Central Asia's Vast Biofuel Opportunity

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

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 rarely step forward to advance their careers), a slow-burning atomic surge on future global oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decrease from existing oil fields while overplaying the possibilities of finding brand-new reserves have the possible to throw federal governments' long-lasting preparation into mayhem.


Whatever the reality, increasing long term international needs seem particular to outstrip production in the next decade, specifically offered the high and rising expenses of developing 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 scenario, ingredients and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing rates drive this technology to the forefront, among the richest possible production locations has actually been completely ignored by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a major player in the production of biofuels if sufficient foreign investment can be obtained. 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 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 seen their economies boom since of record-high energy rates, 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 neighbors have actually largely hindered their ability to money in on increasing worldwide energy demands already. Mountainous Kyrgyzstan and Tajikistan remain mostly reliant for their electrical needs on their Soviet-era hydroelectric infrastructure, however their increased requirement to create winter season electrical energy has resulted in autumnal and winter season water discharges, in turn badly affecting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these 3 downstream nations 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 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 proposals to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser extent Astana for those durable investors happy to bet on the future, especially as a plant indigenous to the area has already shown 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 companies currently investigating how to produce it in commercial quantities for biofuel. In January Japan Airlines carried out a historical test flight utilizing camelina-based bio-jet fuel, ending up being the first Asian provider to try out flying on fuel derived from sustainable feedstocks during a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month assessment of camelina's operational performance capability and prospective industrial practicality.


As an alternative energy source, camelina has much to advise it. It has a high oil content low in saturated fat. In contrast to Central Asia's thirsty "king cotton," camelina is drought-resistant and unsusceptible to spring freezing, requires 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 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 consist of 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 utilized for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fats that make it a particularly great animals feed candidate that is simply now gaining acknowledgment in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and competes well versus weeds when an even crop is established. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could 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 hardly a new crop on the scene: archaeological proof indicates it has actually been cultivated in Europe for at least 3 centuries to produce both grease and animal fodder.


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


Camelina's capacity might allow Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has warped the nation's attempts at agrarian reform because 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 procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise ordered by Moscow to plant cotton, Uzbekistan in particular was singled out to produce "white gold."


By the end of the 1930s the Soviet Union had actually become self-sufficient in cotton; five 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 alternatives Tashkent stays wedded to cotton, producing about 3.6 million heaps annually, which brings in more than $1 billion while constituting roughly 60 percent of the nation's hard cash income.


Beginning in the mid-1960s the Soviet federal government's regulations 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 coordinators to divert ever-increasing volumes of water from the area's two primary rivers, the Amu Darya and Syr Darya, into ineffective watering canals, leading to the remarkable shrinking of the rivers' final destination, the Aral Sea. The Aral, as soon as the world's fourth-largest inland sea with an area of 26,000 square miles, has actually shrunk 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 described camelina's organization 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 contrast to America or Europe - all that's missing is the foreign financial investment. U.S. investors have the money and access to the competence of America's land grant universities. What is particular is that biofuel's market share will grow in time; less particular is who will profit of developing it as a viable issue in Central Asia.


If the recent past is anything to pass it is unlikely 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 financiers have the scholastic knowledge, if they want to follow the Silk Road into developing a brand-new market. Certainly anything that minimizes water usage and pesticides, diversifies crop production and enhances the great deal of their agrarian population will receive most careful consideration from Central Asia's federal governments, and farming and vegetable oil processing plants are not just more affordable than pipelines, they can be constructed faster.


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

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