Central Asia's Vast Biofuel Opportunity

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

The current revelations of a International Energy Administration whistleblower that the IEA may have misshaped key oil forecasts under extreme U.S. pressure is, if true (and whistleblowers rarely come forward to advance their professions), a slow-burning thermonuclear surge 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 new reserves have the possible to toss governments' long-term preparation into mayhem.


Whatever the truth, rising long term global demands seem particular to overtake production in the next years, especially 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 require billions in financial investments before their very first barrels of oil are produced.


In such a scenario, ingredients and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and rising prices drive this innovation to the forefront, one of the wealthiest prospective production areas has been totally ignored by investors already - 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 adequate foreign financial investment can be procured. Unlike Brazil, where biofuel is made largely 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 previous 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 costs, 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 next-door neighbors have actually mainly inhibited their ability to capitalize rising global energy demands already. Mountainous Kyrgyzstan and Tajikistan stay mostly reliant for their electrical needs on their Soviet-era hydroelectric infrastructure, however their increased requirement to create winter season electrical power has actually led to autumnal and winter water discharges, in turn badly affecting the farming of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these 3 downstream nations do have however is a Soviet-era tradition of farming production, which in Uzbekistan's and Turkmenistan case was mostly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually ended up being a major producer of wheat. Based on my discussions with Central Asian government officials, offered the thirsty needs of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have fantastic appeal in Astana, Ashgabat and Tashkent and to a lower level Astana for those hardy investors happy to wager on the future, especially as a plant native to the area has actually 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 scientific interest for its oleaginous qualities, with numerous European and American business already examining how to produce it in business 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 provider to experiment with flying on fuel stemmed from sustainable feedstocks throughout a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month assessment of camelina's functional efficiency ability and possible commercial viability.


As an alternative energy source, camelina has much to suggest 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, needs 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 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 load (1000 kg) of camelina will include 350 kg of oil, of which pushing 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 appealing concentration of omega-3 fats that make it an especially great livestock feed prospect that is recently acquiring acknowledgment 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 could be a perfect low-input crop suitable 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 barely a brand-new crop on the scene: archaeological evidence indicates it has actually been cultivated in Europe for a minimum of 3 millennia 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 pounds of seed per acre, with oil content varying in between 29 and 40%. Optimal seeding rates have actually been determined to be in the 6-8 pound per acre variety, as the seeds' small size of 400,000 seeds per lb can produce issues in germination to achieve an optimal plant density of around 9 plants per sq. ft.


Camelina's capacity might enable Uzbekistan to begin breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has deformed the nation's efforts at agrarian reform considering that achieving independence 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 process 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 ended up being self-dependent in cotton; 5 decades later on it had ended up being 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 may to diversify, in the lack of options Tashkent remains wedded to cotton, producing about 3.6 million lots each year, which brings in more than $1 billion while constituting roughly 60 percent of the country's hard currency income.


Beginning in the mid-1960s the Soviet government's directives 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 organizers to divert ever-increasing volumes of water from the area's two main rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, resulting in the significant shrinking of the rivers' last destination, 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 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 service 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 comparison to America or Europe - all that's missing out on is the foreign investment. U.S. financiers have the money and access to the knowledge of America's land grant universities. What is specific is that biofuel's market share will grow gradually; less certain is who will gain the benefits of developing it as a viable concern in Central Asia.


If the current past is anything to go by it is unlikely to be American and European investors, fixated as they are on Caspian oil and gas.


But while the Japanese flight experiments indicate Asian interest, American financiers have the academic expertise, if they are ready to follow the Silk Road into developing a new market. Certainly anything that reduces water use and pesticides, diversifies crop production and enhances the great deal of their agrarian population will get most mindful factor to consider from Central Asia's governments, and farming and grease processing plants are not just more affordable than pipelines, they can be developed more quickly.


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

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