Central Asia's Vast Biofuel Opportunity
The recent revelations of a International Energy Administration whistleblower that the IEA might have distorted essential oil projections under intense U.S. pressure is, if true (and whistleblowers seldom step forward to advance their professions), a slow-burning atomic explosion on future global 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 finding new reserves have the prospective to throw governments' long-lasting planning into mayhem.
Whatever the reality, rising long term international needs appear particular to outstrip production in the next decade, especially offered the high and rising expenses of developing new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in investments before their first barrels of oil are produced.
In such a scenario, additives and replacements such as biofuels will play an ever-increasing role by stretching beleaguered production quotas. As market forces and increasing prices drive this innovation to the leading edge, among the wealthiest possible production locations has actually been completely neglected by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a major gamer in the production of biofuels if adequate foreign investment can be procured. 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 a native plant, Camelina sativa.
Of the former Soviet Caucasian and Central Asian republics, those clustered around the coasts of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom due to the fact that of record-high energy prices, while Turkmenistan is waiting in the wings as a rising manufacturer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly little hydrocarbon resources relative to their Western Caspian next-door neighbors have actually mostly hindered their ability to cash in on increasing global energy needs up to now. Mountainous Kyrgyzstan and Tajikistan remain mostly reliant for their electrical needs on their Soviet-era hydroelectric facilities, however their increased need to create winter season electrical energy has actually resulted in autumnal and winter season water discharges, in turn seriously impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream countries do have however is a Soviet-era legacy of agricultural production, which in Uzbekistan's and Turkmenistan case was mainly 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 authorities, provided the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lesser extent Astana for those sturdy financiers ready to bank on the future, specifically as a plant native to the area 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 bring in increased scientific interest for its oleaginous qualities, with several European and American companies already examining how to produce it in commercial 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 experiment with flying on fuel originated from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month assessment of camelina's functional performance capability and possible business practicality.
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 immune 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 benefit of camelina is its tolerance of poorer, less fertile conditions. An acre planted 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 pushing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's particles can be utilized for animals silage. Camelina silage has a particularly appealing concentration of omega-3 fatty acids that make it an especially fine livestock feed candidate that is recently getting acknowledgment in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and contends well versus weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could 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 barely a new crop on the scene: archaeological evidence suggests it has actually been cultivated in Europe for at least three 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 wide variety of results of 330-1,700 pounds of seed per acre, with oil content differing in between 29 and 40%. Optimal seeding rates have been identified to be in the 6-8 lb per acre range, as the seeds' little size of 400,000 seeds per lb can create issues in germination to accomplish an optimal plant density of around 9 plants per sq. ft.
Camelina's potential could enable Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the nation's efforts at agrarian reform considering that attaining 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 textile market. The procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise bought 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 become self-dependent 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 may to diversify, in the absence of alternatives Tashkent stays wedded to cotton, producing about 3.6 million lots annually, which brings in more than $1 billion while constituting roughly 60 percent of the nation's hard cash income.
Beginning in the mid-1960s the Soviet federal government's regulations for Central Asian cotton production mostly bankrupted the region's scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet planners to divert ever-increasing volumes of water from the region's 2 main rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, leading to the dramatic shrinking of the rivers' last location, the Aral Sea. The Aral, once the world's fourth-largest inland sea with an area of 26,000 square miles, has diminished to one-quarter its initial size in among the 20th century's worst environmental catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's business 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 watering infrastructure and a modest wage scale in contrast to America or Europe - all that's missing out on is the foreign investment. U.S. have the money and access to the proficiency of America's land grant universities. What is particular is that biofuel's market share will grow gradually; less certain is who will gain the benefits of establishing it as a practical issue in Central Asia.
If the recent past is anything to pass it is not likely 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 want to follow the Silk Road into developing a new market. Certainly anything that lessens water use and pesticides, diversifies crop production and enhances the great deal of their agrarian population will receive most careful factor to consider from Central Asia's federal governments, and farming and grease processing plants are not only more affordable than pipelines, they can be constructed faster.
And jatropha's biofuel potential? Another story for another time.