Central Asia's Vast Biofuel Opportunity
The recent revelations of a International Energy Administration whistleblower that the IEA might have distorted key oil projections under extreme U.S. pressure is, if real (and whistleblowers rarely step forward to advance their careers), a slow-burning thermonuclear explosion on future global oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decline from existing oil fields while overplaying the chances of finding new reserves have the potential to toss federal governments' long-lasting planning into turmoil.
Whatever the reality, rising long term worldwide needs appear particular to outstrip production in the next years, specifically offered the high and rising costs of developing new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will require billions in financial investments before their first barrels of oil are produced.
In such a circumstance, additives and substitutes such as biofuels will play an ever-increasing role by extending beleaguered production quotas. As market forces and rising costs drive this innovation to the leading edge, among the richest prospective production locations has been absolutely overlooked by investors 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 sufficient foreign financial investment can be obtained. Unlike Brazil, where biofuel is made 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 costs, 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 mostly prevented their capability to money in on increasing worldwide energy demands already. Mountainous Kyrgyzstan and Tajikistan remain mostly dependent for their electrical needs on their Soviet-era hydroelectric infrastructure, but their increased requirement to produce winter electricity has caused autumnal and winter season water discharges, in turn seriously affecting the farming of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream nations do have however is a Soviet-era legacy of agricultural production, which in Uzbekistan's and Turkmenistan case was mainly directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a major producer of wheat. Based on my discussions with Central Asian government officials, given the thirsty demands of cotton monoculture, to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lower level Astana for those durable investors ready to wager on the future, specifically as a plant indigenous to the area has actually currently proven 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 a number of European and American business already examining how to produce it in commercial quantities for biofuel. In January Japan Airlines carried out a historic test flight utilizing camelina-based bio-jet fuel, becoming the very first Asian carrier to experiment with flying on fuel obtained from sustainable feedstocks throughout a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month evaluation of camelina's functional efficiency ability and possible business viability.
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 immune to spring freezing, needs less fertilizer and herbicides, and can be used as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's major wheat exporter. Another bonus 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 ton (1000 kg) of camelina will consist of 350 kg of oil, of which pushing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's debris can be used for livestock silage. Camelina silage has a particularly appealing concentration of omega-3 fatty acids that make it an especially great animals feed prospect that is recently gaining recognition 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 a perfect low-input crop suitable for bio-diesel production, due to its lower requirements for nitrogen fertilizer than oilseed rape."
Camelina, a branch of the mustard family, is native to both Europe and Central Asia and hardly a brand-new crop on the scene: archaeological evidence shows it has been cultivated in Europe for a minimum of three centuries to produce both grease and animal fodder.
Field trials of production in Montana, currently the center of U.S. camelina research study, revealed a wide variety of results of 330-1,700 lbs of seed per acre, with oil content differing in between 29 and 40%. Optimal seeding rates have been figured out to be in the 6-8 pound per acre variety, as the seeds' little size of 400,000 seeds per lb can produce problems in germination to achieve an ideal plant density of around 9 plants per sq. ft.
Camelina's capacity could allow 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 considering that attaining self-reliance in 1991. Beginning in the late 19th century, the Russian federal government identified that Central Asia would become its cotton plantation to feed Moscow's growing textile market. The procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise bought 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 become self-sufficient in cotton; five years later on it had 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 absence of alternatives Tashkent stays wedded to cotton, producing about 3.6 million lots yearly, which brings in more than $1 billion while making up roughly 60 percent of the country's tough currency income.
Beginning in the mid-1960s the Soviet government's regulations for Central Asian cotton production largely bankrupted the area's scarcest resource, water. Cotton utilizes 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 primary rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, leading to the dramatic shrinking of the rivers' final location, the Aral Sea. The Aral, as soon as the world's fourth-largest inland sea with an area of 26,000 square miles, has shrunk 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 just recently described camelina's company 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 amass $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 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 profit of establishing it as a viable concern in Central Asia.
If the recent past is anything to pass it is not likely to be American and European investors, focused as they are on Caspian oil and gas.
But while the Japanese flight experiments suggest Asian interest, American investors have the scholastic competence, if they want to follow the Silk Road into developing a new market. Certainly anything that minimizes water use and pesticides, diversifies crop production and enhances the great deal of their agrarian population will receive 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 more rapidly.
And jatropha curcas's biofuel capacity? Another story for another time.