Central Asia's Vast Biofuel Opportunity
The recent revelations of a International Energy Administration whistleblower that the IEA might have distorted crucial oil forecasts under extreme U.S. pressure is, if real (and whistleblowers hardly ever step forward to advance their professions), a slow-burning thermonuclear explosion 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 possible to toss governments' long-term preparation into mayhem.
Whatever the truth, increasing long term global demands appear specific to outstrip production in the next years, particularly provided the high and increasing costs 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 investments before their very first barrels of oil are produced.
In such a situation, additives and replacements such as biofuels will play an ever-increasing role by extending beleaguered production quotas. As market forces and rising rates drive this technology to the leading edge, among the richest prospective production locations has actually been absolutely neglected by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a major player in the production of biofuels if enough foreign investment can be procured. Unlike Brazil, where biofuel is made 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 coasts of the Caspian, Azerbaijan and Kazakhstan have seen their economies boom due to the fact that of record-high energy costs, while Turkmenistan is waiting in the wings as a rising manufacturer 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 inhibited their ability to capitalize rising international energy needs already. Mountainous Kyrgyzstan and Tajikistan remain largely dependent for their electrical needs on their Soviet-era hydroelectric infrastructure, however their increased requirement to generate winter electrical power has actually caused autumnal and winter season water discharges, in turn severely affecting 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 farming production, which in Uzbekistan's and Turkmenistan case was mostly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a significant producer of wheat. Based upon my conversations with Central Asian federal government authorities, provided 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 extent Astana for those hardy financiers ready to bank on the future, specifically as a plant native to the area 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 scientific interest for its oleaginous qualities, with several European and American business already investigating how to it in business quantities for biofuel. In January Japan Airlines undertook a historical test flight utilizing camelina-based bio-jet fuel, ending up being the first Asian provider to experiment with 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 assessment of camelina's operational efficiency capability and possible industrial viability.
As an alternative energy source, camelina has much to suggest 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 perk of camelina is its tolerance of poorer, less fertile conditions. An acre sown 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 lot (1000 kg) of camelina will contain 350 kg of oil, of which pressing can draw out 250 kg. Nothing in camelina production is squandered as after processing, the plant's debris can be utilized for animals silage. Camelina silage has a particularly appealing concentration of omega-3 fatty acids that make it a particularly great animals feed prospect that is just now acquiring recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and completes 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 indigenous to both Europe and Central Asia and hardly a brand-new crop on the scene: historical evidence indicates it has actually been cultivated in Europe for at least 3 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 variety of outcomes of 330-1,700 pounds of seed per acre, with oil content differing between 29 and 40%. Optimal seeding rates have been identified to be in the 6-8 pound per acre variety, as the seeds' small size of 400,000 seeds per lb can produce issues in germination to accomplish an optimal plant density of around 9 plants per sq. ft.
Camelina's capacity could permit Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the nation's attempts at agrarian reform since attaining self-reliance in 1991. Beginning in the late 19th century, the Russian government figured out 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 likewise 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 ended up being self-dependent in cotton; 5 decades later on it had actually ended up being 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 might to diversify, in the lack of options Tashkent stays wedded to cotton, producing about 3.6 million loads each year, which brings in more than $1 billion while making up around 60 percent of the nation's hard currency earnings.
Beginning in the mid-1960s the Soviet federal government's instructions for Central Asian cotton production largely bankrupted the area's scarcest resource, water. Cotton uses 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 main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, resulting in the remarkable shrinking of the rivers' final location, the Aral Sea. The Aral, when the world's fourth-largest inland sea with an area of 26,000 square miles, has actually diminished 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 just recently explained camelina's organization design 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 infrastructure 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 proficiency of America's land grant universities. What is certain is that biofuel's market share will grow with time; less certain is who will gain the advantages of establishing it as a feasible concern in Central Asia.
If the current past is anything to pass 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 financiers have the scholastic proficiency, if they want to follow the Silk Road into establishing a brand-new market. Certainly anything that decreases water use and pesticides, diversifies crop production and improves the lot of their agrarian population will get most mindful consideration from Central Asia's governments, and farming and vegetable oil processing plants are not only more affordable than pipelines, they can be built quicker.
And jatropha's biofuel potential? Another story for another time.