Central Asia's Vast Biofuel Opportunity
The recent revelations of a International Energy Administration whistleblower that the IEA might have misshaped essential oil projections under extreme U.S. pressure is, if true (and whistleblowers hardly ever step forward to advance their professions), a slow-burning atomic explosion on future global oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decrease from existing oil fields while overplaying the chances of finding brand-new reserves have the possible to throw governments' long-lasting planning into chaos.
Whatever the truth, rising long term international demands appear specific to overtake production in the next decade, especially provided the high and increasing expenses of developing 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 very first barrels of oil are produced.
In such a scenario, additives and substitutes such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and increasing costs drive this technology to the leading edge, one of the wealthiest possible production locations has actually been totally overlooked by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a significant player in the production of biofuels if adequate foreign financial investment can be obtained. Unlike Brazil, where biofuel is produced mainly 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 shores of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom because of record-high energy costs, while Turkmenistan is waiting in the wings as a rising manufacturer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and relatively little hydrocarbon resources relative to their Western Caspian neighbors have mainly prevented their ability to cash in on rising global energy demands already. Mountainous Kyrgyzstan and Tajikistan stay largely reliant for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their heightened requirement to create winter season electricity has resulted in autumnal and winter season water discharges, in turn badly affecting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream countries do have nevertheless is a Soviet-era tradition of agricultural production, which in Uzbekistan's and Turkmenistan case was mainly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has become a major producer of wheat. Based on my discussions with Central Asian federal government authorities, offered the thirsty needs of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lesser level Astana for those sturdy investors ready to wager on the future, particularly as a plant indigenous to the area 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 numerous European and American companies already examining how to produce it in industrial quantities for biofuel. In January Japan Airlines undertook a historic test flight using camelina-based bio-jet fuel, ending up being the first Asian carrier 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 conclusion of a 12-month assessment of camelina's functional performance capability and possible business viability.
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 immune to spring freezing, requires less fertilizer and herbicides, and can be utilized as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's significant wheat exporter. Another reward of camelina is its tolerance of poorer, less fertile conditions. An acre sown 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 draw out 250 kg. Nothing in camelina production is lost as after processing, the plant's debris can be utilized for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fats that make it a particularly fine livestock feed prospect that is simply now acquiring acknowledgment 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 developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could be an ideal 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 household, is native to both Europe and Central Asia and barely a brand-new crop on the scene: archaeological proof indicates 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, currently 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 differing in between 29 and 40%. Optimal seeding rates have been figured out to be in the 6-8 pound per acre variety, as the seeds' small size of 400,000 seeds per pound can create issues in germination to achieve an optimum plant density of around 9 plants per sq. ft.
Camelina's potential could allow Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the nation's efforts at agrarian reform considering that attaining 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 process 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; five decades later it had actually become a major 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 remains wedded to cotton, producing about 3.6 million heaps annually, which generates more than $1 billion while making up approximately 60 percent of the nation's difficult currency income.
Beginning in the mid-1960s the Soviet government's directives 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 planners to divert ever-increasing volumes of water from the region's 2 main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, leading to the dramatic shrinkage of the rivers' last destination, the Aral Sea. The Aral, once the world's fourth-largest inland sea with a location of 26,000 square miles, has actually shrunk to one-quarter its initial 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 explained camelina's company 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 irrigation facilities and a modest wage scale in contrast to America or Europe - all that's missing is the foreign investment. U.S. investors have the cash and access to the knowledge of America's land grant universities. What is certain is that biofuel's market share will grow gradually; less particular is who will enjoy the benefits of developing it as a viable concern in Central Asia.
If the current past is anything to go by it is unlikely 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 financiers have the scholastic proficiency, if they are prepared to follow the Silk Road into developing a new market. Certainly anything that decreases water use and pesticides, diversifies crop production and enhances the great deal of their agrarian population will get most cautious 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 more rapidly.
And jatropha curcas's biofuel potential? Another story for another time.