Central Asia's Vast Biofuel Opportunity

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

The current discoveries of a International Energy Administration whistleblower that the IEA might have distorted crucial oil projections under intense U.S. pressure is, if real (and whistleblowers rarely 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 governments' long-term planning into chaos.


Whatever the truth, rising long term global demands appear particular to overtake production in the next years, particularly provided the high and rising expenses of developing new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in investments before their very first barrels of oil are produced.


In such a circumstance, additives and replacements such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and increasing costs drive this technology to the leading edge, one of the richest possible production locations has been absolutely neglected by financiers 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 enough foreign financial investment can be obtained. Unlike Brazil, where biofuel is produced mainly from sugarcane, or the United States, where it is mainly 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 coasts of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom because of record-high energy prices, 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 relatively little hydrocarbon resources relative to their Western Caspian next-door neighbors have actually mainly hindered their ability to cash in on rising international energy demands already. Mountainous Kyrgyzstan and Tajikistan stay mostly dependent for their electrical needs on their Soviet-era hydroelectric infrastructure, however their increased need to generate winter season electricity has actually resulted in autumnal and winter 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 legacy 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 ended up being a significant producer of wheat. Based on my conversations with Central Asian government officials, given the thirsty needs of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lower level Astana for those hardy investors ready to bank on the future, particularly as a plant indigenous 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 drawing in increased scientific interest for its oleaginous qualities, with several European and American business already examining how to produce it in business amounts for biofuel. In January Japan Airlines undertook a historic test flight using camelina-based bio-jet fuel, becoming the first Asian provider to explore flying on fuel stemmed from sustainable feedstocks throughout a one-hour presentation flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month examination of camelina's functional efficiency capability and possible industrial practicality.


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, needs less fertilizer and herbicides, and can be utilized as a rotation crop with wheat, which would make it of specific 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 sown 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 heap (1000 kg) of camelina will include 350 kg of oil, of which pressing can draw out 250 kg. Nothing in camelina production is lost as after processing, the plant's debris can be used for animals silage. Camelina silage has an especially attractive concentration of omega-3 fats that make it an especially fine animals feed prospect that is recently getting acknowledgment in the U.S. and Canada. Camelina is quick 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 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 barely a brand-new crop on the scene: historical evidence indicates it has actually been cultivated in Europe for a minimum of three millennia to produce both grease and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research study, showed a wide range of results of 330-1,700 pounds of seed per acre, with oil content differing in between 29 and 40%. Optimal seeding rates have been identified 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 accomplish an optimum plant density of around 9 plants per sq. ft.


Camelina's capacity could permit Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the nation's attempts at agrarian reform because accomplishing self-reliance 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 sow cotton, Uzbekistan in specific was singled out to produce "white gold."


By the end of the 1930s the Soviet Union had actually ended up being self-dependent in cotton; 5 decades later it had actually become a significant 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 might to diversify, in the absence of alternatives Tashkent remains wedded to cotton, producing about 3.6 million lots every year, which generates more than $1 billion while making up approximately 60 percent of the nation's tough currency 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 two main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, resulting in the significant shrinking of the rivers' last destination, the Aral Sea. The Aral, when 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 one of the 20th century's worst ecological catastrophes.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just 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 facilities and a modest wage scale in comparison to America or Europe - all that's missing out on is the foreign financial investment. U.S. financiers have the money and access to the know-how of America's land grant universities. What is particular is that biofuel's market share will grow with time; less particular is who will gain the advantages of establishing it as a viable concern in Central Asia.


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


But while the Japanese flight experiments show Asian interest, American financiers have the academic know-how, 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 enhances the lot of their agrarian population will receive most cautious consideration from Central Asia's federal governments, and farming and grease processing plants are not just much cheaper than pipelines, they can be developed more rapidly.


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

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