Central Asia's Vast Biofuel Opportunity
The current revelations of a International Energy Administration whistleblower that the IEA may have distorted crucial oil forecasts under extreme U.S. pressure is, if real (and whistleblowers hardly ever step forward to advance their careers), a slow-burning atomic explosion on future worldwide oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decrease from existing oil fields while overplaying the possibilities of discovering brand-new reserves have the prospective to toss governments' long-term planning into turmoil.
Whatever the reality, rising long term global needs appear particular to overtake production in the next years, especially given the high and increasing 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 very first barrels of oil are produced.
In such a circumstance, ingredients and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing prices drive this innovation to the forefront, among the wealthiest prospective production locations has been absolutely overlooked by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a major player in the production of biofuels if enough foreign investment can be acquired. 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 rates, while Turkmenistan is waiting in the wings as an increasing manufacturer of gas.
Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and relatively scant hydrocarbon resources relative to their Western Caspian neighbors have actually mainly hindered their capability to cash in on increasing worldwide energy needs up to now. Mountainous Kyrgyzstan and Tajikistan stay largely reliant for their electrical requirements on their Soviet-era hydroelectric infrastructure, however their heightened requirement to create winter electrical energy has actually resulted in autumnal and winter water discharges, in turn seriously affecting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.
What these 3 downstream countries do have nevertheless is a Soviet-era tradition of farming 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 ended up being a significant manufacturer of wheat. Based on my conversations with Central Asian government authorities, offered 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 lower degree Astana for those hardy financiers prepared to bank on the future, specifically as a plant indigenous to the region has actually already shown itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is drawing in increased clinical interest for its oleaginous qualities, with several European and American companies currently investigating how to produce it in commercial amounts for biofuel. In January Japan Airlines carried out a historic test flight using camelina-based bio-jet fuel, becoming the very first Asian carrier to try out flying on fuel stemmed from sustainable feedstocks throughout a one-hour presentation flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month evaluation of camelina's functional performance ability and potential business practicality.
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 used as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's major 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 lot (1000 kg) of camelina will consist of 350 kg of oil, of which pressing can draw out 250 kg. Nothing in camelina production is squandered as after processing, the plant's particles can be utilized for animals silage. Camelina silage has a particularly attractive concentration of omega-3 fats that make it an especially great animals feed prospect that is simply now getting recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and competes 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 ideal 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 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, showed a large range of outcomes of 330-1,700 lbs of seed per acre, with oil material varying between 29 and 40%. Optimal seeding rates have been determined to be in the 6-8 lb per acre range, as the seeds' little size of 400,000 seeds per pound can develop issues in germination to attain an ideal plant density of around 9 plants per sq. ft.
Camelina's capacity could permit Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has deformed the nation's attempts at agrarian reform given that achieving 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 accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also 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; five years later it had become 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 may to diversify, in the lack of alternatives Tashkent stays wedded to cotton, producing about 3.6 million loads annually, which brings in more than $1 billion while making up around 60 percent of the nation's hard cash earnings.
Beginning in the mid-1960s the Soviet government's directives for Central Asian cotton production mainly bankrupted the region's scarcest resource, water. Cotton utilizes about 3.5 acre feet of water per acre of plants, leading Soviet organizers to divert ever-increasing volumes of water from the area's two main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, resulting in 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 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 recently described camelina's business 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 garner $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. 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 gradually; less particular is who will profit of establishing it as a feasible 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 investors have the scholastic knowledge, if they want to follow the Silk Road into establishing a brand-new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and enhances the lot of their agrarian population will get most careful factor to consider from Central Asia's governments, and farming and vegetable oil processing plants are not only more affordable than pipelines, they can be constructed faster.
And jatropha curcas's biofuel potential? Another story for another time.