Central Asia's Vast Biofuel Opportunity
The recent discoveries of a International Energy Administration whistleblower that the IEA may have misshaped crucial oil projections under intense U.S. pressure is, if true (and whistleblowers hardly ever step forward to advance their professions), a slow-burning thermonuclear explosion on future global oil production. The Bush administration's actions in pressuring 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 governments' long-term preparation into chaos.
Whatever the reality, increasing long term worldwide demands appear particular to overtake production in the next years, particularly offered the high and rising costs of developing 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 very first barrels of oil are produced.
In such a scenario, ingredients and alternatives such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and rising prices drive this technology to the leading edge, among the wealthiest possible production locations has been absolutely overlooked by investors already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a major player in the production of biofuels if enough foreign financial investment can be obtained. 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 a native plant, Camelina sativa.
Of the former Soviet Caucasian and Central Asian republics, those clustered around the shores of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom since 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 isolation and relatively little hydrocarbon resources relative to their Western Caspian neighbors have mostly hindered their ability to money in on rising international energy needs already. Mountainous Kyrgyzstan and Tajikistan stay mostly reliant for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their heightened need to create winter season electrical power has caused autumnal and winter water discharges, in turn badly affecting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream countries do have however is a Soviet-era tradition of farming 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 ended up being a major manufacturer of wheat. Based upon my discussions with Central Asian federal government officials, offered the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser level Astana for those sturdy investors going to wager on the future, particularly as a plant indigenous 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 attracting increased scientific interest for its oleaginous qualities, with numerous European and American business already investigating how to produce it in business quantities for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, ending up being the very first Asian carrier to explore flying on fuel originated from sustainable feedstocks throughout a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month examination of camelina's functional efficiency capability and prospective commercial practicality.
As an alternative energy source, camelina has much to suggest it. It has a high oil material low in hydrogenated fat. In contrast to Central Asia's thirsty "king cotton," camelina is drought-resistant and unsusceptible to spring freezing, requires 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 perk 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 ton (1000 kg) of camelina will include 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's debris can be used for animals silage. Camelina silage has a particularly appealing concentration of omega-3 fatty acids that make it an especially great animals feed candidate that is simply now acquiring acknowledgment in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and competes well versus weeds when an even crop is developed. 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 household, is indigenous to both Europe and Central Asia and hardly a new crop on the scene: historical evidence shows it has actually been cultivated in Europe for at least 3 millennia to produce both veggie oil and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research study, revealed a vast array of results of 330-1,700 pounds of seed per acre, with oil content varying in between 29 and 40%. Optimal seeding rates have actually been figured out to be in the 6-8 pound 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 allow 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 given that attaining 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 process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise ordered 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 actually ended up being self-sufficient in cotton; 5 decades later on it had ended up being 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 lack of alternatives Tashkent remains wedded to cotton, producing about 3.6 million heaps annually, which brings in more than $1 billion while constituting roughly 60 percent of the country's hard cash 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 utilizes 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 primary rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, resulting in the dramatic shrinking of the rivers' final location, the Aral Sea. The Aral, once the inland sea with an area of 26,000 square miles, has shrunk to one-quarter its initial size in one of the 20th century's worst eco-friendly catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently explained 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 garner $230."
Central Asia has the land, the farms, the watering facilities and a modest wage scale in comparison to America or Europe - all that's missing is the foreign investment. U.S. financiers 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 in time; less specific is who will profit of developing it as a practical concern in Central Asia.
If the recent past is anything to pass it is unlikely to be American and European investors, focused as they are on Caspian oil and gas.
But while the Japanese flight experiments indicate Asian interest, American investors have the scholastic proficiency, if they are willing to follow the Silk Road into developing a 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 mindful factor to consider 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 capacity? Another story for another time.