Central Asia's Vast Biofuel Opportunity

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The recent discoveries of a International Energy Administration whistleblower that the IEA may have distorted key oil forecasts under intense U.S.

The recent revelations of a International Energy Administration whistleblower that the IEA might have distorted crucial oil projections under intense U.S. pressure is, if real (and whistleblowers rarely come forward to advance their careers), a slow-burning atomic surge on future global 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 finding brand-new reserves have the potential to throw governments' long-term planning into mayhem.


Whatever the truth, increasing long term international needs appear specific to outstrip production in the next decade, specifically offered the high and increasing costs of establishing new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will require billions in financial investments before their first barrels of oil are produced.


In such a scenario, ingredients and replacements such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and rising prices drive this innovation to the forefront, among the wealthiest potential production areas has been absolutely ignored by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a significant player in the production of biofuels if adequate foreign financial investment can be acquired. Unlike Brazil, where biofuel is made mostly 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 shores of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom because of record-high energy rates, while Turkmenistan is waiting in the wings as an increasing manufacturer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly little hydrocarbon resources relative to their Western Caspian neighbors have actually mainly hindered their capability to capitalize rising international energy demands already. Mountainous Kyrgyzstan and Tajikistan stay mainly reliant for their electrical requirements on their Soviet-era hydroelectric infrastructure, however their increased requirement to generate winter season electrical power has caused autumnal and winter water discharges, in turn severely impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream nations do have nevertheless is a Soviet-era legacy of agricultural production, which in Uzbekistan's and Turkmenistan case was mostly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a significant manufacturer of wheat. Based upon my discussions with Central Asian government authorities, given 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 investors happy to bet on the future, specifically as a plant indigenous to the region has actually already shown 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 several European and American business currently investigating how to produce it in business amounts for biofuel. In January Japan Airlines carried out a historical test flight using camelina-based bio-jet fuel, becoming the very first Asian provider to try out 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 functional performance ability and potential commercial viability.


As an alternative energy source, camelina has much to recommend it. It has a high oil content 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 utilized as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's major wheat exporter. Another benefit 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 ton (1000 kg) of camelina will contain 350 kg of oil, of which pushing can draw out 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 attractive concentration of omega-3 fats that make it a particularly fine animals feed prospect that is simply now getting acknowledgment in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and contends 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 barely a brand-new crop on the scene: archaeological evidence indicates it has been cultivated in Europe for a minimum of 3 centuries to produce both grease and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research study, showed a large range of results of 330-1,700 lbs of seed per acre, with oil material differing in between 29 and 40%. Optimal seeding rates have actually been figured out to be in the 6-8 pound per acre variety, as the seeds' small size of 400,000 seeds per lb can develop issues in germination to attain an optimum plant density of around 9 plants per sq. ft.


Camelina's capacity could enable Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the nation's attempts at agrarian reform because achieving independence 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 industry. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also bought 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 actually ended up being self-dependent in cotton; 5 years later on it had actually become a significant 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 might to diversify, in the absence of alternatives Tashkent remains wedded to cotton, producing about 3.6 million loads every year, which brings in more than $1 billion while making up around 60 percent of the country's difficult currency income.


Beginning in the mid-1960s the Soviet government's regulations for Central Asian cotton production mainly bankrupted the region'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 region's 2 main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, resulting in the significant shrinkage of the rivers' final location, the Aral Sea. The Aral, as soon as the world's fourth-largest inland sea with an area of 26,000 square miles, has shrunk to one-quarter its initial 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 service 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 irrigation facilities and a modest wage scale in comparison to America or Europe - all that's missing out on is the foreign investment. U.S. investors have the money and access to the know-how of America's land grant universities. What is certain is that biofuel's market share will grow over time; less specific is who will enjoy the advantages of establishing it as a feasible 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 indicate Asian interest, American financiers have the scholastic proficiency, if they are prepared to follow the Silk Road into establishing a brand-new market. Certainly anything that minimizes water usage and pesticides, diversifies crop production and improves the great deal of their agrarian population will receive most cautious factor to consider from Central Asia's federal governments, and farming and vegetable oil processing plants are not just much more affordable than pipelines, they can be built quicker.


And jatropha's biofuel capacity? Another story for another time.

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