In this study, the removal of phenol using immobilized soybean seed hull peroxidase was investigated. The soybean peroxidase (SBP) enzymes were extracted from the raw soybean seed hulls and entrapped within hybrid (silica sol-gel/alginate) particles. An aqueous sol-gel route was preferred over an alkoxide route to prepare the silica sol-gel suspension. A cluster of nozzles was designed for the bulk production of the biocatalysts. Upto 85% phenol was polymerized using the fabricated biocatalysts under the optimized conditions. Viability studies and repeated application/regeneration of entrapped enzymes were carried out. Surface conditions and the pore structure of the particles were studied using SEM before the reaction and after the reaction. The study indicates that these particles are promising biocatalysts for fluidized bed or packed bed reactors. This study represents the first investigation of enzymatic reactions that form a coating on the immobilized biocatalyst.