Central Asia's Vast Biofuel Opportunity
The recent discoveries of a International Energy Administration whistleblower that the IEA might have distorted crucial oil forecasts under intense U.S. pressure is, if real (and whistleblowers hardly ever come forward to advance their professions), a slow-burning atomic surge on future international oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decrease from existing oil fields while overplaying the chances of discovering brand-new reserves have the possible to toss federal governments' long-lasting planning into turmoil.
Whatever the truth, increasing long term worldwide demands appear certain to overtake production in the next decade, especially offered the high and increasing costs of developing brand-new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in financial investments before their very first barrels of oil are produced.
In such a situation, additives and replacements such as biofuels will play an ever-increasing role by extending beleaguered production quotas. As market forces and increasing prices drive this technology to the leading edge, among the richest prospective production locations has actually been absolutely ignored by investors already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a major player in the production of biofuels if sufficient foreign financial investment can be obtained. Unlike Brazil, where biofuel is made mostly from sugarcane, or the United States, where it is mainly distilled from corn, Central Asia's ace resource is a native plant, Camelina sativa.
Of the previous Soviet Caucasian and Central Asian republics, those clustered around the coasts of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom due to the fact that of record-high energy costs, while Turkmenistan is waiting in the wings as an increasing producer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and reasonably scant hydrocarbon resources relative to their Western Caspian have mainly inhibited their ability to capitalize rising worldwide energy demands up to now. Mountainous Kyrgyzstan and Tajikistan stay largely dependent for their electrical requirements on their Soviet-era hydroelectric facilities, however their increased need to create winter season electrical energy has caused autumnal and winter water discharges, in turn severely impacting the agriculture of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream nations do have however is a Soviet-era legacy of agricultural production, which in Uzbekistan's and Turkmenistan case was largely directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has become a significant manufacturer of wheat. Based upon my discussions with Central Asian federal government officials, given the thirsty needs of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser degree Astana for those hardy investors going to wager on the future, especially as a plant indigenous to the region has already shown itself in trials.
Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased scientific interest for its oleaginous qualities, with a number of European and American business currently examining how to produce it in business quantities for biofuel. In January Japan Airlines undertook a historical test flight utilizing camelina-based bio-jet fuel, ending up being the first Asian carrier to experiment with flying on fuel originated from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month assessment of camelina's functional efficiency capability and prospective industrial practicality.
As an alternative energy source, camelina has much to advise it. It has a high oil content low in hydrogenated fat. In contrast to Central Asia's thirsty "king cotton," camelina is drought-resistant and immune to spring freezing, requires less fertilizer and herbicides, and can be utilized as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's major wheat exporter. Another perk of camelina is its tolerance of poorer, less fertile conditions. An acre sown with camelina can produce approximately 100 gallons of oil and when planted in rotation with wheat, camelina can increase wheat production by 15 percent. A heap (1000 kg) of camelina will consist of 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is lost as after processing, the plant's debris can be used for animals silage. Camelina silage has an especially attractive concentration of omega-3 fatty acids that make it a particularly great animals feed prospect that is just now getting acknowledgment in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and completes well versus weeds when an even crop is established. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina might be an ideal low-input crop appropriate for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape."
Camelina, a branch of the mustard family, is native to both Europe and Central Asia and barely a new crop on the scene: archaeological evidence suggests it has actually been cultivated in Europe for a minimum of three millennia to produce both grease and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research study, showed a wide variety of outcomes of 330-1,700 pounds of seed per acre, with oil content varying in between 29 and 40%. Optimal seeding rates have been determined to be in the 6-8 pound per acre variety, as the seeds' little size of 400,000 seeds per pound can produce issues in germination to accomplish an optimum plant density of around 9 plants per sq. ft.
Camelina's capacity might enable Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has warped the nation's attempts at agrarian reform since attaining self-reliance in 1991. Beginning in the late 19th century, the Russian government figured out that Central Asia would become its cotton plantation to feed Moscow's growing textile market. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise purchased by Moscow to plant cotton, Uzbekistan in specific was singled out to produce "white gold."
By the end of the 1930s the Soviet Union had ended up being self-dependent in cotton; five years later on it had become a major exporter of cotton, producing more than one-fifth of the world's production, focused in Uzbekistan, which produced 70 percent of the Soviet Union's output.
Try as it may to diversify, in the absence of options Tashkent stays wedded to cotton, producing about 3.6 million lots yearly, which brings in more than $1 billion while constituting approximately 60 percent of the country's tough currency earnings.
Beginning in the mid-1960s the Soviet federal government's instructions for Central Asian cotton production mainly bankrupted the area's scarcest resource, water. Cotton utilizes about 3.5 acre feet of water per acre of plants, leading Soviet planners to divert ever-increasing volumes of water from the region's two main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, leading to the remarkable shrinking of the rivers' final destination, the Aral Sea. The Aral, when the world's fourth-largest inland sea with a location of 26,000 square miles, has actually shrunk to one-quarter its original size in among the 20th century's worst eco-friendly catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's organization model to Capital Press as: "At 1,400 pounds per acre at 16 cents a pound, camelina would generate $224 per acre; 28-bushel white wheat at $8.23 per bushel would gather $230."
Central Asia has the land, the farms, the watering facilities and a modest wage scale in comparison to America or Europe - all that's missing is the foreign financial investment. U.S. investors have the money and access to the know-how of America's land grant universities. What is specific is that biofuel's market share will grow over time; less certain is who will gain the benefits of developing it as a feasible concern in Central Asia.
If the recent past is anything to pass it is unlikely to be American and European financiers, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments suggest Asian interest, American financiers have the academic know-how, if they are ready to follow the Silk Road into developing a new market. Certainly anything that minimizes water usage and pesticides, diversifies crop production and improves the great deal of their agrarian population will get most cautious factor to consider from Central Asia's governments, and farming and veggie oil processing plants are not only more affordable than pipelines, they can be developed faster.
And jatropha's biofuel capacity? Another story for another time.