Central Asia's Vast Biofuel Opportunity

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The current discoveries of a International Energy Administration whistleblower that the IEA might have misshaped crucial oil forecasts under extreme U.S.

The current revelations of a International Energy Administration whistleblower that the IEA may have misshaped essential oil projections under intense U.S. pressure is, if true (and whistleblowers seldom step forward to advance their professions), a slow-burning atomic surge on future international oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decrease from existing oil fields while overplaying the chances of finding brand-new reserves have the potential to toss governments' long-term preparation into chaos.


Whatever the reality, rising long term global needs appear particular to outstrip production in the next decade, especially given the high and rising costs of developing brand-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 very first barrels of oil are produced.


In such a circumstance, additives and replacements such as biofuels will play an ever-increasing role by extending beleaguered production quotas. As market forces and increasing costs drive this technology to the forefront, one of the wealthiest potential production areas has been totally overlooked by investors 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 enough foreign investment can be acquired. Unlike Brazil, where biofuel is manufactured mainly 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 coasts of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom since of record-high energy rates, while Turkmenistan is waiting in the wings as a rising manufacturer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and relatively little hydrocarbon resources relative to their Western Caspian neighbors have actually mainly prevented their ability to capitalize increasing worldwide energy needs up to now. Mountainous Kyrgyzstan and Tajikistan stay largely dependent for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their increased need to produce winter electrical energy has actually resulted in autumnal and winter water discharges, in turn severely impacting the agriculture of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream nations do have nevertheless is a Soviet-era legacy 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 significant producer of wheat. Based upon my conversations with Central Asian federal government authorities, provided 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 extent Astana for those sturdy financiers happy to wager on the future, particularly as a plant indigenous to the region has currently proven itself in trials.


Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased scientific interest for its oleaginous qualities, with several European and American companies already investigating how to produce it in industrial amounts for biofuel. In January Japan Airlines undertook a historic test flight using camelina-based bio-jet fuel, becoming the very first Asian provider to experiment with flying on fuel stemmed from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month examination of camelina's operational efficiency capability and possible 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 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 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 ton (1000 kg) of camelina will consist of 350 kg of oil, of which pushing can draw out 250 kg. Nothing in camelina production is lost as after processing, the plant's particles can be utilized for animals silage. Camelina silage has a particularly attractive concentration of omega-3 fats that make it a particularly great animals feed prospect that is simply now acquiring recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and completes well against weeds when an even crop is developed. 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 family, is indigenous to both Europe and Central Asia and barely a brand-new crop on the scene: archaeological evidence shows it has actually been cultivated in Europe for a minimum of three millennia to produce both vegetable oil and animal fodder.


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


Camelina's capacity might enable Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has warped the nation's efforts at agrarian reform since 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 textile market. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise 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 ended up being self-dependent in cotton; 5 years later it had actually 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 absence of alternatives Tashkent remains wedded to cotton, producing about 3.6 million tons every year, which brings in more than $1 billion while making up approximately 60 percent of the nation's tough currency earnings.


Beginning in the mid-1960s the Soviet government's directives for Central Asian cotton production mainly 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 two primary rivers, the Amu Darya and Syr Darya, into ineffective watering canals, leading to the significant shrinkage of the rivers' final location, the Aral Sea. The Aral, once the world's fourth-largest inland sea with an area of 26,000 square miles, has actually shrunk to one-quarter its original 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 recently described camelina's company 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 gather $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 cash and access to the expertise of America's land grant universities. What is specific is that biofuel's market share will grow in time; less specific is who will profit of developing it as a feasible concern 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 indicate Asian interest, American investors have the academic expertise, if they want to follow the Silk Road into establishing a brand-new market. Certainly anything that lessens water use 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 governments, and farming and vegetable oil processing plants are not just much more affordable than pipelines, they can be built quicker.


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

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