Central Asia's Vast Biofuel Opportunity
The current revelations of a International Energy Administration whistleblower that the IEA might have distorted key oil forecasts under extreme U.S. pressure is, if true (and whistleblowers hardly ever step forward to advance their careers), a slow-burning thermonuclear explosion on future international oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decline from existing oil fields while overplaying the possibilities of finding new reserves have the prospective to toss federal governments' long-lasting planning into turmoil.
Whatever the truth, rising long term international needs appear certain to overtake production in the next years, especially offered the high and rising expenses 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 investments before their very first barrels of oil are produced.
In such a circumstance, additives and alternatives such as biofuels will play an ever-increasing role by stretching beleaguered production quotas. As market forces and rising rates drive this technology to the forefront, among the wealthiest prospective production areas has been completely overlooked by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a major gamer in the production of biofuels if adequate foreign investment can be acquired. Unlike Brazil, where biofuel is manufactured 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 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 an increasing producer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly little hydrocarbon resources relative to their Western Caspian neighbors have mostly prevented their ability to capitalize rising global energy needs up to now. Mountainous Kyrgyzstan and Tajikistan stay largely reliant for their electrical needs on their Soviet-era hydroelectric facilities, but their heightened need to create winter season electrical energy has resulted in autumnal and winter season water discharges, in turn significantly impacting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream nations do have nevertheless is a Soviet-era tradition of agricultural production, which in Uzbekistan's and Turkmenistan case was largely directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev's "Virgin Lands" programs, has ended up being a significant manufacturer of wheat. Based on my discussions with Central Asian government authorities, provided the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have excellent appeal in Astana, Ashgabat and Tashkent and to a lesser degree Astana for those hardy financiers ready to bank on the future, specifically as a plant native to the region has already proven itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased clinical interest for its oleaginous qualities, with several European and American business currently examining how to produce it in commercial 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 provider to try out flying on fuel originated from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month assessment of camelina's operational efficiency ability and potential 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 utilized as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's major wheat exporter. Another reward 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 lot (1000 kg) of camelina will contain 350 kg of oil, of which pushing can draw out 250 kg. Nothing in camelina production is lost as after processing, the plant's debris can be utilized for animals silage. Camelina silage has an especially attractive concentration of omega-3 fatty acids that make it an especially fine livestock feed candidate that is recently gaining recognition in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and completes well versus 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 suitable 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 hardly a new crop on the scene: historical proof indicates it has been cultivated in Europe for a minimum of 3 centuries to produce both grease and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research study, revealed a large range of results of 330-1,700 lbs of seed per acre, with oil material varying between 29 and 40%. Optimal seeding rates have actually been identified to be in the 6-8 lb per acre range, as the seeds' small size of 400,000 seeds per pound can produce issues in germination to achieve an optimum 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 warped the country's efforts at agrarian reform considering that attaining self-reliance 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 fabric market. The process 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 it had actually become a major 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 options Tashkent stays wedded to cotton, producing about 3.6 million heaps every year, which brings in more than $1 billion while making up approximately 60 percent of the country's hard cash earnings.
Beginning in the mid-1960s the Soviet federal government's regulations for Central Asian cotton production largely bankrupted the region's scarcest resource, water. Cotton utilizes about 3.5 acre feet of water per acre of plants, leading Soviet organizers to divert ever-increasing of water from the area's two main rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, resulting in 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 diminished to one-quarter its original size in one of the 20th century's worst environmental disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's business model 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 irrigation infrastructure and a modest wage scale in comparison to America or Europe - all that's missing out on is the foreign investment. U.S. investors have the cash and access to the competence of America's land grant universities. What is particular is that biofuel's market share will grow with time; less certain is who will profit of developing it as a feasible concern in Central Asia.
If the current past is anything to pass it is not likely to be American and European investors, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments suggest Asian interest, American investors have the scholastic competence, if they are ready to follow the Silk Road into developing a new market. Certainly anything that decreases water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will get most mindful consideration from Central Asia's governments, and farming and grease processing plants are not only more affordable than pipelines, they can be built more quickly.
And jatropha's biofuel capacity? Another story for another time.