Central Asia's Vast Biofuel Opportunity
The current revelations of a International Energy Administration whistleblower that the IEA may have misshaped key oil forecasts under intense U.S. pressure is, if true (and whistleblowers hardly ever come forward to advance their professions), a slow-burning thermonuclear surge on future worldwide oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decline from fields while overplaying the chances of discovering brand-new reserves have the prospective to throw governments' long-lasting preparation into turmoil.
Whatever the truth, rising long term global demands appear certain to outstrip production in the next years, particularly given the high and rising expenses of establishing brand-new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in investments before their first barrels of oil are produced.
In such a situation, ingredients and substitutes such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing costs drive this innovation to the leading edge, one of the richest potential production locations has been completely ignored by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a significant player in the production of biofuels if adequate foreign investment can be obtained. Unlike Brazil, where biofuel is produced mostly from sugarcane, or the United States, where it is primarily 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 because of record-high energy costs, while Turkmenistan is waiting in the wings as a rising manufacturer of 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 mostly inhibited their ability to cash in on rising international energy demands up to now. Mountainous Kyrgyzstan and Tajikistan stay mainly reliant for their electrical requirements on their Soviet-era hydroelectric facilities, but their increased need to generate winter electrical power has actually led to autumnal and winter water discharges, in turn significantly impacting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these three downstream countries do have however is a Soviet-era tradition of agricultural production, which in Uzbekistan's and Turkmenistan case was largely 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 upon my discussions 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 extent Astana for those hardy investors going to bet on the future, particularly as a plant native to the area has actually already proven itself in trials.
Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased scientific interest for its oleaginous qualities, with several European and American companies already investigating how to produce it in industrial 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 explore 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 functional performance ability and possible industrial practicality.
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, 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 significant wheat exporter. Another reward 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 load (1000 kg) of camelina will contain 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 attractive concentration of omega-3 fats that make it an especially fine animals feed candidate that is simply now gaining 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 developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina might be an ideal low-input crop ideal 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 new crop on the scene: historical evidence shows it has been cultivated in Europe for at least three centuries to produce both veggie oil and animal fodder.
Field trials of production in Montana, presently the center of U.S. camelina research, revealed a vast array of outcomes of 330-1,700 pounds of seed per acre, with oil material varying in between 29 and 40%. Optimal seeding rates have actually been determined to be in the 6-8 pound per acre variety, as the seeds' small size of 400,000 seeds per pound can create problems in germination to attain an optimal plant density of around 9 plants per sq. ft.
Camelina's capacity might enable Uzbekistan to begin breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the country's attempts at agrarian reform considering that 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 textile industry. The process was accelerated 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 become self-dependent in cotton; 5 years later on it had 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 may to diversify, in the absence of alternatives Tashkent stays wedded to cotton, producing about 3.6 million loads yearly, 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 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 region's two main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, resulting in the significant shrinkage of the rivers' final destination, the Aral Sea. The Aral, as soon as the world's fourth-largest inland sea with a location of 26,000 square miles, has shrunk to one-quarter its original size in among the 20th century's worst eco-friendly catastrophes.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently described 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 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 out on is the foreign financial investment. U.S. financiers have the money and access to the knowledge of America's land grant universities. What is specific is that biofuel's market share will grow over time; less certain is who will profit of developing 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 financiers, focused as they are on Caspian oil and gas.
But while the Japanese flight experiments suggest Asian interest, American financiers have the scholastic expertise, if they want to follow the Silk Road into establishing a new market. Certainly anything that decreases water use and pesticides, diversifies crop production and improves the great deal of their agrarian population will get most mindful consideration from Central Asia's federal governments, and farming and grease processing plants are not just much less expensive than pipelines, they can be developed faster.
And jatropha's biofuel capacity? Another story for another time.