Central Asia's Vast Biofuel Opportunity

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

The current revelations of a International Energy Administration whistleblower that the IEA may have distorted crucial oil projections under intense U.S. pressure is, if real (and whistleblowers rarely step forward to advance their careers), a slow-burning thermonuclear surge on future global oil production. The Bush administration's actions in pressing the IEA to underplay the rate of decrease from existing oil fields while overplaying the possibilities of discovering new reserves have the potential to toss federal governments' long-term planning into mayhem.


Whatever the reality, increasing long term worldwide demands appear certain to overtake production in the next years, specifically provided 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 first barrels of oil are produced.


In such a situation, ingredients and alternatives such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and increasing costs drive this technology to the forefront, among the richest prospective production areas 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 significant player in the production of biofuels if sufficient foreign financial investment can be obtained. Unlike Brazil, where biofuel is produced largely 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 seen their economies boom because of record-high energy rates, while Turkmenistan is waiting in the wings as a rising 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 largely hindered their capability to money in on rising worldwide energy demands up to now. Mountainous Kyrgyzstan and Tajikistan remain largely dependent for their electrical requirements on their Soviet-era hydroelectric facilities, but their increased requirement to produce winter electrical power has resulted in autumnal and winter season water discharges, in turn significantly impacting the farming of their western downstream 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 mostly directed towards cotton production, while Kazakhstan, beginning in the 1950s with Khrushchev's "Virgin Lands" programs, has ended up being a major producer of wheat. Based on my conversations with Central Asian government officials, given the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have excellent appeal in Astana, Ashgabat and Tashkent and to a lower degree Astana for those sturdy financiers ready to bet on the future, especially as a plant native to the area has currently shown itself in trials.


Known in the West as incorrect flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased clinical interest for its oleaginous qualities, with several European and American companies currently investigating how to produce it in business quantities for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, ending up being the very first Asian carrier to try out flying on fuel derived from sustainable feedstocks during a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month evaluation of camelina's operational efficiency capability and prospective business practicality.


As an alternative energy source, camelina has much to advise 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 unsusceptible to spring freezing, requires less fertilizer and herbicides, and can be utilized as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's major wheat exporter. Another benefit 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 lot (1000 kg) of camelina will contain 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is squandered as after processing, the plant's debris can be used for animals silage. Camelina silage has an especially appealing concentration of omega-3 fatty acids that make it a particularly fine animals feed prospect that is recently getting recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and completes well versus weeds when an even crop is developed. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could 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 household, is native to both Europe and Central Asia and hardly a brand-new crop on the scene: historical proof shows it has been cultivated in Europe for a minimum of three millennia to produce both veggie oil and animal fodder.


Field trials of production in Montana, presently the center of U.S. camelina research, showed a vast array of results of 330-1,700 lbs of seed per acre, with oil material varying between 29 and 40%. Optimal seeding rates have been identified to be in the 6-8 lb per acre range, as the seeds' little size of 400,000 seeds per pound can create issues in germination to attain an ideal 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 warped the nation's attempts at agrarian reform since accomplishing independence 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 fabric industry. The process was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also bought 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 actually ended up being self-dependent in cotton; 5 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 may to diversify, in the lack of alternatives Tashkent stays wedded to cotton, producing about 3.6 million lots each year, which brings in more than $1 billion while making up around 60 percent of the nation's hard cash income.


Beginning in the mid-1960s the Soviet government's instructions for Central Asian cotton production mainly bankrupted the area'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 area's two primary rivers, the Amu Darya and Syr Darya, into inefficient watering canals, leading to the significant shrinking of the rivers' final location, the Aral Sea. The Aral, once the world's fourth-largest inland sea with an area of 26,000 square miles, has actually diminished 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 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 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 proficiency of America's land grant universities. What is specific is that biofuel's market share will grow gradually; less particular is who will profit of developing it as a viable issue in Central Asia.


If the current 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 suggest Asian interest, American investors have the academic knowledge, if they are willing to follow the Silk Road into establishing a new market. Certainly anything that decreases water usage and pesticides, diversifies crop production and enhances the great deal of their agrarian population will receive most mindful consideration from Central Asia's federal governments, and farming and vegetable oil processing plants are not just much cheaper than pipelines, they can be constructed faster.


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

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