Biotransformation is a powerful tool for obtaining valuable products in industrial processes [
1,
2].The most impressive advantage of biotransformation over other traditional synthesis techniques is the respective enzyme's selectivity, which enantiomerically generates pure products and reduces the cost of purification. In the biotransformation reaction, purified enzymes or whole microbial cells can accomplish the reduction, oxidation, isomerization, and hydroxylation of natural products to produce novel derivatives. This process is mild, less expensive and doesn't use toxic reagents or solvents, making it environmentally friendly [
3,
4,
5]. Chemical catalysis shows too less potent beneficial effect due to the production of toxic byproducts and required unfavorable and undesirable extreme conditions [
6] Specifically, whole-cell biocatalysts are more industrially favorable for the production of chiral alcohols than purified enzymes [
7]. The whole cell's confined environment contains the enzymes and required cofactors such as NADH/NADPH. However, the whole cells regenerate the cofactors, but need to be added to the pure enzyme for the continuation of biotransformation process, which is quite expensive. [
8,
9,
10]. Thus, whole-cell biocatalysts were considered a kind of robust and most effective way for the biocatalytic production of challenging and fine chemicals [
11]. Various organisms were used to carry out the biotransformation of different natural compounds [
12]. In all of them, the microbial system is more significant because of the short doubling time of biomass and can be genetically modified through well-defined techniques [
13].
However, for the successful biotransformation process, the screening of microorganisms is a key step as they widen the chances of drug discovery from the industrial valuable natural products, such as phenazines compounds. Phenazines are three-ringed nitrogen-containing secreted metabolites found in environmental, industrial and clinical settings. The precursor metabolite of mostly phenazine derivatives in
Pseudomonas spis phenazine-1-carboxylic acid (PCA; C
13H
8N
2O
2) and already showed great application in the agriculture sector to control various fungal diseases [
14,
15,
16,
17]. Hence, the physiological function, biosynthesis and regulation of PCA are well understood, but its nature of microbial biotransformation is largely unknown. The biotransformation and modification of phenazine compounds are deemed risky and make agricultural settings susceptible to various diseases. Thus, the precursor metabolite PCA is the target of various studies to screen and identify the microbes capable of its biotransformation. Fortunately, different bacterial strains have been reported and identified that can transform PCA by growing cells such as
Sphingomonas sDP58 [
18,
19],
Nocardia sLAM0056 and
Rhodococcus sJVH1,
Mycobacterium sDNK1213,
Mycobacterium sCT6 and
Mycobacterium sATCC6841[
20,
21]. In addition to bacterial biotransformation, some studies demonstrated PCA modification by growing cells of filamentous fungi [
22,
23]. However, the derivatives of PCA portrayed more specific antimicrobial activities than the parental compound which encourages us to isolate and identify filamentous fungus strain that are capable of PCA modification with unique functional features [
24]. In green chemistry, filamentous fungus is considered an effective microorganism due to their excellent efficiency in conducting biotransformation of various substrates [
25]. The previous study explored that, the strain
Aspergillus sclerotiorum CBMAI 849 act as a whole cell biocatalyst and modify the potent antioxidant 2-hydroxychalcone into hydroxydihydrochalcone [
26]. In addition, the 2,5-furandicarboxylic acid (FDCA) is an important bio-based source for biodegradable polyesters production and identified as a top opportunity for the chemical industry in the future by US Department of energy (US DOE) [
27]. Thus, the precursor metabolite 5-hydroxymethyl furfural (HMF) oxidized by filamentous fungus strains
A. flavus and
A. niger (NRRL 567) and produce 2,5-furandicarboxylic acid (FDCA) [
28]. According to the best of our knowledge, there is no report regarding the whole cells biocatalysis of PCA by filamentous fungus
Aspergillus sclerotiorum. The present study aims to explore the potential of
Aspergillus sclerotiorum as a biotransformation agent for the production of 3-hydroxy phenazine 1-carboxylic acid (3-OH-PCA) through whole-cell biotransformation of PCA. The fungus strain was initially identified from red spots that appeared as a contaminant in the cultured plate of PCA-producing bacterial strain
chlororaphis GP72. The study subsequently screened favorable carbon sources for the production of
Aspergillus sclerotiorum pellets and optimized the physicochemical parameters to construct an efficient whole-cell biocatalysis system for the production of 3-OH-PCA. Furthermore, the biocatalytic potential of the fungal pellets was explored in cycling mode in the fed-batch fermentation. These findings contribute to the knowledge that the strain
Aspergillus sclerotiorum displays the potential to become a significant biotransformation agent. In the future, this research could lead to the development of more efficient and sustainable biotransformation processes that utilize fungal strains for the production of valuable metabolites.