Central Asia's Vast Biofuel Opportunity

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

The current revelations of a International Energy Administration whistleblower that the IEA might have distorted crucial oil forecasts under extreme U.S. pressure is, if true (and whistleblowers hardly ever come forward to advance their professions), a slow-burning atomic explosion 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 opportunities of discovering new reserves have the possible to toss federal governments' long-lasting planning into chaos.


Whatever the reality, increasing long term international needs seem certain to outstrip production in the next years, particularly given the high and rising costs of establishing new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will require billions in 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 increasing prices drive this technology to the forefront, among the wealthiest prospective production locations has been totally overlooked by investors already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a significant gamer in the production of biofuels if enough foreign investment can be procured. 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 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 because of record-high energy costs, while Turkmenistan is waiting in the wings as an increasing producer 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 largely hindered their capability to capitalize increasing global energy needs up to now. Mountainous Kyrgyzstan and Tajikistan stay largely reliant for their electrical needs on their Soviet-era hydroelectric facilities, but their heightened requirement to generate winter electrical energy has actually caused autumnal and winter water discharges, in turn severely affecting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream countries do have nevertheless is a Soviet-era legacy of agricultural 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 become a major producer of wheat. Based on my conversations with Central Asian federal government officials, provided the thirsty demands of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lower degree Astana for those hardy financiers going to wager on the future, particularly as a plant indigenous to the area has actually already proven itself in trials.


Known in the West as false 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 currently examining how to produce it in commercial quantities for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, ending up being the very first Asian provider to try out flying on fuel obtained from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month evaluation of camelina's operational performance capability and potential 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 immune to spring freezing, needs 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 bonus offer of camelina is its tolerance of poorer, less fertile conditions. An acre planted with camelina can produce approximately 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 pressing can extract 250 kg. Nothing in camelina production is lost as after processing, the plant's particles can be used for animals silage. Camelina silage has an especially appealing concentration of omega-3 fats that make it a particularly great animals 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 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 suitable for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape."


Camelina, a branch of the mustard family, is indigenous to both Europe and Central Asia and hardly a brand-new crop on the scene: archaeological evidence shows it has actually been cultivated in Europe for a minimum of 3 millennia to produce both veggie oil and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research, showed a vast array of outcomes of 330-1,700 lbs of seed per acre, with oil material varying in between 29 and 40%. Optimal seeding rates have actually been identified to be in the 6-8 lb per acre range, as the seeds' small size of 400,000 seeds per lb can create issues in germination to achieve an ideal plant density of around 9 plants per sq. ft.


Camelina's potential could permit Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the country's attempts at agrarian reform considering that accomplishing 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 textile market. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also bought 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 actually become self-sufficient in cotton; 5 years later it had actually ended up being a major 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 absence of alternatives Tashkent stays wedded to cotton, producing about 3.6 million loads every year, which brings in more than $1 billion while constituting approximately 60 percent of the country's tough currency income.


Beginning in the mid-1960s the Soviet federal government's directives for Central Asian cotton production mainly 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 region's two primary rivers, the Amu Darya and Syr Darya, into inefficient watering canals, leading to the remarkable shrinking of the rivers' final location, the Aral Sea. The Aral, once the world's fourth-largest inland sea with an area of 26,000 square miles, has actually shrunk to one-quarter its initial size in among the 20th century's worst environmental catastrophes.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University 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 gather $230."


Central Asia has the land, the farms, the watering facilities and a modest wage scale in comparison to America or Europe - all that's missing is the foreign financial investment. U.S. financiers have the money and access to the competence of America's land grant universities. What is specific is that biofuel's market share will grow over time; less specific is who will gain the benefits of establishing it as a feasible issue 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 investors have the academic proficiency, if they are ready to follow the Silk Road into developing a new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and enhances the great deal of their agrarian population will receive most mindful consideration from Central Asia's federal governments, and farming and vegetable oil processing plants are not only much cheaper than pipelines, they can be built quicker.


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

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