Central Asia's Vast Biofuel Opportunity

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The recent revelations of a International Energy Administration whistleblower that the IEA may have distorted key oil forecasts under intense U.S.

The recent revelations of a International Energy Administration whistleblower that the IEA may have misshaped essential oil projections under extreme U.S. pressure is, if real (and whistleblowers seldom step 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 chances of finding brand-new reserves have the potential to toss governments' long-term planning into turmoil.


Whatever the reality, rising long term worldwide needs appear particular to outstrip production in the next years, particularly provided the high and rising costs of establishing new super-fields such as Kazakhstan's offshore Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will require billions in investments before their very 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 increasing prices drive this technology to the forefront, among the wealthiest potential production locations has actually been absolutely overlooked by financiers already - 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 adequate foreign investment can be obtained. Unlike Brazil, where biofuel is produced mainly from sugarcane, or the United States, where it is primarily distilled from corn, Central Asia's ace resource is a native plant, Camelina sativa.


Of the former Soviet Caucasian and Central Asian republics, those clustered around the coasts of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom since of record-high energy rates, while Turkmenistan is waiting in the wings as an increasing producer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and relatively little hydrocarbon resources relative to their Western Caspian neighbors have actually largely inhibited their ability to capitalize rising international energy demands already. Mountainous Kyrgyzstan and Tajikistan stay largely dependent for their electrical needs on their Soviet-era hydroelectric facilities, but their heightened requirement to generate winter electrical power has led to autumnal and winter water discharges, in turn seriously impacting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream countries do have nevertheless is a Soviet-era legacy 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 become a major manufacturer of wheat. Based on my discussions 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 lesser level Astana for those hardy investors ready to bank on the future, particularly as a plant native to the area has actually already proven itself in trials.


Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is attracting increased clinical interest for its oleaginous qualities, with several European and American business already investigating how to produce it in industrial quantities for biofuel. In January Japan Airlines undertook a historical test flight using camelina-based bio-jet fuel, ending up being the very first Asian carrier to explore 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 operational efficiency capability and potential industrial practicality.


As an alternative energy source, camelina has much to suggest 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 sown with camelina can produce up to 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 utilized for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fatty acids that make it an especially fine livestock feed prospect that is recently getting acknowledgment in the U.S. and Canada. Camelina is quick 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 appropriate 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 barely a brand-new crop on the scene: historical proof indicates it has been cultivated in Europe for at least three millennia to produce both vegetable oil and animal fodder.


Field trials of production in Montana, presently the center of U.S. camelina research, revealed a wide range 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 variety, as the seeds' little size of 400,000 seeds per pound can create problems in germination to accomplish an optimal plant density of around 9 plants per sq. ft.


Camelina's potential might permit Uzbekistan to start breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has deformed the country's attempts at agrarian reform since achieving independence in 1991. Beginning in the late 19th century, the Russian federal government determined 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 purchased by Moscow to plant cotton, Uzbekistan in specific was singled out to produce "white gold."


By the end of the 1930s the Soviet Union had become self-sufficient in cotton; five years later on it had become a significant 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 might to diversify, in the lack of options Tashkent remains wedded to cotton, producing about 3.6 million tons every year, which brings in more than $1 billion while making up approximately 60 percent of the nation's hard cash income.


Beginning in the mid-1960s the Soviet government's regulations for Central Asian cotton production mostly bankrupted the region's scarcest resource, water. Cotton utilizes 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 main rivers, the Amu Darya and Syr Darya, into ineffective watering canals, resulting in the significant shrinkage of the rivers' final location, the Aral Sea. The Aral, as soon as the world's fourth-largest inland sea with a location of 26,000 square miles, has shrunk to one-quarter its original size in one of the 20th century's worst eco-friendly disasters.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently explained camelina's business design 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 irrigation facilities and a modest wage scale in contrast to America or Europe - all that's missing out on is the foreign financial investment. U.S. investors have the cash and access to the competence of America's land grant universities. What is certain is that biofuel's market share will grow with time; less specific is who will profit of establishing it as a practical 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 indicate Asian interest, American financiers have the academic proficiency, if they are prepared to follow the Silk Road into developing a brand-new market. Certainly anything that decreases water use and pesticides, diversifies crop production and enhances the lot of their agrarian population will get most mindful factor to consider from Central Asia's governments, and farming and grease processing plants are not only more affordable than pipelines, they can be constructed quicker.


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

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