozymes, a leading global enzymes player, began its Indian operations in 1983 with two employees operating from a business centre. Since then the Indian operations have grown into an organisation spread across three sites in India (Bangalore) with over 450+ employees.
In this exclusive interview with Rakesh Rao, G S Krishnan, Regional President – India at Novozymes South Asia Pvt Ltd, discusses the benefits of enzymes and market potential of second generation ethanol in India.
How important is India for Novozymes global business?
India is a developing market for enzymes business and, thus, significant for Novozymes. Over the years we have sustained our position as the largest supplier of industrial enzymes and microorganisms in India. We play a leadership role in most of the industrial segments which have grown substantially over the years including detergents, textiles, food and beverage, oil & fats. We have been maintaining a double digit growth and we are confident that this growth will continue.
We see a further growth in the bioenergy segment especially second generation ethanol from agricultural residues.
How is the enzymes market in India? Are you seeing a growth in new users (or industrial applications) of enzymes in India?
While enzymes have been in use for many decades, there exists a big opportunity in the Indian industrial enzymes market even in the established businesses. To give a comparison China enzymes market is 7-8 times bigger than India.
As already mentioned, the sector has a huge potential and is currently growing at double digit. The opportunity for the future will primarily be driven by surge in middle class population with increased spending pattern and constant increase in demand for quality products. Also with environmental concerns and climate change issues which need to be addressed, there will be a need for more industries to adapt to sustainable solutions. Especially detergents, textile and food segments which are existing applications and bioenergy segment will see good growth going further.
Are oil companies in India in position to meet the obligation to sell gasoline blended with 20% ethanol by 2017? If not, how can we achieve this?
Currently ethanol in India is predominately produced from sugarcane molasses which is dependent on the sugarcane crop. Also current ethanol produced from sugarcane molasses and grain is majorly used by the portable alcohol industry and as industrial alcohol. So the availability of excess ethanol today might be sufficient for 5-10% blending mandate, but again to repeat it depends on the excess molasses ethanol produced. Thus, to fulfil the target of 20% blending, India needs to look at other alternative to fossil fuel.
ALSO READ: Can second generation ethanol fuel India's growth?
This can be achieved only by producing ethanol from agricultural residues or what is termed as second generation ethanol. After 10 years of research, and development the technology is today available and it is only a question of ensuring that agricultural residues/biomass is made available to the industry. This is definitely an area which needs to be addressed for this technology to take off in India.
Beta Renewables, a part of Mossi Ghisolfi Group and Novozymes have recently opened the world’s largest second generation facility in Northern Italy using the PROESA Technology. This plant primarily produces bioethanol from agricultural residues like wheat straw, rice straw and energy crop using enzymatic conversion. We are seeing a lot of interest from certain Indian companies in this technology as well.
There is a need for Government support in making the feedstock available, incentivising the farmers and overall support with necessary funding to especially the first movers of this technology.
In spite of having access to vast amount of agri-waste, India is still unable to produce significant amount of bio-fuels energy. What are the reasons for these?
As already mentioned above, only now the technology is available, and there are DBT sponsored pilot projects which have shown positive developments. Also our partners - Beta Technology is ready with this technology. The fast adoption and success of this technology in India is completely dependent on the access of biomass which is off course available. Proactive steps from MNRE and other relevant ministries to support the industry will make it successful and develop at a faster pace.
There is apprehension in the Indian chemical industry that mandatory blending of ethanol with gasoline will lead to short supply of ethanol for chemical companies, who will have to depend on imports. Is there any solution to this? Can enzymes offer solution in such a situation?
As mentioned above, India has vast availability of agricultural residues which can be used to produce bioethanol through enzymatic process. Amount of agricultural residues available in India is sufficient enough to take care of demand from the oil companies as well as chemical industry.
In India, bioethanol primarily finds application in fuel industry. Do you see a market for bioethanol in chemical manufacturing (globally and in India)?
Renewable raw materials such as starch from corn or cellulosic biomass from agricultural waste can be used as the raw materials for production of bioethanol and biochemicals. Over the last decades, Novozymes has built up a technology platform where sugars are used as the foundation for subsequent conversion. In the production process the sugars are transformed into chemical building blocks by enzymes or microorganisms that have been designed specifically for this purpose.
ALSO READ: Henkel has ambitious plans for expanding its business in India: Jeremy Hunter
The contribution of biotechnology is still modest in the chemical industry, but it is gaining momentum. Analysts and researchers estimate that biochemicals could contribute as much as 17% of the global chemical market by 2025. India has the potential given the vast availability of agricultural residues which can be used to convert to ethanol and biochemicals.
How will formation of The BioAg Alliance (with Monsanto) benefit Novozymes’ Indian business?
The strategic alliance has been formed to transform research and commercialisation of sustainable microbial products that will provide a new platform of solutions for growers around the world including India. This alliance will help farmers globally meet the challenge of producing more with less in a sustainable way – for the benefit of agriculture, consumers, the environment and society at large. Definitely we see this alliance growing the Indian bioag business to a greater extend.
What is the outlook of enzymes market in India?
While Indian enzyme market has a marginal share in the global market, there is a huge potential for it to grow. As mentioned above, environmental and climate change concerns, the increasing spending pattern especially by the growing middle class population will help the industry to grow in a big way. With increased demand for quality products, enzymatic solutions especially in food segment, detergents and textile, are going to see a significant growth. Bioenergy segment will also be playing an important role in the next 2-3 years for the growth of this segment in India.
