Central Asia's Vast Biofuel Opportunity
The current discoveries of a International Energy Administration whistleblower that the IEA might have distorted essential oil projections under intense U.S. pressure is, if real (and whistleblowers hardly ever come forward to advance their professions), a slow-burning thermonuclear explosion 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 possibilities of discovering brand-new reserves have the prospective to throw federal governments' long-term preparation into chaos.
Whatever the truth, rising long term worldwide demands appear specific to outstrip production in the next years, especially offered the high and increasing costs 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 situation, additives and replacements such as biofuels will play an ever-increasing role by extending beleaguered production quotas. As market forces and rising rates drive this innovation to the forefront, one of the wealthiest possible production locations has actually been totally neglected by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a major gamer in the production of biofuels if enough foreign investment can be procured. 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 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 costs, 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 relatively scant hydrocarbon resources relative to their Western Caspian next-door neighbors have largely hindered their capability to money in on 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 heightened need to produce winter electricity has actually led to autumnal and winter season 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 mostly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a significant producer of wheat. Based upon my discussions with Central Asian federal government officials, provided the thirsty needs of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lower level Astana for those sturdy investors ready to bank on the future, particularly as a plant indigenous to the area 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 drawing in increased scientific interest for its oleaginous qualities, with several European and American companies currently examining how to produce it in business amounts for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, becoming the first Asian carrier to explore flying on fuel obtained from sustainable feedstocks throughout 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 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 utilized as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's significant wheat exporter. Another bonus offer 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 camelina will include 350 kg of oil, of which pushing can draw out 250 kg. Nothing in camelina production is squandered as after processing, the plant's particles can be used for animals silage. Camelina silage has an especially attractive concentration of omega-3 fats that make it a particularly fine livestock feed candidate that is just now getting recognition in the U.S. and Canada. Camelina is fast 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 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 brand-new crop on the scene: historical proof indicates it has been cultivated in Europe for at least three millennia to produce both grease and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research, revealed a broad 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 actually been determined to be in the 6-8 lb per acre range, as the seeds' small size of 400,000 seeds per lb can create issues in germination to attain an optimum plant density of around 9 plants per sq. ft.
could permit Uzbekistan to begin breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has distorted the nation's efforts at agrarian reform considering that attaining 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 industry. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise bought by Moscow to sow cotton, Uzbekistan in specific was singled out to produce "white gold."
By the end of the 1930s the Soviet Union had become self-dependent in cotton; five decades later on it had ended up being 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 lack of options Tashkent remains wedded to cotton, producing about 3.6 million loads every year, which generates more than $1 billion while making up roughly 60 percent of the country's hard cash income.
Beginning in the mid-1960s the Soviet federal government's instructions for Central Asian cotton production mostly bankrupted the region'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 area's two primary rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, resulting in the remarkable shrinking of the rivers' last location, the Aral Sea. The Aral, once 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 one of the 20th century's worst ecological disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's service design 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 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 money and access to the know-how of America's land grant universities. What is specific is that biofuel's market share will grow with 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, 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 want to follow the Silk Road into establishing a new market. Certainly anything that reduces water use and pesticides, diversifies crop production and enhances the lot of their agrarian population will receive most careful consideration from Central Asia's governments, and farming and grease processing plants are not only more affordable than pipelines, they can be built quicker.
And jatropha curcas's biofuel potential? Another story for another time.