Central Asia's Vast Biofuel Opportunity

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The current discoveries of a International Energy Administration whistleblower that the IEA may have misshaped key oil projections under intense U.S.

The recent discoveries of a International Energy Administration whistleblower that the IEA may have distorted crucial oil projections under extreme U.S. pressure is, if true (and whistleblowers hardly ever step forward to advance their professions), a slow-burning atomic surge on future worldwide oil production. The Bush administration's actions in pressuring the IEA to underplay the rate of decline from existing oil fields while overplaying the possibilities of finding brand-new reserves have the potential to toss federal governments' long-lasting preparation into turmoil.


Whatever the truth, rising long term global demands seem specific to overtake production in the next decade, specifically given the high and rising costs of establishing 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 very first barrels of oil are produced.


In such a situation, additives and substitutes such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising rates drive this technology to the leading edge, one of the wealthiest potential production locations has actually been completely ignored by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a major player in the production of biofuels if adequate foreign financial investment can be procured. Unlike Brazil, where biofuel is manufactured mostly 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 coasts of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom since of record-high energy rates, while Turkmenistan is waiting in the wings as a rising manufacturer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and reasonably little hydrocarbon resources relative to their Western Caspian next-door neighbors have actually largely prevented their capability to cash in on increasing global energy demands up to now. Mountainous Kyrgyzstan and Tajikistan stay mostly reliant for their electrical requirements on their Soviet-era hydroelectric facilities, however their increased need to produce winter season electrical power has actually led to autumnal and winter season water discharges, in turn seriously impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these 3 downstream countries 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 become a major manufacturer of wheat. Based upon my discussions with Central Asian federal government officials, given the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser degree Astana for those durable financiers going to wager on the future, particularly as a plant native to the region 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 clinical 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 using camelina-based bio-jet fuel, ending up being the first Asian provider to explore flying on fuel stemmed from sustainable feedstocks throughout a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month assessment of camelina's operational performance capability and possible business viability.


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 immune to spring freezing, requires less fertilizer and herbicides, and can be utilized as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's major 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 ton (1000 kg) of camelina will include 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 utilized for animals silage. Camelina silage has an especially appealing concentration of omega-3 fats that make it a particularly great livestock feed prospect that is recently acquiring recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and contends well against 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 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 hardly a brand-new crop on the scene: archaeological evidence suggests it has actually been cultivated in Europe for at least 3 centuries to produce both grease and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research study, showed a vast array of outcomes of 330-1,700 pounds of seed per acre, with oil content differing between 29 and 40%. Optimal seeding rates have actually been identified to be in the 6-8 lb per acre variety, as the seeds' little size of 400,000 seeds per lb can produce issues in germination to attain 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 legacy, the imposition of a cotton monoculture that has warped the nation's attempts at agrarian reform considering that accomplishing independence in 1991. Beginning in the late 19th century, the Russian government determined 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 likewise purchased by Moscow to sow 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-sufficient in cotton; 5 years later on 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 may to diversify, in the lack of options Tashkent remains wedded to cotton, producing about 3.6 million loads yearly, which generates more than $1 billion while making up roughly 60 percent of the nation's hard cash earnings.


Beginning in the mid-1960s the Soviet federal government's instructions 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 coordinators to divert ever-increasing volumes of water from the region's two main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, leading to the significant 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 shrunk 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 irrigation infrastructure and a modest wage scale in comparison 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 certain is that biofuel's market share will grow in time; less specific is who will gain the benefits of establishing it as a viable issue in Central Asia.


If the current past is anything to go by it is unlikely to be American and European financiers, fixated as they are on Caspian oil and gas.


But while the Japanese flight experiments suggest Asian interest, American investors have the academic proficiency, if they want 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 receive most mindful consideration from Central Asia's federal governments, and farming and grease processing plants are not just more affordable than pipelines, they can be developed more rapidly.


And jatropha's biofuel capacity? Another story for another time.

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