Central Asia's Vast Biofuel Opportunity

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

The recent revelations of a International Energy Administration whistleblower that the IEA may have distorted key oil forecasts under intense U.S. pressure is, if real (and whistleblowers hardly ever come forward to advance their professions), a slow-burning atomic 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 possibilities of discovering new reserves have the prospective to toss federal governments' long-term planning into turmoil.


Whatever the truth, rising long term worldwide demands appear certain to overtake production in the next decade, especially offered the high and increasing expenses of establishing 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 first barrels of oil are produced.


In such a situation, additives and substitutes such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising costs drive this technology to the leading edge, one of the richest prospective production locations has been completely ignored by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a significant player in the production of biofuels if adequate foreign financial investment can be obtained. Unlike Brazil, where biofuel is produced mostly 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 a rising manufacturer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly scant hydrocarbon resources relative to their Western Caspian next-door neighbors have mainly inhibited their ability to capitalize increasing global energy demands already. Mountainous Kyrgyzstan and Tajikistan stay mostly dependent for their electrical needs on their Soviet-era hydroelectric facilities, but their heightened need to generate winter electricity has actually caused autumnal and winter water discharges, in turn seriously impacting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream countries do have however is a Soviet-era legacy of farming 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 ended up being a major manufacturer of wheat. Based on my conversations with Central Asian federal government officials, provided the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lower extent Astana for those sturdy investors happy to bank on the future, specifically as a plant native to the area has currently shown itself in trials.


Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased scientific interest for its oleaginous qualities, with a number of European and American companies currently examining how to produce it in commercial amounts for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, ending up being the very first Asian carrier to experiment with flying on fuel derived 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 ability and prospective industrial viability.


As an alternative energy source, camelina has much to recommend 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 unsusceptible 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 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 extract 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 appealing concentration of omega-3 fatty acids that make it a particularly great livestock feed candidate that is recently gaining acknowledgment in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and contends 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 native to both Europe and Central Asia and barely a brand-new crop on the scene: historical evidence indicates it has been cultivated in Europe for a minimum of three centuries to produce both vegetable oil and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research, revealed a large range of outcomes of 330-1,700 lbs of seed per acre, with oil content differing 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 develop problems in germination to attain an optimum plant density of around 9 plants per sq. ft.


Camelina's potential could allow Uzbekistan to begin breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the country's efforts at agrarian reform given that achieving independence in 1991. Beginning in the late 19th century, the Russian government identified that Central Asia would become its cotton plantation to feed Moscow's growing fabric market. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise 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 actually ended up being self-sufficient in cotton; five decades later on it had become a major 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 each year, which generates more than $1 billion while making up approximately 60 percent of the country's hard cash earnings.


Beginning in the mid-1960s the Soviet federal 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 two main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, resulting in the remarkable shrinkage of the rivers' final destination, the Aral Sea. The Aral, when the world's fourth-largest inland sea with an area of 26,000 square miles, has diminished to one-quarter its initial 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 business 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 gather $230."


Central Asia has the land, the farms, the watering facilities and a modest wage scale in comparison to America or Europe - all that's missing out on is the foreign investment. U.S. investors have the money 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 enjoy the benefits of establishing it as a viable issue in Central Asia.


If the recent 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 show Asian interest, American financiers have the scholastic knowledge, if they want to follow the Silk Road into establishing a new market. Certainly anything that lessens water usage and pesticides, diversifies crop production and enhances the great deal of their agrarian population will get most mindful factor to consider from Central Asia's governments, and farming and veggie oil processing plants are not just much less expensive than pipelines, they can be developed quicker.


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

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