Central Asia's Vast Biofuel Opportunity
The recent discoveries of a International Energy Administration that the IEA may have misshaped essential oil forecasts under extreme U.S. pressure is, if real (and whistleblowers rarely come forward to advance their professions), a slow-burning atomic explosion on future global 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 brand-new reserves have the possible to toss governments' long-term preparation into mayhem.
Whatever the truth, increasing long term international demands appear specific to overtake production in the next years, specifically given the high and rising expenses of establishing 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 first barrels of oil are produced.
In such a situation, ingredients and substitutes such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and increasing costs drive this innovation to the leading edge, one of the richest possible production locations has actually been totally 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 enough foreign investment can be obtained. Unlike Brazil, where biofuel is made mainly 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 shores 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 producer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and relatively scant hydrocarbon resources relative to their Western Caspian next-door neighbors have actually mainly hindered their capability to money in on rising worldwide energy demands already. Mountainous Kyrgyzstan and Tajikistan stay largely dependent for their electrical needs on their Soviet-era hydroelectric infrastructure, however their heightened need to produce winter season electrical energy has led to autumnal and winter water discharges, in turn seriously impacting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream nations do have however is a Soviet-era tradition of farming production, which in Uzbekistan's and Turkmenistan case was mainly directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev's "Virgin Lands" programs, has actually ended up being a significant manufacturer of wheat. Based upon my conversations with Central Asian government officials, given the thirsty demands of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lower degree Astana for those hardy financiers ready to wager on the future, specifically as a plant indigenous to the area has currently shown 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 investigating how to produce it in industrial quantities for biofuel. In January Japan Airlines undertook a historical test flight using camelina-based bio-jet fuel, ending up being the first Asian provider to try out 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 evaluation of camelina's functional performance capability and prospective commercial practicality.
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 unsusceptible 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 reward 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 load (1000 kg) of camelina will contain 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is squandered as after processing, the plant's particles can be utilized for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fatty acids that make it an especially great animals feed prospect that is recently getting acknowledgment in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and contends well against 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 suitable 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: historical evidence suggests it has actually been cultivated in Europe for a minimum of three millennia to produce both veggie oil and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research, revealed a broad range of results of 330-1,700 pounds of seed per acre, with oil material varying in between 29 and 40%. Optimal seeding rates have been identified to be in the 6-8 lb per acre variety, as the seeds' little size of 400,000 seeds per lb can create problems in germination to achieve an ideal plant density of around 9 plants per sq. ft.
Camelina's potential might enable Uzbekistan to begin breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has warped the nation's attempts at agrarian reform considering that achieving independence in 1991. Beginning in the late 19th century, the Russian federal government determined 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 also purchased 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 ended up being self-dependent in cotton; 5 decades later it had become 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 alternatives Tashkent remains wedded to cotton, producing about 3.6 million loads each year, 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 instructions 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 two main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, leading to the remarkable shrinkage of the rivers' last location, the Aral Sea. The Aral, as soon as 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 environmental catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently explained camelina's business model to Capital Press as: "At 1,400 pounds per acre at 16 cents a pound, camelina would bring in $224 per acre; 28-bushel white wheat at $8.23 per bushel would garner $230."
Central Asia has the land, the farms, the watering facilities and a modest wage scale in contrast to America or Europe - all that's missing out on 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 reap the benefits of establishing it as a feasible issue in Central Asia.
If the current past is anything to pass it is unlikely to be American and European financiers, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments show Asian interest, American investors have the scholastic competence, if they are willing to follow the Silk Road into establishing a new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and enhances the lot of their agrarian population will receive 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 developed more quickly.
And jatropha curcas's biofuel potential? Another story for another time.