Central Asia's Vast Biofuel Opportunity
The current discoveries of a International Energy Administration whistleblower that the IEA might have distorted crucial oil forecasts under extreme U.S. pressure is, if real (and whistleblowers seldom step forward to advance their professions), a slow-burning thermonuclear explosion on future worldwide oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decrease from existing oil fields while overplaying the opportunities of finding brand-new reserves have the prospective to throw federal governments' long-term planning into turmoil.
Whatever the reality, rising long term global needs appear specific to outstrip production in the next decade, especially offered 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 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 role by stretching beleaguered production quotas. As market forces and rising prices drive this innovation to the forefront, among the wealthiest prospective production locations has actually been absolutely neglected by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a significant player in the production of biofuels if enough foreign investment can be procured. Unlike Brazil, where biofuel is produced mostly 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 former Soviet Caucasian and Central Asian republics, those clustered around the shores of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom because of record-high energy rates, while Turkmenistan is waiting in the wings as an increasing manufacturer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly scant hydrocarbon resources relative to their Western Caspian neighbors have actually largely inhibited their ability to cash in on increasing worldwide energy demands up to now. Mountainous Kyrgyzstan and Tajikistan remain largely reliant for their electrical requirements on their Soviet-era hydroelectric infrastructure, however their increased need to produce winter electrical power has actually caused autumnal and winter water discharges, in turn severely impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream countries do have however is a Soviet-era legacy of agricultural production, which in Uzbekistan's and Turkmenistan case was mostly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually ended up being a major producer of wheat. Based on my discussions with Central Asian federal government officials, provided the thirsty needs of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser degree Astana for those sturdy investors ready to wager on the future, specifically as a plant indigenous to the area 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 drawing in increased scientific interest for its oleaginous qualities, with several European and American business already investigating how to produce it in commercial amounts for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, ending up being the first Asian provider to try out flying on fuel obtained from sustainable feedstocks during a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month examination of camelina's functional performance capability and potential business viability.
As an alternative energy source, camelina has much to suggest it. It has a high oil content 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 particular interest in Kazakhstan, now Central Asia's significant wheat exporter. Another bonus offer 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 include 350 kg of oil, of which pushing can extract 250 kg. Nothing in is lost as after processing, the plant's particles can be used for animals silage. Camelina silage has an especially appealing concentration of omega-3 fatty acids that make it a particularly great livestock feed candidate that is recently acquiring recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and competes well against 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: archaeological proof indicates it has been cultivated in Europe for at least 3 centuries to produce both grease and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research, showed a large range of outcomes 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 pound per acre variety, as the seeds' small 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 enable Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has warped the nation's attempts at agrarian reform given that attaining self-reliance in 1991. Beginning in the late 19th century, the Russian federal 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 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; 5 years later it had actually ended up being a significant 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 might to diversify, in the absence of options Tashkent remains wedded to cotton, producing about 3.6 million lots yearly, 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 uses about 3.5 acre feet of water per acre of plants, leading Soviet planners to divert ever-increasing volumes of water from the area's two primary rivers, the Amu Darya and Syr Darya, into ineffective watering canals, resulting in the remarkable shrinkage of the rivers' final destination, 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 ecological disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just 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 garner $230."
Central Asia has the land, the farms, the irrigation infrastructure and a modest wage scale in contrast to America or Europe - all that's missing out on is the foreign financial investment. U.S. investors have the money and access to the proficiency of America's land grant universities. What is specific is that biofuel's market share will grow over time; less certain is who will enjoy the benefits 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 investors, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments indicate Asian interest, American financiers have the scholastic competence, if they are ready to follow the Silk Road into developing a new market. Certainly anything that minimizes water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will get most cautious factor to consider from Central Asia's federal governments, and farming and veggie oil processing plants are not just more affordable than pipelines, they can be built quicker.
And jatropha's biofuel capacity? Another story for another time.