Central Asia's Vast Biofuel Opportunity

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The current discoveries of a International Energy Administration whistleblower that the IEA may have misshaped crucial oil projections under extreme U.S.

The recent revelations of a International Energy Administration whistleblower that the IEA may have distorted crucial oil projections under extreme U.S. pressure is, if true (and whistleblowers seldom come forward to advance their careers), a slow-burning atomic 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 possibilities of finding brand-new reserves have the possible to toss federal governments' long-term preparation into chaos.


Whatever the truth, increasing long term worldwide needs appear specific to overtake production in the next decade, especially offered the high and increasing costs of establishing 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 situation, additives and replacements such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising costs drive this innovation to the leading edge, one of the richest prospective production areas has actually been completely ignored by financiers up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to end up being a major gamer in the production of biofuels if enough foreign financial investment can be obtained. Unlike Brazil, where biofuel is produced mainly from sugarcane, or the United States, where it is mainly 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 due to the fact that of record-high energy prices, while Turkmenistan is waiting in the wings as an increasing manufacturer of gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly little hydrocarbon resources relative to their Western Caspian neighbors have largely inhibited their ability to cash in on increasing global energy needs already. Mountainous Kyrgyzstan and Tajikistan stay mostly dependent for their electrical needs on their Soviet-era hydroelectric facilities, but their increased need to create winter season electrical power has actually caused autumnal and winter season water discharges, in turn significantly affecting the agriculture of their western downstream next-door 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 largely 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 upon my conversations with Central Asian federal government officials, 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 lesser level Astana for those hardy investors ready to bet on the future, especially as a plant native to the region has currently 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 numerous European and American business already investigating how to produce it in commercial quantities for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, becoming the first Asian carrier to experiment with flying on fuel stemmed from sustainable feedstocks during a one-hour presentation flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month evaluation of camelina's operational efficiency capability and prospective commercial practicality.


As an alternative energy source, camelina has much to recommend it. It has a high oil material low in hydrogenated fat. In contrast to Central Asia's thirsty "king cotton," camelina is drought-resistant and immune to spring freezing, requires 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 significant wheat exporter. Another reward of camelina is its tolerance of poorer, less fertile conditions. An acre planted 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 include 350 kg of oil, of which pressing can draw out 250 kg. Nothing in camelina production is lost as after processing, the plant's particles can be utilized for livestock silage. Camelina silage has a particularly attractive concentration of omega-3 fatty acids that make it an especially fine animals feed prospect that is simply now getting acknowledgment in the U.S. and Canada. Camelina is fast 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 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 native to both Europe and Central Asia and barely a new crop on the scene: archaeological evidence shows 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, revealed a vast array of results of 330-1,700 pounds of seed per acre, with oil material 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 achieve an optimum plant density of around 9 plants per sq. ft.


Camelina's potential could permit Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has distorted the nation's efforts at agrarian reform given that accomplishing independence in 1991. Beginning in the late 19th century, the Russian government identified that Central Asia would become its cotton plantation to feed Moscow's growing textile industry. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise purchased 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 ended up being self-sufficient in cotton; 5 decades later it had 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 lack of alternatives Tashkent stays wedded to cotton, producing about 3.6 million loads every year, which generates more than $1 billion while making up approximately 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 largely bankrupted the region's scarcest resource, water. Cotton uses 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 primary 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, once the world's fourth-largest inland sea with a location of 26,000 square miles, has actually shrunk to one-quarter its initial size in among the 20th century's worst environmental disasters.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently explained 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 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 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 over time; less specific is who will gain the benefits 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 show Asian interest, American financiers have the scholastic proficiency, if they want to follow the Silk Road into establishing a new market. Certainly anything that decreases water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will get most cautious factor to consider from Central Asia's governments, and farming and grease processing plants are not just more affordable than pipelines, they can be built quicker.


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

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