Central Asia's Vast Biofuel Opportunity
The current discoveries of a International Energy Administration whistleblower that the IEA might have distorted key oil forecasts under intense U.S. pressure is, if real (and whistleblowers seldom 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 new reserves have the potential to toss governments' long-lasting preparation into mayhem.
Whatever the reality, rising long term international demands appear specific to outstrip production in the next decade, specifically given the high and increasing expenses of developing new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will require billions in investments before their first barrels of oil are produced.
In such a circumstance, ingredients and replacements such as biofuels will play an ever-increasing role by stretching beleaguered production quotas. As market forces and rising costs drive this technology to the leading edge, among the wealthiest prospective production locations has actually been absolutely overlooked by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a significant gamer in the production of biofuels if enough foreign investment can be obtained. Unlike Brazil, where biofuel is made largely from sugarcane, or the United States, where it is primarily 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 coasts of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom since of record-high energy rates, while Turkmenistan is waiting in the wings as an increasing manufacturer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly little hydrocarbon resources relative to their Western Caspian neighbors have actually largely inhibited their capability to capitalize rising international energy needs up to now. Mountainous Kyrgyzstan and Tajikistan stay mostly reliant for their electrical needs on their Soviet-era hydroelectric infrastructure, however their heightened requirement to create winter electricity has resulted in autumnal and winter water discharges, in turn seriously affecting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream nations do have however is a Soviet-era tradition of agricultural production, which in Uzbekistan's and Turkmenistan case was largely directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev's "Virgin Lands" programs, has actually ended up being a major producer of wheat. Based on my discussions with Central Asian federal government authorities, provided the thirsty demands of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lower extent Astana for those hardy investors happy to bet on the future, particularly as a plant indigenous to the area has already proven itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased scientific interest for its oleaginous qualities, with numerous European and American companies already examining how to produce it in business quantities 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 experiment with flying on fuel stemmed from sustainable feedstocks throughout a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month examination of camelina's operational efficiency ability and prospective commercial practicality.
As an alternative energy source, camelina has much to advise 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 immune to spring freezing, requires 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 bonus of camelina is its tolerance of poorer, less fertile conditions. An acre planted 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 camelina will contain 350 kg of oil, of which pushing can extract 250 kg. Nothing in camelina production is lost as after processing, the plant's debris can be used for livestock silage. Camelina silage has an especially appealing of omega-3 fats that make it an especially great livestock feed prospect that is recently 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 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 native to both Europe and Central Asia and hardly a new crop on the scene: historical evidence suggests it has actually been cultivated in Europe for a minimum of three centuries to produce both grease and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research, showed a wide variety of results of 330-1,700 lbs of seed per acre, with oil content varying in between 29 and 40%. Optimal seeding rates have actually been determined to be in the 6-8 pound per acre variety, as the seeds' little size of 400,000 seeds per lb can produce problems in germination to attain an optimum plant density of around 9 plants per sq. ft.
Camelina's potential could permit Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the nation's attempts at agrarian reform because accomplishing 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 fabric market. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also 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 become self-sufficient in cotton; 5 years later on it had become 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 might to diversify, in the absence of options Tashkent remains wedded to cotton, producing about 3.6 million loads annually, which brings in more than $1 billion while making up approximately 60 percent of the country's difficult currency income.
Beginning in the mid-1960s the Soviet government's directives for Central Asian cotton production largely bankrupted the area's scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet coordinators to divert ever-increasing volumes of water from the region's 2 primary rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, leading to the dramatic shrinking of the rivers' last destination, the Aral Sea. The Aral, as soon as the world's fourth-largest inland sea with a location of 26,000 square miles, has actually diminished to one-quarter its initial size in one of the 20th century's worst ecological disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently explained 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 amass $230."
Central Asia has the land, the farms, the irrigation infrastructure and a modest wage scale in contrast to America or Europe - all that's missing is the foreign investment. U.S. investors 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 over time; less certain is who will profit of establishing it as a viable issue in Central Asia.
If the current past is anything to go by it is unlikely to be American and European investors, focused as they are on Caspian oil and gas.
But while the Japanese flight experiments show Asian interest, American investors have the academic proficiency, if they are prepared to follow the Silk Road into establishing a new market. Certainly anything that decreases water use and pesticides, diversifies crop production and improves the great deal of their agrarian population will get most careful factor to consider from Central Asia's governments, and farming and grease processing plants are not just much less expensive than pipelines, they can be built faster.
And jatropha's biofuel potential? Another story for another time.