Central Asia's Vast Biofuel Opportunity
The current discoveries of a International Energy Administration whistleblower that the IEA might have misshaped crucial oil forecasts under extreme U.S. pressure is, if true (and whistleblowers seldom come forward to advance their careers), a slow-burning atomic explosion on future international oil production. The Bush administration's actions in pressuring the IEA to underplay the rate of decrease from existing oil fields while overplaying the chances of finding brand-new reserves have the prospective to throw governments' long-term preparation into chaos.
Whatever the reality, increasing long term international needs appear particular to outstrip production in the next decade, specifically given the high and rising costs of establishing brand-new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in financial investments before their first barrels of oil are produced.
In such a situation, additives and replacements such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing costs drive this innovation to the forefront, among the richest possible production areas has been totally overlooked by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a significant player in the production of biofuels if adequate foreign investment can be acquired. Unlike Brazil, where biofuel is made mainly 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 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 costs, while Turkmenistan is waiting in the wings as an increasing manufacturer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly little hydrocarbon resources relative to their Western Caspian neighbors have mainly inhibited their ability to capitalize increasing global energy needs up to now. Mountainous Kyrgyzstan and Tajikistan remain mostly dependent for their electrical requirements on their Soviet-era hydroelectric facilities, however their increased requirement to produce winter electrical power has actually led to autumnal and winter season water discharges, in turn significantly impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream nations do have nevertheless is a Soviet-era legacy 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 actually become a major manufacturer of wheat. Based upon my discussions with Central Asian government authorities, provided the thirsty needs of cotton monoculture, foreign proposals 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 bank on the future, particularly as a plant native to the area has actually currently proven itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased scientific interest for its oleaginous qualities, with several European and American business currently investigating how to produce it in industrial amounts for biofuel. In January Japan Airlines carried out a historic test flight using camelina-based bio-jet fuel, ending up being the very first Asian provider to explore 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 efficiency capability and possible commercial practicality.
As an alternative energy source, camelina has much to suggest it. It has a high oil material low in hydrogenated 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 benefit 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 ton (1000 kg) of camelina will consist of 350 kg of oil, of which pushing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's particles can be used for animals silage. Camelina silage has a particularly appealing concentration of omega-3 fats that make it an especially great livestock feed candidate that is just now acquiring acknowledgment in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and contends well versus weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina might 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 brand-new crop on the scene: archaeological evidence shows it has actually been cultivated in Europe for a minimum of three millennia to produce both grease and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research, revealed a wide variety of outcomes of 330-1,700 pounds of seed per acre, with oil content differing in between 29 and 40%. Optimal seeding rates have been determined to be in the 6-8 lb per acre range, as the seeds' little size of 400,000 seeds per pound can develop issues in germination to accomplish an optimal plant density of around 9 plants per sq. ft.
Camelina's potential might enable Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has deformed the country's attempts at agrarian reform since accomplishing self-reliance in 1991. Beginning in the late 19th century, the Russian government figured out that Central Asia would become its cotton plantation to feed Moscow's growing fabric market. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also purchased 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 ended up being self-sufficient in cotton; 5 years later it had ended up being 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 might to diversify, in the absence of alternatives Tashkent stays wedded to cotton, producing about 3.6 million lots annually, which brings in more than $1 billion while making up around 60 percent of the country's difficult currency earnings.
Beginning in the mid-1960s the Soviet government's directives for Central Asian cotton production mostly 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 volumes of water from the area's 2 primary rivers, the Amu Darya and Syr Darya, into ineffective irrigation canals, resulting in the significant shrinkage of the rivers' last location, the Aral Sea. The Aral, when the world's fourth-largest inland sea with a location of 26,000 square miles, has shrunk to one-quarter its original size in among the 20th century's worst ecological catastrophes.
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 amass $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. financiers have the cash 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 certain is who will enjoy the advantages of developing it as a practical concern 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 show Asian interest, American financiers have the scholastic proficiency, 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 improves the lot of their agrarian population will receive most cautious consideration from Central Asia's governments, and farming and grease processing plants are not only much less expensive than pipelines, they can be built more rapidly.
And potential? Another story for another time.