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 key oil projections under intense U.S.

The recent revelations of a International Energy Administration whistleblower that the IEA might have distorted crucial oil forecasts under extreme U.S. pressure is, if true (and whistleblowers rarely step forward to advance their professions), a slow-burning atomic surge on future worldwide oil production. The Bush administration's actions in pushing the IEA to underplay the rate of decrease from existing oil fields while overplaying the possibilities of discovering brand-new reserves have the possible to throw federal governments' long-lasting preparation into turmoil.


Whatever the reality, rising long term worldwide demands seem particular to outstrip production in the next years, specifically 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 need billions in financial investments before their very first barrels of oil are produced.


In such a circumstance, ingredients and substitutes such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing rates drive this technology to the forefront, one of the wealthiest possible 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 investment can be acquired. Unlike Brazil, where biofuel is made mainly from sugarcane, or the United States, where it is mostly distilled from corn, Central Asia's ace resource is a native plant, Camelina sativa.


Of the previous Soviet Caucasian and Central Asian republics, those clustered around the shores of the Caspian, Azerbaijan and Kazakhstan have 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 natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical isolation and fairly scant hydrocarbon resources relative to their Western Caspian next-door neighbors have actually mainly hindered their ability to cash in on rising global energy demands up to now. Mountainous Kyrgyzstan and Tajikistan remain largely reliant for their electrical needs on their Soviet-era hydroelectric facilities, however their increased need to produce winter electricity has actually led to autumnal and winter water discharges, in turn significantly impacting the agriculture of their western downstream next-door neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these three downstream nations do have however is a Soviet-era tradition of farming 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 on my conversations with Central Asian federal government authorities, offered the thirsty demands of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser level Astana for those sturdy investors ready to bank on the future, especially as a plant native to the region has currently proven 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 companies already examining how to produce it in industrial amounts for biofuel. In January Japan Airlines undertook a historic test flight using camelina-based bio-jet fuel, becoming the very first Asian provider to explore flying on fuel stemmed from sustainable feedstocks throughout a one-hour demonstration flight from Tokyo's Haneda Airport. The test was the culmination of a 12-month examination of camelina's operational performance capability and potential commercial practicality.


As an alternative energy source, camelina has much to recommend it. It has a high oil material low in saturated 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 used as a rotation crop with wheat, which would make it of specific interest in Kazakhstan, now Central Asia's significant wheat exporter. Another bonus offer 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 heap (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 debris can be used for animals silage. Camelina silage has a particularly appealing concentration of omega-3 fats that make it a particularly great animals feed candidate that is recently getting acknowledgment 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 established. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina might be an ideal 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 been cultivated in Europe for at least 3 centuries to produce both veggie oil and animal fodder.


Field trials of production in Montana, currently the center of U.S. camelina research study, showed a vast array of results of 330-1,700 lbs of seed per acre, with oil content differing between 29 and 40%. Optimal seeding rates have actually been identified to be in the 6-8 lb per acre variety, as the seeds' small size of 400,000 seeds per pound can develop issues in germination to attain an optimal plant density of around 9 plants per sq. ft.


Camelina's capacity could allow Uzbekistan to begin breaking out of its most dolorous tradition, the imposition of a cotton monoculture that has warped the country's efforts at agrarian reform since attaining independence in 1991. Beginning in the late 19th century, the Russian government determined that Central Asia would become its cotton plantation to feed Moscow's growing textile industry. The procedure was accelerated under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were likewise 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 become self-dependent in cotton; five years 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 absence of options Tashkent stays wedded to cotton, producing about 3.6 million lots annually, which generates more than $1 billion while constituting 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 mostly bankrupted the area'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 watering canals, leading to the dramatic shrinkage 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 shrunk to one-quarter its initial size in one of the 20th century's worst environmental catastrophes.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University just recently described camelina's company 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 gather $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 financial investment. U.S. financiers have the money and access to the competence of America's land grant universities. What is specific is that biofuel's market share will grow in time; less certain is who will gain the advantages of developing it as a viable issue in Central Asia.


If the current past is anything to pass it is unlikely to be American and European financiers, focused as they are on Caspian oil and gas.


But while the Japanese flight experiments show Asian interest, American investors have the academic expertise, if they want to follow the Silk Road into developing a new market. Certainly anything that reduces water usage and pesticides, diversifies crop production and improves the lot of their agrarian population will get most careful consideration 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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