Central Asia's Vast Biofuel Opportunity
The current revelations of a International Energy Administration whistleblower that the IEA may have misshaped key oil forecasts under intense U.S. pressure is, if real (and whistleblowers hardly ever come forward to advance their careers), a slow-burning thermonuclear surge on future worldwide oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decrease from existing oil fields while overplaying the possibilities of discovering brand-new reserves have the potential to toss federal governments' long-term preparation into chaos.
Whatever the reality, increasing long term international demands seem certain to outstrip production in the next decade, specifically provided the high and increasing expenses of establishing brand-new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in financial investments before their first barrels of oil are produced.
In such a circumstance, ingredients and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising prices drive this innovation to the leading edge, one of the richest prospective production areas has been absolutely neglected by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a significant gamer in the production of biofuels if enough foreign investment can be acquired. Unlike Brazil, where biofuel is produced mostly from sugarcane, or the United States, where it is mostly distilled from corn, Central Asia's ace resource is an indigenous plant, Camelina sativa.
Of the previous Soviet Caucasian and Central Asian republics, those clustered around the shores of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom since of record-high energy prices, while Turkmenistan is waiting in the wings as an increasing producer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly scant hydrocarbon resources relative to their Western Caspian next-door neighbors have actually largely hindered their capability to capitalize rising worldwide energy demands already. Mountainous Kyrgyzstan and Tajikistan stay mainly dependent for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their increased need to create winter season electrical energy has led to autumnal and winter water discharges, in turn seriously impacting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream countries do have however is a Soviet-era legacy of farming 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 ended up being a significant manufacturer of wheat. Based upon my conversations with Central Asian federal government authorities, offered the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have excellent appeal in Astana, Ashgabat and Tashkent and to a lesser level Astana for those durable financiers willing to wager on the future, specifically as a plant indigenous to the region has actually already proven itself in trials.
Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased clinical interest for its oleaginous qualities, with numerous European and American companies already examining how to produce it in industrial quantities for biofuel. In January Japan Airlines undertook a historical test flight utilizing camelina-based bio-jet fuel, ending up being the very first Asian provider to try out flying on fuel obtained from sustainable feedstocks during a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month evaluation of camelina's functional efficiency capability and potential industrial viability.
As an alternative energy source, camelina has much to suggest it. It has a high oil material low in saturated fat. In contrast to Central Asia's thirsty "king cotton," camelina is drought-resistant and unsusceptible to spring freezing, needs less fertilizer and herbicides, and can be used 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 as much as 100 gallons of oil and when planted in rotation with wheat, camelina can increase wheat production by 15 percent. A lot (1000 kg) of will contain 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's debris can be used for livestock silage. Camelina silage has an especially attractive concentration of omega-3 fatty acids that make it an especially great livestock feed candidate that is simply now acquiring recognition in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and competes well against weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina might be a perfect 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 household, is indigenous to both Europe and Central Asia and hardly a brand-new crop on the scene: archaeological proof indicates it has been cultivated in Europe for a minimum of three millennia to produce both vegetable oil and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research, showed a wide variety of outcomes of 330-1,700 lbs of seed per acre, with oil material differing between 29 and 40%. Optimal seeding rates have been figured out to be in the 6-8 pound per acre range, as the seeds' small size of 400,000 seeds per pound can develop issues in germination to achieve an ideal plant density of around 9 plants per sq. ft.
Camelina's potential might permit Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the country's efforts at agrarian reform since accomplishing independence in 1991. Beginning in the late 19th century, the Russian government identified 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 ordered by Moscow to sow cotton, Uzbekistan in particular was singled out to produce "white gold."
By the end of the 1930s the Soviet Union had actually become self-dependent in cotton; five years later it had become a major exporter of cotton, producing more than one-fifth of the world's production, concentrated 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 heaps every year, which brings in more than $1 billion while making up around 60 percent of the nation's hard cash income.
Beginning in the mid-1960s the Soviet federal government's directives for Central Asian cotton production mostly bankrupted the area's scarcest resource, water. Cotton utilizes about 3.5 acre feet of water per acre of plants, leading Soviet organizers to divert ever-increasing volumes of water from the region's 2 main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, resulting in the significant shrinkage of the rivers' final location, the Aral Sea. The Aral, when the world's fourth-largest inland sea with an area of 26,000 square miles, has shrunk to one-quarter its original size in among the 20th century's worst eco-friendly disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's company 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 garner $230."
Central Asia has the land, the farms, the irrigation facilities and a modest wage scale in comparison to America or Europe - all that's missing out on is the foreign financial investment. U.S. financiers have the cash and access to the knowledge of America's land grant universities. What is particular is that biofuel's market share will grow in time; less particular is who will profit of developing it as a feasible issue in Central Asia.
If the recent past is anything to pass it is unlikely to be American and European investors, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments show Asian interest, American investors have the academic know-how, if they want to follow the Silk Road into establishing a brand-new market. Certainly anything that lessens water use and pesticides, diversifies crop production and improves the great deal of their agrarian population will receive most careful consideration from Central Asia's federal governments, and farming and grease processing plants are not just much more affordable than pipelines, they can be constructed faster.
And jatropha's biofuel potential? Another story for another time.