Central Asia's Vast Biofuel Opportunity
The current revelations of a International Energy Administration whistleblower that the IEA may have distorted key oil projections under extreme U.S. pressure is, if true (and whistleblowers rarely come forward to advance their careers), a slow-burning thermonuclear surge on future international oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decrease from existing oil fields while overplaying the chances of finding new reserves have the possible to toss federal governments' long-term preparation into turmoil.
Whatever the reality, rising long term worldwide demands appear specific to overtake production in the next decade, particularly given the high and rising expenses of developing 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 very first barrels of oil are produced.
In such a scenario, additives and replacements such as biofuels will play an ever-increasing role by stretching beleaguered production quotas. As market forces and rising rates drive this technology to the forefront, one of the wealthiest prospective production locations has actually been completely overlooked by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to become a significant player in the production of biofuels if sufficient foreign investment can be obtained. Unlike Brazil, where biofuel is manufactured mostly from sugarcane, or the United States, where it is mostly distilled from corn, Central Asia's ace resource is an indigenous plant, Camelina sativa.
Of the former Soviet Caucasian and Central Asian republics, those clustered around the shores of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom due to the fact that of record-high energy rates, while Turkmenistan is waiting in the wings as a rising producer 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 mostly hindered their capability to money in on rising international energy demands up to now. Mountainous Kyrgyzstan and Tajikistan stay mainly dependent for their electrical needs on their Soviet-era hydroelectric infrastructure, but their heightened requirement to produce winter season electrical energy has actually led to autumnal and winter season water discharges, in turn severely affecting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and .
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, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a major producer of wheat. Based upon my conversations with Central Asian federal government officials, provided the thirsty demands of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lower degree Astana for those durable financiers going to bet on the future, particularly as a plant native to the area has already proven itself in trials.
Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased scientific interest for its oleaginous qualities, with numerous European and American companies currently examining how to produce it in industrial amounts for biofuel. In January Japan Airlines carried out a historic test flight using camelina-based bio-jet fuel, ending up being the first Asian carrier to try out flying on fuel originated from sustainable feedstocks throughout a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month evaluation of camelina's functional efficiency capability and potential business practicality.
As an alternative energy source, camelina has much to recommend 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 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 ton (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 particles can be utilized for livestock silage. Camelina silage has a particularly appealing concentration of omega-3 fats that make it an especially great animals feed prospect that is recently acquiring recognition in the U.S. and Canada. Camelina is quick growing, produces its own natural herbicide (allelopathy) and completes well against 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 appropriate 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: historical proof suggests 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, currently the center of U.S. camelina research, showed a large range of outcomes of 330-1,700 pounds of seed per acre, with oil content varying in between 29 and 40%. Optimal seeding rates have been identified to be in the 6-8 pound per acre range, as the seeds' small size of 400,000 seeds per lb can produce issues in germination to attain an ideal plant density of around 9 plants per sq. ft.
Camelina's capacity might allow Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has distorted the country's efforts at agrarian reform because achieving self-reliance in 1991. Beginning in the late 19th century, the Russian government figured out that Central Asia would become its cotton plantation to feed Moscow's growing fabric market. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise ordered 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 ended up being self-sufficient in cotton; five years later it had actually ended up being a significant 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 heaps yearly, which brings in more than $1 billion while constituting approximately 60 percent of the country's tough currency income.
Beginning in the mid-1960s the Soviet federal government's regulations for Central Asian cotton production mainly 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 region's 2 main 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, once 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 ecological disasters.
And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's company 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 amass $230."
Central Asia has the land, the farms, the watering infrastructure and a modest wage scale in contrast to America or Europe - all that's missing out on is the foreign investment. U.S. financiers have the cash and access to the competence of America's land grant universities. What is specific is that biofuel's market share will grow gradually; less specific is who will profit of establishing it as a feasible issue in Central Asia.
If the current 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 suggest Asian interest, American investors have the academic expertise, if they are prepared to follow the Silk Road into developing 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 cautious consideration from Central Asia's federal governments, and farming and veggie oil processing plants are not just much less expensive than pipelines, they can be constructed quicker.
And jatropha curcas's biofuel capacity? Another story for another time.