Expert Speak Raisina Debates
Published on Feb 11, 2026

India’s blue economy ambitions hinge not on scaling marine bioproducts alone, but on transitioning to chemical-free processing pathways that deliver genuine environmental, economic, and climate gains

Chemical-Free Processing for a Sustainable Blue Economy in India

Marine biomass, such as microalgae, macroalgae, and fisheries residues, is being increasingly promoted as a renewable feedstock for the sustainable generation of high-value bioproducts and biofuels, addressing both climate change and socio-economic development. Marine biomass cultivation does not require agricultural land or freshwater and shows higher productivity than land-based crops. With more than 99 percent of global seaweed production, expected to reach US$85 million by 2026, concentrated in Asia, India can leverage its vast marine biomass potential to achieve its blue economy goals.

To ensure circularity and enhance climate gains and local economic benefits, it is necessary to integrate low-chemical or chemical-free processing pathways into these frameworks to establish truly sustainable marine biorefineries aligned with India’s National Biofuel Policy and Blue Economy strategies.

India’s blue economy strategies often prioritise the scaling up of value-added products from marine biomass, equating it with sustainable production. However, the sustainability outcomes of marine value chains are driven less by the products themselves and more by the processing methods used to manufacture them. Extraction processes account for the majority of sustainability challenges due to chemical-based extraction involving strong acids, alkalis, and organic solvents; high freshwater use; and toxic effluents, requiring energy-intensive, expensive downstream purification steps. Without clear policy guidelines, standards, and monitoring, blue economy initiatives thus risk the proliferation of unsustainable practices camouflaged as green labelling. To ensure circularity and enhance climate gains and local economic benefits, it is necessary to integrate low-chemical or chemical-free processing pathways into these frameworks to establish truly sustainable marine biorefineries aligned with India’s National Biofuel Policy and Blue Economy strategies.

Why is Chemical-free Processing Key to Policy Outcomes?

For the extraction of any biochemicals or bioproducts, the biomass must first undergo processing, or pretreatment, to break down its rigid structure and gain access to its components. Pretreatment and extraction processes account for a major share of the economic and environmental footprint of marine bioproduct production costs. For instance, in seaweed value addition, chemical processing hinders scale-up as it contributes approximately 40 percent of the overall production cost while generating harmful acidic or alkaline effluents as part of the pre-discharge treatment requirements. These challenges, compounded by India’s reliance on wild-harvested, low-cost seaweed (INR 15–30/kg), lead to inconsistent feedstock composition—marked by wide variations in sugar (15–60 percent) and ash (20–40 percent) content—alongside contamination and uneven maturity, thereby constraining scalable processing.

Global best practices indicate that chemical-free processing can offer viable pathways to overcome the economic, environmental, and feedstock-related constraints facing marine bioproduct manufacturing. For example, Cyanotech, a Hawai’i-based microalgae company, uses chemical-free extraction to produce high-quality spirulina and astaxanthin, while meeting international regulatory and sustainability standards. Likewise, Australia’s Marinova Pvt. Ltd. uses a chemical-free extraction process to obtain high-purity biochemicals from seaweed, earning the company European Union (EU) organic certification, access to more than 35 international markets, and low environmental impacts. Ocean Harvest Technology, a UK-based company, similarly produces value-added products from seaweed biomass without the use of any chemical agents or solvents for extraction. Partnering with coastal communities in Asia and Europe, the company not only facilitates steady income but also minimises environmental impacts and increases product competitiveness and market value.

Global best practices indicate that chemical-free processing can offer viable pathways to overcome the economic, environmental, and feedstock-related constraints facing marine bioproduct manufacturing.

These examples indicate that transitioning towards chemical-free processing yields multiple public and system-level benefits, including reduced environmental impacts, reduced greenhouse gas emissions, climate mitigation, lower freshwater use, reduced compliance costs, improved alignment with environmental social governance (ESG) standards, and the creation of new employment opportunities for coastal communities through decentralised value chains. However, despite their significant environmental burden, India continues to rely on conventional chemical extraction processes, mainly due to outdated infrastructure, established industry norms, and low capital investment costs.

Chemical-free Processing Approaches and Their System-level Benefits

Chemical-free processing solutions must be explored as strategic pathways to build sustainable, environmentally friendly industrial infrastructure, rather than as isolated technologies. Key approaches include mechanical, thermal/hydrothermal, enzyme-assisted and microbial processing. These methods are known to retain biomolecule functionality and reduce wastewater generation by up to 70 percent compared to chemical extractions. These small-scale, low-infrastructure operations can also be easily decentralised, lowering logistical expenses and strengthening local value chains. Techniques such as hydrothermal liquefaction (HTL) and microbial processing do not require freshwater, making them suitable for water-stressed regions.

