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 intense U.S. pressure is, if true (and whistleblowers seldom come forward to advance their careers), a slow-burning atomic surge on future international oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decline from existing oil fields while overplaying the opportunities of finding brand-new reserves have the prospective to toss federal governments' long-term preparation into turmoil.
Whatever the truth, rising long term international needs appear specific to overtake production in the next years, especially provided the high and rising expenses 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 investments before their first barrels of oil are produced.
In such a situation, ingredients and alternatives such as biofuels will play an ever-increasing role by stretching beleaguered production quotas. As market forces and increasing prices drive this technology to the leading edge, one of the wealthiest prospective production locations has actually been totally ignored by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a major player in the production of if sufficient foreign 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 an indigenous plant, Camelina sativa.
Of the former 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 a rising producer of natural gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and reasonably little hydrocarbon resources relative to their Western Caspian next-door neighbors have mainly inhibited their ability to money in on rising worldwide energy needs up to now. Mountainous Kyrgyzstan and Tajikistan remain mainly reliant for their electrical needs on their Soviet-era hydroelectric facilities, however their heightened requirement to produce winter electrical energy has actually caused autumnal and winter water discharges, in turn badly impacting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream countries do have nevertheless 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 actually become a significant manufacturer of wheat. Based on my discussions with Central Asian federal government authorities, 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 level Astana for those hardy investors going to bet on the future, particularly as a plant indigenous to the region has actually currently shown 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 a number of European and American companies currently examining how to produce it in industrial quantities 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 carrier to try out 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 evaluation of camelina's functional performance ability and possible 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 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 major wheat exporter. Another perk 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 load (1000 kg) of camelina will contain 350 kg of oil, of which pushing can draw out 250 kg. Nothing in camelina production is wasted as after processing, the plant's particles can be used for livestock silage. Camelina silage has an especially attractive concentration of omega-3 fats that make it a particularly great animals feed prospect that is simply now getting acknowledgment in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and completes well versus weeds when an even crop is established. 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 household, is indigenous to both Europe and Central Asia and hardly a brand-new crop on the scene: archaeological evidence shows it has been cultivated in Europe for a minimum of 3 millennia to produce both grease and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research study, showed a large range of results of 330-1,700 pounds of seed per acre, with oil material differing between 29 and 40%. Optimal seeding rates have actually been identified to be in the 6-8 pound per acre variety, as the seeds' little size of 400,000 seeds per lb can create problems in germination to accomplish an optimum plant density of around 9 plants per sq. ft.
Camelina's capacity could enable Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has distorted the country's efforts at agrarian reform because accomplishing independence in 1991. Beginning in the late 19th century, the Russian federal government figured out 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 likewise purchased 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 ended up being self-sufficient in cotton; 5 years later it had actually 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 alternatives Tashkent remains wedded to cotton, producing about 3.6 million loads each year, which generates more than $1 billion while constituting roughly 60 percent of the country's hard cash earnings.
Beginning in the mid-1960s the Soviet government's directives for Central Asian cotton production mainly bankrupted the area's scarcest resource, water. Cotton uses about 3.5 acre feet of water per acre of plants, leading Soviet planners to divert ever-increasing volumes of water from the area's 2 primary rivers, the Amu Darya and Syr Darya, into ineffective watering canals, leading to the remarkable shrinkage of the rivers' final destination, the Aral Sea. The Aral, when the world's fourth-largest inland sea with a location of 26,000 square miles, has actually diminished to one-quarter its original size in among the 20th century's worst eco-friendly disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's service 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 is the foreign investment. U.S. financiers have the cash and access to the know-how of America's land grant universities. What is certain is that biofuel's market share will grow with time; less certain is who will reap the benefits of developing it as a feasible issue in Central Asia.
If the current past is anything to go by it is not likely to be American and European investors, fixated as they are on Caspian oil and gas.
But while the Japanese flight experiments indicate Asian interest, American investors have the scholastic knowledge, if they are willing to follow the Silk Road into developing a brand-new market. Certainly anything that reduces water use and pesticides, diversifies crop production and enhances the lot of their agrarian population will get most mindful factor to consider from Central Asia's federal governments, and farming and veggie oil processing plants are not just more affordable than pipelines, they can be developed quicker.
And jatropha's biofuel potential? Another story for another time.