Central Asia's Vast Biofuel Opportunity

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The current revelations of a International Energy Administration whistleblower that the IEA may have distorted essential oil forecasts under extreme U.S.

The current revelations of a International Energy Administration whistleblower that the IEA may have misshaped crucial oil projections under extreme U.S. pressure is, if true (and whistleblowers hardly ever step forward to advance their professions), a slow-burning thermonuclear surge on future global oil production. The Bush administration's actions in pressuring the IEA to underplay the rate of decline from existing oil fields while overplaying the possibilities of finding new reserves have the possible to throw governments' long-term preparation into chaos.


Whatever the truth, increasing long term international demands appear specific to overtake production in the next decade, particularly offered the high and rising expenses of developing new super-fields such as Kazakhstan's overseas Kashagan and Brazil's southern Atlantic Jupiter and Carioca fields, which will need billions in investments before their first barrels of oil are produced.


In such a scenario, additives and alternatives such as biofuels will play an ever-increasing function by stretching beleaguered production quotas. As market forces and increasing rates drive this innovation to the forefront, one of the richest potential production areas has been absolutely neglected by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a major gamer in the production of biofuels if adequate foreign financial investment can be acquired. Unlike Brazil, where biofuel is manufactured 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 shores of the Caspian, Azerbaijan and Kazakhstan have actually seen their economies boom since of record-high energy prices, while Turkmenistan is waiting in the wings as an increasing manufacturer of natural gas.


Farther to the east, in Uzbekistan, Kyrgyzstan and Tajikistan, geographical seclusion and fairly scant hydrocarbon resources relative to their Western Caspian next-door neighbors have largely prevented their ability to capitalize increasing global energy needs up to now. Mountainous Kyrgyzstan and Tajikistan stay mostly reliant for their electrical needs on their Soviet-era hydroelectric facilities, but their increased requirement to produce winter electrical energy has actually resulted in autumnal and winter water discharges, in turn badly affecting the agriculture of their western downstream neighbors Uzbekistan, Kazakhstan and Turkmenistan.


What these 3 downstream countries do have however is a Soviet-era legacy of farming production, which in Uzbekistan's and Turkmenistan case was mainly directed towards cotton production, while Kazakhstan, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a significant manufacturer of wheat. Based upon my discussions with Central Asian federal government officials, given the thirsty demands of cotton monoculture, foreign propositions to diversify agrarian production towards biofuel would have great appeal in Astana, Ashgabat and Tashkent and to a lower degree Astana for those durable investors prepared to wager on the future, especially as a plant indigenous to the region has actually currently proven itself in trials.


Known in the West as false flax, wild flax, linseed dodder, German sesame and Siberian oilseed, camelina is bring in increased clinical interest for its oleaginous qualities, with numerous European and American companies currently investigating how to produce it in commercial amounts for biofuel. In January Japan Airlines carried out a historic test flight utilizing camelina-based bio-jet fuel, becoming the very first Asian carrier to explore flying on fuel stemmed 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 functional efficiency ability and potential industrial viability.


As an alternative energy source, camelina has much to suggest 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 immune 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 major wheat exporter. Another benefit of camelina is its tolerance of poorer, less fertile conditions. An acre sown 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 lot (1000 kg) of camelina will contain 350 kg of oil, of which pushing 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 an especially attractive concentration of omega-3 fats that make it an especially fine animals feed prospect that is recently gaining recognition in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and contends 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 ideal 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 evidence shows it has been cultivated in Europe for at least 3 millennia 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 wide variety of results of 330-1,700 pounds of seed per acre, with oil material differing in between 29 and 40%. Optimal seeding rates have been figured out to be in the 6-8 pound per acre variety, as the seeds' little size of 400,000 seeds per pound can produce problems in germination to achieve an optimum plant density of around 9 plants per sq. ft.


Camelina's capacity could enable Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has deformed the country's efforts at agrarian reform considering that 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 textile market. The procedure was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also ordered by Moscow to sow 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 actually ended up being a major 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 absence of alternatives Tashkent remains wedded to cotton, producing about 3.6 million lots every year, which generates more than $1 billion while making up around 60 percent of the nation's hard cash earnings.


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 planners to divert ever-increasing volumes of water from the area's two main rivers, the Amu Darya and Syr Darya, into inefficient watering canals, resulting in the dramatic shrinkage of the rivers' final location, the Aral Sea. The Aral, when 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 ecological catastrophes.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University 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 amass $230."


Central Asia has the land, the farms, the watering facilities and a modest wage scale in contrast to America or Europe - all that's missing out on is the foreign investment. U.S. investors have the money and access to the competence of America's land grant universities. What is certain is that biofuel's market share will grow over time; less particular is who will profit of developing it as a practical issue in Central Asia.


If the recent past is anything to pass it is not likely 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 financiers have the academic expertise, if they want to follow the Silk Road into establishing a new market. Certainly anything that lessens water usage and pesticides, diversifies crop production and enhances the lot of their agrarian population will receive most mindful factor to consider from Central Asia's federal governments, and farming and grease processing plants are not only more affordable than pipelines, they can be constructed faster.


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

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