Central Asia's Vast Biofuel Opportunity

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The current revelations of a International Energy Administration whistleblower that the IEA may have distorted crucial oil forecasts under intense U.S.

The current discoveries of a International Energy Administration whistleblower that the IEA may have distorted crucial oil forecasts under intense U.S. pressure is, if true (and whistleblowers seldom come forward to advance their careers), a slow-burning thermonuclear surge 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 opportunities of discovering brand-new reserves have the prospective to throw governments' long-term planning into mayhem.


Whatever the reality, increasing long term international needs appear specific to outstrip production in the next decade, especially offered the high and increasing costs of developing 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 scenario, additives and substitutes such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising costs drive this innovation to the leading edge, one of the richest potential production locations has actually been completely neglected by investors already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a significant gamer in the production of biofuels if adequate foreign investment can be procured. Unlike Brazil, where biofuel is made 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 previous Soviet Caucasian and Central Asian republics, those clustered around the coasts of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom because of record-high energy prices, while Turkmenistan is waiting in the wings as an increasing producer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly scant hydrocarbon resources relative to their Western Caspian neighbors have mainly hindered their capability to capitalize rising international energy demands up to now. Mountainous Kyrgyzstan and Tajikistan stay mainly dependent for their electrical requirements on their Soviet-era hydroelectric facilities, but their increased requirement to produce winter electrical energy has actually caused autumnal and winter water discharges, in turn severely impacting the agriculture of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream countries do have nevertheless 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 ended up being 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 terrific appeal in Astana, Ashgabat and Tashkent and to a lower level Astana for those sturdy investors going to bank on the future, specifically as a plant indigenous to the region has actually already proven itself in trials.


Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased scientific interest for its oleaginous qualities, with a number of European and American business already examining how to produce it in commercial amounts for biofuel. In January Japan Airlines carried out a historic test flight utilizing camelina-based bio-jet fuel, ending up being the very first Asian provider to explore flying on fuel stemmed 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 operational efficiency ability and prospective commercial viability.


As an alternative energy source, camelina has much to advise 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 immune 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 significant wheat exporter. Another bonus of camelina is its tolerance of poorer, less fertile conditions. An acre planted 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 heap (1000 kg) of camelina will include 350 kg of oil, of which pressing can draw out 250 kg. Nothing in camelina production is squandered as after processing, the plant's debris can be used for livestock silage. Camelina silage has an especially appealing concentration of omega-3 fatty acids that make it an especially fine livestock feed candidate that is simply now gaining recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and contends well versus 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 indigenous to both Europe and Central Asia and hardly a new crop on the scene: historical evidence suggests it has actually been cultivated in Europe for at least 3 centuries to produce both veggie oil and animal fodder.


Field trials of production in Montana, presently the center of U.S. camelina research, revealed a large range of outcomes of 330-1,700 lbs of seed per acre, with oil material differing between 29 and 40%. Optimal seeding rates have been figured out to be in the 6-8 lb per acre range, as the seeds' little size of 400,000 seeds per lb can develop issues in germination to achieve an ideal plant density of around 9 plants per sq. ft.


Camelina's capacity might allow Uzbekistan to begin breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the country's attempts at agrarian reform since achieving self-reliance in 1991. Beginning in the late 19th century, the Russian federal government identified that Central Asia would become its cotton plantation to feed Moscow's growing fabric industry. The procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise ordered 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 actually ended up being self-sufficient in cotton; five years later on 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 may to diversify, in the absence of options Tashkent stays wedded to cotton, producing about 3.6 million tons every year, which generates more than $1 billion while constituting roughly 60 percent of the nation's hard cash income.


Beginning in the mid-1960s the Soviet government's regulations for Central Asian cotton production mainly bankrupted the area's scarcest resource, water. Cotton uses 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 watering canals, leading to the dramatic shrinkage of the rivers' final destination, the Aral Sea. The Aral, when 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 catastrophes.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University 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 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 out on is the foreign financial investment. U.S. investors have the cash and access to the proficiency of America's land grant universities. What is particular is that biofuel's market share will grow with time; less specific is who will profit of establishing it as a feasible issue in Central Asia.


If the recent past is anything to pass it is unlikely to be American and European financiers, focused as they are on Caspian oil and gas.


But while the Japanese flight experiments suggest Asian interest, American investors have the academic know-how, if they are willing to follow the Silk Road into developing a brand-new market. Certainly anything that reduces water use and pesticides, diversifies crop production and enhances the great deal of their agrarian population will get most mindful factor to consider from Central Asia's governments, and farming and grease processing plants are not just more affordable than pipelines, they can be built quicker.


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

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