Central Asia's Vast Biofuel Opportunity
The current discoveries of a International Energy Administration whistleblower that the IEA might have distorted key oil forecasts under extreme U.S. pressure is, if true (and whistleblowers rarely step forward to advance their careers), a slow-burning thermonuclear surge on future global oil production. The Bush administration's actions in pressuring the IEA to underplay the rate of decrease from existing oil fields while overplaying the opportunities of finding new reserves have the possible to toss federal governments' long-lasting preparation into turmoil.
Whatever the truth, rising long term global needs seem specific to overtake production in the next decade, especially provided the high and increasing expenses of developing brand-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 first barrels of oil are produced.
In such a scenario, additives and substitutes such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing costs drive this technology to the forefront, one of the wealthiest possible production locations has been completely neglected by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a significant gamer in the production of biofuels if adequate foreign investment can be procured. Unlike Brazil, where biofuel is manufactured largely from sugarcane, or the United States, where it is mainly 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 shores of the Caspian, Azerbaijan and Kazakhstan have actually 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 isolation and fairly little hydrocarbon resources relative to their Western Caspian next-door neighbors have actually largely prevented their ability to cash in on increasing international energy demands up to now. Mountainous Kyrgyzstan and Tajikistan remain mainly reliant for their electrical needs on their Soviet-era hydroelectric infrastructure, but their increased need to produce winter season electricity 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 three downstream nations do have nevertheless is a Soviet-era tradition of agricultural production, which in Uzbekistan's and Turkmenistan case was largely directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has become a major manufacturer of wheat. Based on my conversations with Central Asian federal government officials, provided the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lesser degree Astana for those hardy financiers ready to bank on the future, specifically as a plant native to the area has already shown itself in trials.
Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased scientific interest for its oleaginous qualities, with several European and American companies already investigating how to produce it in industrial amounts for biofuel. In January Japan Airlines carried out a historical test flight using camelina-based bio-jet fuel, ending up being the very first Asian carrier to try out 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 examination of camelina's operational performance capability and prospective business practicality.
As an alternative energy source, camelina has much to suggest it. It has a high oil content 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 used as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's major wheat exporter. Another reward 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 pressing can draw out 250 kg. Nothing in camelina production is wasted as after processing, the plant's debris can be utilized for livestock silage. Camelina silage has a particularly appealing concentration of omega-3 fatty acids 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 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 an ideal 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 family, is native to both Europe and Central Asia and hardly a new crop on the scene: historical evidence indicates it has actually been cultivated in Europe for a minimum of three millennia to produce both vegetable oil and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research, showed a large range of results of 330-1,700 pounds of seed per acre, with oil content varying in between 29 and 40%. Optimal seeding rates have actually been determined to be in the 6-8 lb per acre variety, as the seeds' little size of 400,000 seeds per pound can produce issues in germination to achieve an ideal plant density of around 9 plants per sq. ft.
Camelina's capacity might allow Uzbekistan to begin breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has warped the country's efforts at agrarian reform given that accomplishing self-reliance in 1991. Beginning in the late 19th century, the Russian 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 likewise ordered 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-dependent in cotton; 5 years later on 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 lack of options Tashkent remains wedded to cotton, producing about 3.6 million loads every year, which generates more than $1 billion while constituting approximately 60 percent of the hard cash income.
Beginning in the mid-1960s the Soviet federal government's directives for Central Asian cotton production mainly bankrupted the area's scarcest resource, water. Cotton utilizes about 3.5 acre feet of water per acre of plants, leading Soviet coordinators to divert ever-increasing volumes of water from the area's two primary rivers, the Amu Darya and Syr Darya, into inefficient watering canals, resulting in the significant shrinking of the rivers' last destination, 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 initial size in among the 20th century's worst ecological catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently described camelina's organization 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 watering facilities and a modest wage scale in contrast to America or Europe - all that's missing out on 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 in time; less particular is who will enjoy the benefits of establishing it as a practical issue in Central Asia.
If the current past is anything to go by it is not likely to be American and European financiers, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments show Asian interest, American investors have the academic knowledge, if they want to follow the Silk Road into developing a brand-new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and improves the great deal of their agrarian population will get most careful consideration from Central Asia's governments, and farming and grease processing plants are not just more affordable than pipelines, they can be built quicker.
And jatropha's biofuel potential? Another story for another time.