Central Asia's Vast Biofuel Opportunity
The recent discoveries of a International Energy Administration whistleblower that the IEA may have misshaped key oil projections under extreme U.S. pressure is, if true (and whistleblowers rarely step forward to advance their careers), a slow-burning atomic explosion on future international 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 discovering brand-new reserves have the prospective to toss governments' long-lasting preparation into chaos.
Whatever the reality, rising long term global needs seem specific to overtake production in the next decade, specifically provided the high and increasing expenses of establishing brand-new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in financial investments before their very first barrels of oil are produced.
In such a situation, ingredients and substitutes such as biofuels will play an ever-increasing role by extending beleaguered production quotas. As market forces and rising costs drive this innovation to the leading edge, one of the richest possible production locations has actually been absolutely neglected by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a significant gamer in the production of biofuels if enough foreign financial investment can be acquired. Unlike Brazil, where biofuel is made largely 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 coasts of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom due to the fact that 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 fairly little hydrocarbon resources relative to their Western Caspian neighbors have mostly hindered their ability to capitalize increasing worldwide energy needs already. Mountainous Kyrgyzstan and Tajikistan stay mostly dependent for their electrical needs on their Soviet-era hydroelectric facilities, however their heightened requirement to create winter electrical power has actually caused autumnal and winter season water discharges, in turn seriously affecting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream nations do have however is a Soviet-era legacy of agricultural production, which in Uzbekistan's and Turkmenistan case was largely 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 on my conversations with Central Asian government officials, given the thirsty needs of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have excellent appeal in Astana, Ashgabat and Tashkent and to a lower degree Astana for those sturdy investors happy to wager on the future, especially as a plant indigenous to the region has actually currently 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 currently investigating how to produce it in commercial amounts for biofuel. In January Japan Airlines undertook a historical test flight using camelina-based bio-jet fuel, becoming the first Asian provider to explore flying on fuel derived 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 operational performance capability and possible industrial 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 used as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's significant wheat exporter. Another bonus of camelina is its tolerance of poorer, less fertile conditions. An acre sown with camelina can produce up to 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 wasted as after processing, the plant's debris can be used for livestock silage. Camelina silage has a particularly appealing concentration of omega-3 fats that make it a particularly great animals feed prospect that is recently 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 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 family, is native to both Europe and Central Asia and barely a new crop on the scene: archaeological proof shows it has actually been cultivated in Europe for a minimum of 3 centuries to produce both grease and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research study, showed a large range of results of 330-1,700 pounds of seed per acre, with oil content differing between 29 and 40%. Optimal seeding rates have been figured out to be in the 6-8 lb per acre variety, as the seeds' little size of 400,000 seeds per pound can develop problems in germination to achieve an ideal plant density of around 9 plants per sq. ft.
Camelina's potential could enable Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the nation's efforts at agrarian reform considering that achieving independence in 1991. Beginning in the late 19th century, the Russian government determined 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 also purchased by Moscow to sow cotton, Uzbekistan in particular 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; five 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 may to diversify, in the lack of options Tashkent stays wedded to cotton, producing about 3.6 million tons annually, which brings in more than $1 billion while constituting around 60 percent of the nation's hard cash earnings.
Beginning in the mid-1960s the Soviet federal government's regulations 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 area's 2 main rivers, the Amu Darya and Syr Darya, into ineffective irrigation canals, leading to the dramatic shrinkage 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 actually diminished to one-quarter its original size in among the 20th century's worst eco-friendly disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University 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 gather $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 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 particular is that biofuel's market share will grow over time; less certain is who will profit of establishing it as a viable issue 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 show Asian interest, American investors have the scholastic know-how, if they want to follow the Silk Road into developing a brand-new market. Certainly anything that minimizes water use and pesticides, diversifies crop production and enhances the lot of their agrarian population will get most careful factor to consider from Central Asia's federal governments, and farming and veggie oil processing plants are not only much cheaper than pipelines, they can be constructed more quickly.
And jatropha curcas's biofuel capacity? Another story for another time.