Central Asia's Vast Biofuel Opportunity
The current revelations of a International Energy Administration whistleblower that the IEA may have misshaped crucial oil forecasts under intense U.S. pressure is, if true (and whistleblowers rarely come forward to advance their professions), a slow-burning atomic surge on future international oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decline from existing oil fields while overplaying the chances of discovering new reserves have the potential to throw governments' long-lasting preparation into turmoil.
Whatever the reality, rising long term worldwide needs seem certain to outstrip production in the next decade, specifically given 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 require billions in investments before their very first barrels of oil are produced.
In such a circumstance, additives and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising rates drive this innovation to the forefront, one of the richest prospective production areas has been totally neglected by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a major player in the production of biofuels if sufficient foreign financial investment can be acquired. Unlike Brazil, where biofuel is made mainly 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 due to the fact that of record-high energy costs, while Turkmenistan is waiting in the wings as a rising manufacturer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly scant hydrocarbon resources relative to their Western Caspian neighbors have mainly inhibited their ability to cash in on rising global energy demands already. Mountainous Kyrgyzstan and Tajikistan remain mostly reliant for their electrical needs on their Soviet-era hydroelectric infrastructure, however their heightened need to generate winter electrical energy has resulted in autumnal and winter water discharges, in turn severely impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream countries do have nevertheless is a Soviet-era tradition 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 become a significant producer of wheat. Based upon my discussions with Central Asian federal government authorities, given the thirsty needs of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lower extent Astana for those sturdy investors going 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 false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is drawing in increased clinical interest for its oleaginous qualities, with numerous European and American companies already examining how to produce it in business amounts for biofuel. In January Japan Airlines undertook a historical test flight using camelina-based bio-jet fuel, ending up being the very first Asian provider to explore flying on fuel derived 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 operational efficiency ability and potential commercial viability.
As an alternative energy source, camelina has much to recommend 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 specific interest in Kazakhstan, now Central Asia's major wheat exporter. Another bonus 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 load (1000 kg) of camelina will consist of 350 kg of oil, of which pressing can extract 250 kg. Nothing in 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 fats that make it an especially fine livestock feed prospect that is just now getting 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 established. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could be a perfect low-input crop ideal 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 centuries to produce both veggie oil and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research, showed a large range 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 problems in germination to achieve an optimum plant density of around 9 plants per sq. ft.
Camelina's capacity could enable Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has warped the nation's attempts at agrarian reform given that attaining self-reliance in 1991. Beginning in the late 19th century, the Russian federal government identified that Central Asia would become its cotton plantation to feed Moscow's growing textile industry. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise ordered by Moscow to plant cotton, Uzbekistan in particular was singled out to produce "white gold."
By the end of the 1930s the Soviet Union had actually ended up being self-dependent in cotton; 5 decades later it had actually ended up being a significant 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 remains wedded to cotton, producing about 3.6 million heaps every year, which generates more than $1 billion while constituting approximately 60 percent of the nation's hard currency income.
Beginning in the mid-1960s the Soviet federal government's directives for Central Asian cotton production mainly bankrupted the area's scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet organizers to divert ever-increasing volumes of water from the area's 2 main rivers, the Amu Darya and Syr Darya, into ineffective irrigation canals, leading to the dramatic shrinking of the rivers' final destination, the Aral Sea. The Aral, when the world's fourth-largest inland sea with an area of 26,000 square miles, has actually shrunk to one-quarter its initial 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 bring in $224 per acre; 28-bushel white wheat at $8.23 per bushel would amass $230."
Central Asia has the land, the farms, the irrigation facilities and a modest wage scale in contrast to America or Europe - all that's missing is the foreign investment. U.S. investors have the money and access to the knowledge of America's land grant universities. What is certain is that biofuel's market share will grow over time; less particular is who will profit of developing it as a practical issue in Central Asia.
If the current past is anything to go by it is unlikely to be American and European financiers, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments show Asian interest, American financiers have the academic knowledge, if they want to follow the Silk Road into establishing a new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will receive most careful factor to consider from Central Asia's governments, and farming and veggie oil processing plants are not just more affordable than pipelines, they can be built quicker.
And jatropha curcas's biofuel capacity? Another story for another time.