Indian companies such as Sea6Energy, supported by HPCL, have successfully applied the hydrothermal conversion to produce carbon-neutral fuels, contributing to national biofuel and climate goals. A comparison with life-cycle analysis of other processing methods indicates that microbial fermentation pathways can reduce carbon dioxide emissions by up to 50 percent. Enzyme-based processing enables the production of integrated multiproduct biorefineries, generating multiple value-added products from a single biomass source at mild temperatures and pH, reducing both energy intensity and downstream waste treatment requirements.

Key approaches include mechanical, thermal/hydrothermal, enzyme-assisted and microbial processing. These methods are known to retain biomolecule functionality and reduce wastewater generation by up to 70 percent compared to chemical extractions.

The adoption of chemical-free processing approaches can provide substantial governance advantages. Reducing effluent load lowers infrastructure requirements for effluent treatment and simplifies regulatory compliance and monitoring requirements. These pathways also align with the emerging environmental and trade regulations and ESG frameworks, strengthening India’s position in the global bioproduct market.

Policy Recommendations

Marine biomass processing can be included as part of green industrial clusters in coastal districts, alongside manufacturing and other logistics, aligning with India’s goals for Micro, Small and Medium Enterprises (MSMEs) and coastal economy development.

Achieving tangible outcomes will require integrating chemical-free processing into coordinated policy action across multiple ministries and initiatives, prioritising the following factors.

  • Infrastructure development: Establish regional pilot-scale facilities that employ chemical-free processing methods in coastal regions such as Odisha, Tamil Nadu, and Gujarat, through coordinated efforts by the Ministry of Earth Sciences (MoES) and the Ministry of Environment, Forests and Climate Change (MoEFCC).

    Support cold-chain and biomass-drying infrastructure, maritime transport infrastructure, reduce storage, and maintain feedstock integrity for sustainable downstream processing. For instance, the United Kingdom’s 

    The recent EU funding for projects on sustainable algae cultivation as part of its blue economy initiatives can be used to facilitate such coordinated efforts.
  • Incentivise chemical-free processing: Provide targeted financial incentives, research grants, and tax benefits for chemical-free processing techniques to accelerate market entry and commercialisation. The government must incentivise the Ministry of MSME’s support schemes, similar to the EU’s Maritime, Fisheries, and Aquaculture Fund (EMFAF). Further, the Ministry of Earth Sciences (MoES) and the Ministry of Environment, Forest and Climate Change (MoEFCC) can provide sustainability certification for products involving chemical-free or low-chemical green processing. Financial incentives should be provided to small- and medium-scale processing and biomass value-addition units to reduce transport costs and generate employment among coastal communities. These initiatives can be integrated with port-led development programmes, such as Sagarmala, to develop coastal green industrial clusters and strengthen the coastal value chain. For example, Norway-based Algavo designs decentralised biorefinery models that can be established near local coastal biomass sources, lowering transport costs and encouraging local community involvement.
  • Sustainability Standards and Certifications: Adopt sustainability standards and certifications to differentiate sustainably produced products from chemically processed products, thereby enhancing their marketability. The EU’s marine innovation programmes and blue economy observatory lay out criteria for sustainability and environmental assessments to differentiate products that are made using chemical-free methods. Marine biomass processing and biorefineries should be positioned within national industrial and climate policies, particularly those led by MoEFCC, to highlight their contribution to carbon sequestration through the promotion of chemical-free processing. For instance, the European Bioeconomy Strategy embeds sustainable blue bioeconomy initiatives, such as marine biomass value addition, within broader climate and industrial development goals. 
  • Public-Private Partnerships: Partnership and collaboration amongst research institutions, industries, governmental and non-governmental organisations to advance research for the implementation of chemical-free processing technologies and reduce dependency on imported biomass and chemicals. This can be achieved with initiatives and coordinated efforts by government departments such as the Department of Biotechnology (DBT) and the Department of Science and Technology (DST).

Conclusion

To build a truly sustainable blue bioeconomy, India should adopt chemical-free processing methods for the extraction of high-value marine bioproducts at scale alongside circular blue economy pathways. Through collaborative efforts, strengthening research and development, providing financial incentives, and enabling market entry, India can minimise environmental impact, strengthen local economies, and establish itself as a global leader in marine bioproducts.


Poornima V B is a Research Assistant at the Observer Research Foundation.

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