We expect the food regulatory process to be more industry friendly and in line with international standards which would help to facilitate launch of new innovative products in India faster, in line with the rest of the world.
In this exclusive interview with Rakesh Rao, G S Krishnan, Regional President – India at Novozymes South Asia Pvt Ltd, discusses the benefits of enzymes and market potential of second generation ethanol in India.
How important is India for Novozymes global business?
India is a developing market for enzymes business and, thus, significant for Novozymes. Over the years we have sustained our position as the largest supplier of industrial enzymes and microorganisms in India. We play a leadership role in most of the industrial segments which have grown substantially over the years including detergents, textiles, food and beverage, oil & fats. We have been maintaining a double digit growth and we are confident that this growth will continue.
We see a further growth in the bioenergy segment especially second generation ethanol from agricultural residues.
How is the enzymes market in India? Are you seeing a growth in new users (or industrial applications) of enzymes in India?
While enzymes have been in use for many decades, there exists a big opportunity in the Indian industrial enzymes market even in the established businesses. To give a comparison China enzymes market is 7-8 times bigger than India.
As already mentioned, the sector has a huge potential and is currently growing at double digit. The opportunity for the future will primarily be driven by surge in middle class population with increased spending pattern and constant increase in demand for quality products. Also with environmental concerns and climate change issues which need to be addressed, there will be a need for more industries to adapt to sustainable solutions. Especially detergents, textile and food segments which are existing applications and bioenergy segment will see good growth going further.
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Are oil companies in India in position to meet the obligation to sell gasoline blended with 20% ethanol by 2017? If not, how can we achieve this?
Currently ethanol in India is predominately produced from sugarcane molasses which is dependent on the sugarcane crop. Also current ethanol produced from sugarcane molasses and grain is majorly used by the portable alcohol industry and as industrial alcohol. So the availability of excess ethanol today might be sufficient for 5-10% blending mandate, but again to repeat it depends on the excess molasses ethanol produced. Thus, to fulfil the target of 20% blending, India needs to look at other alternative to fossil fuel.
ALSO READ: Can second generation ethanol fuel India's growth?
This can be achieved only by producing ethanol from agricultural residues or what is termed as second generation ethanol. After 10 years of research, and development the technology is today available and it is only a question of ensuring that agricultural residues/biomass is made available to the industry. This is definitely an area which needs to be addressed for this technology to take off in India.
Beta Renewables, a part of Mossi Ghisolfi Group and Novozymes have recently opened the world’s largest second generation facility in Northern Italy using the PROESA Technology. This plant primarily produces bioethanol from agricultural residues like wheat straw, rice straw and energy crop using enzymatic conversion. We are seeing a lot of interest from certain Indian companies in this technology as well.
There is a need for Government support in making the feedstock available, incentivising the farmers and overall support with necessary funding to especially the first movers of this technology.
In spite of having access to vast amount of agri-waste, India is still unable to produce significant amount of bio-fuels energy. What are the reasons for these?
As already mentioned above, only now the technology is available, and there are DBT sponsored pilot projects which have shown positive developments. Also our partners - Beta Technology is ready with this technology. The fast adoption and success of this technology in India is completely dependent on the access of biomass which is off course available. Proactive steps from MNRE and other relevant ministries to support the industry will make it successful and develop at a faster pace.
There is apprehension in the Indian chemical industry that mandatory blending of ethanol with gasoline will lead to short supply of ethanol for chemical companies, who will have to depend on imports. Is there any solution to this? Can enzymes offer solution in such a situation?
As mentioned above, India has vast availability of agricultural residues which can be used to produce bioethanol through enzymatic process. Amount of agricultural residues available in India is sufficient enough to take care of demand from the oil companies as well as chemical industry.
In India, bioethanol primarily finds application in fuel industry. Do you see a market for bioethanol in chemical manufacturing (globally and in India)?
Renewable raw materials such as starch from corn or cellulosic biomass from agricultural waste can be used as the raw materials for production of bioethanol and biochemicals. Over the last decades, Novozymes has built up a technology platform where sugars are used as the foundation for subsequent conversion. In the production process the sugars are transformed into chemical building blocks by enzymes or microorganisms that have been designed specifically for this purpose.
ALSO READ: Henkel has ambitious plans for expanding its business in India: Jeremy Hunter
The contribution of biotechnology is still modest in the chemical industry, but it is gaining momentum. Analysts and researchers estimate that biochemicals could contribute as much as 17% of the global chemical market by 2025. India has the potential given the vast availability of agricultural residues which can be used to convert to ethanol and biochemicals.
How will formation of The BioAg Alliance (with Monsanto) benefit Novozymes’ Indian business?
The strategic alliance has been formed to transform research and commercialisation of sustainable microbial products that will provide a new platform of solutions for growers around the world including India. This alliance will help farmers globally meet the challenge of producing more with less in a sustainable way – for the benefit of agriculture, consumers, the environment and society at large. Definitely we see this alliance growing the Indian bioag business to a greater extend.
What is the outlook of enzymes market in India?
While Indian enzyme market has a marginal share in the global market, there is a huge potential for it to grow. As mentioned above, environmental and climate change concerns, the increasing spending pattern especially by the growing middle class population will help the industry to grow in a big way. With increased demand for quality products, enzymatic solutions especially in food segment, detergents and textile, are going to see a significant growth. Bioenergy segment will also be playing an important role in the next 2-3 years for the growth of this segment in India.
We expect the food regulatory process to be more industry friendly and in line with international standards which would help to facilitate launch of new innovative products in India faster, in line with the rest of the world.