Central Asia's Vast Biofuel Opportunity

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The recent discoveries of a International Energy Administration whistleblower that the IEA may have distorted key oil projections under extreme U.S.

The current revelations of a International Energy Administration whistleblower that the IEA might have misshaped essential oil forecasts under extreme U.S. pressure is, if true (and whistleblowers seldom come forward to advance their professions), a slow-burning thermonuclear explosion on future international oil production. The Bush administration's actions in pressuring the IEA to underplay the rate of decline from existing oil fields while overplaying the opportunities of finding new reserves have the prospective to toss federal governments' long-lasting planning into mayhem.


Whatever the truth, rising long term international needs seem particular to overtake production in the next years, particularly provided the high and rising expenses of developing 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 very first barrels of oil are produced.


In such a circumstance, additives and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing prices drive this innovation to the leading edge, one of the richest possible production areas has actually been completely neglected by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a significant gamer in the production of biofuels if adequate foreign investment can be obtained. Unlike Brazil, where biofuel is made largely 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 coasts of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom since of record-high energy prices, while Turkmenistan is waiting in the wings as a rising 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 neighbors have actually mainly inhibited their capability to capitalize rising international energy needs up to now. Mountainous Kyrgyzstan and Tajikistan remain mostly dependent for their electrical needs on their Soviet-era hydroelectric infrastructure, however their increased need to create winter season electrical power has led to autumnal and winter water discharges, in turn significantly affecting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these 3 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, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a significant manufacturer of wheat. Based on my conversations with Central Asian government authorities, given the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lower degree Astana for those sturdy financiers ready to bank on the future, specifically as a plant indigenous 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 attracting increased clinical interest for its oleaginous qualities, with numerous European and American companies already investigating how to produce it in commercial quantities for biofuel. In January Japan Airlines carried out a historic test flight utilizing camelina-based bio-jet fuel, becoming the very first Asian carrier to try out 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 evaluation of camelina's operational efficiency capability and possible commercial practicality.


As an alternative energy source, camelina has much to recommend 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, needs 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 significant wheat exporter. Another reward of camelina is its tolerance of poorer, less fertile conditions. An acre planted 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 lot (1000 kg) of camelina will consist of 350 kg of oil, of which pressing can draw out 250 kg. Nothing in camelina production is squandered as after processing, the plant's particles can be utilized for animals silage. Camelina silage has an especially appealing concentration of omega-3 fatty acids that make it an especially great livestock feed prospect that is just now getting 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 established. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina might 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 native to both Europe and Central Asia and barely a new crop on the scene: archaeological proof indicates it has been cultivated in Europe for a minimum of 3 centuries to produce both grease and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research study, revealed a wide variety of outcomes of 330-1,700 pounds of seed per acre, with oil content varying in between 29 and 40%. Optimal seeding rates have actually been figured out to be in the 6-8 pound per acre range, as the seeds' small size of 400,000 seeds per lb can develop issues in germination to accomplish an optimal plant density of around 9 plants per sq. ft.


Camelina's capacity might allow Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the nation's efforts at agrarian reform considering that attaining self-reliance in 1991. Beginning in the late 19th century, the Russian federal government determined that Central Asia would become its cotton plantation to feed Moscow's growing textile industry. The process was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also 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-dependent in cotton; 5 decades later it had become 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 may to diversify, in the absence of options Tashkent remains wedded to cotton, producing about 3.6 million heaps every year, which brings in more than $1 billion while making up approximately 60 percent of the country's hard cash income.


Beginning in the mid-1960s the Soviet federal government's instructions for Central Asian cotton production mostly bankrupted the region's scarcest resource, water. Cotton uses 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 watering canals, leading to the dramatic shrinking 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 shrunk to one-quarter its initial size in among the 20th century's worst ecological disasters.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently explained camelina's service 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 facilities and a modest wage scale in contrast to America or Europe - all that's missing is the foreign financial investment. U.S. financiers have the money 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 particular is who will profit of developing it as a viable issue in Central Asia.


If the current past is anything to pass 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 indicate Asian interest, American investors have the academic competence, if they are ready to follow the Silk Road into developing a brand-new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and enhances the lot of their agrarian population will receive most mindful factor to consider from Central Asia's governments, and farming and grease processing plants are not only more affordable than pipelines, they can be built more rapidly.


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

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