Central Asia's Vast Biofuel Opportunity
The current revelations of a International Energy Administration whistleblower that the IEA might have misshaped crucial oil projections under extreme U.S. pressure is, if real (and whistleblowers seldom step forward to advance their careers), a slow-burning atomic surge on future international oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decline from existing oil fields while overplaying the possibilities of discovering new reserves have the prospective to toss governments' long-term preparation into chaos.
Whatever the reality, rising long term worldwide needs appear specific to outstrip production in the next decade, especially given 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 require billions in financial investments before their first barrels of oil are produced.
In such a scenario, additives and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising rates drive this innovation to the forefront, among the wealthiest potential production locations has actually been totally ignored by investors already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a significant gamer in the production of biofuels if enough foreign investment can be acquired. 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 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 producer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and relatively scant hydrocarbon resources relative to their Western Caspian neighbors have mainly inhibited their ability to cash in on increasing global energy needs up to now. Mountainous Kyrgyzstan and Tajikistan remain largely reliant for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their increased need to generate winter season electrical energy has actually resulted in autumnal and winter season water discharges, in turn seriously affecting the agriculture 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 become a major producer 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 level Astana for those hardy 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 incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is drawing in increased scientific interest for its oleaginous qualities, with a number of 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, becoming the first Asian carrier to experiment with flying on fuel originated from sustainable feedstocks during a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month evaluation of camelina's functional efficiency capability and potential commercial viability.
As an alternative energy source, camelina has much to advise 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 specific interest in Kazakhstan, now Central Asia's significant wheat exporter. Another benefit of camelina is its tolerance of poorer, less fertile conditions. An acre sown with camelina can produce up to 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 consist of 350 kg of oil, of which pushing can extract 250 kg. Nothing in camelina production is lost as after processing, the plant's debris can be utilized for livestock silage. Camelina silage has an especially appealing concentration of omega-3 fats that make it an especially great livestock feed candidate that is recently acquiring recognition in the U.S. and Canada. Camelina is fast growing, produces its own (allelopathy) and competes well versus weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could be a perfect 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 barely a new crop on the scene: historical proof shows it has actually been cultivated in Europe for at least three centuries to produce both veggie oil and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research study, showed a vast array of outcomes of 330-1,700 lbs of seed per acre, with oil material differing between 29 and 40%. Optimal seeding rates have actually been figured out to be in the 6-8 pound per acre variety, as the seeds' little size of 400,000 seeds per pound can produce problems in germination to attain an ideal plant density of around 9 plants per sq. ft.
Camelina's capacity could permit Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has deformed the country's efforts at agrarian reform since 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 market. The procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also 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 become self-dependent in cotton; five decades later it had 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 lack of options Tashkent stays wedded to cotton, producing about 3.6 million loads each year, which generates more than $1 billion while constituting around 60 percent of the nation's hard cash income.
Beginning in the mid-1960s the Soviet government's instructions for Central Asian cotton production mostly bankrupted the region'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 region's 2 main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, leading to the significant shrinkage of the rivers' final location, 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 initial size in one of the 20th century's worst eco-friendly disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently explained camelina's service 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 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 out on is the foreign financial investment. U.S. financiers have the money and access to the expertise of America's land grant universities. What is specific is that biofuel's market share will grow over time; less particular is who will profit of developing it as a feasible concern in Central Asia.
If the recent past is anything to go by it is not likely to be American and European financiers, focused 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 prepared to follow the Silk Road into developing a brand-new market. Certainly anything that lessens water use and pesticides, diversifies crop production and enhances the lot of their agrarian population will receive most cautious factor to consider from Central Asia's federal governments, and farming and grease processing plants are not only much less expensive than pipelines, they can be constructed faster.
And jatropha curcas's biofuel potential? Another story for another time.