Central Asia's Vast Biofuel Opportunity

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

The recent discoveries of a International Energy Administration whistleblower that the IEA may have distorted key oil projections under intense U.S. pressure is, if real (and whistleblowers hardly ever step forward to advance their professions), a slow-burning thermonuclear surge on future worldwide 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 brand-new reserves have the possible to throw federal governments' long-lasting preparation into mayhem.


Whatever the truth, increasing long term global needs appear specific to outstrip production in the next decade, specifically given the high and rising expenses 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 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 role by extending beleaguered production quotas. As market forces and rising costs drive this innovation to the leading edge, among the richest potential production areas has actually been completely ignored by financiers already - Central Asia. Formerly the USSR's cotton "plantation," the area is poised to end up being a significant player in the production of biofuels if enough foreign financial investment can be obtained. Unlike Brazil, where biofuel is manufactured largely from sugarcane, or the United States, where it is primarily 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 actually seen their economies boom because 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 isolation and reasonably scant hydrocarbon resources relative to their Western Caspian neighbors have actually largely prevented their capability to capitalize rising global energy demands already. Mountainous Kyrgyzstan and Tajikistan remain mostly reliant for their electrical requirements on their Soviet-era hydroelectric infrastructure, but their increased requirement to generate winter season electricity has resulted in autumnal and winter season water discharges, in turn seriously affecting the farming of their western downstream next-door 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 mainly 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 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 lower degree Astana for those durable financiers going to bet on the future, especially as a plant native to the area has already 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 scientific interest for its oleaginous qualities, with several European and American business already investigating how to produce it in industrial amounts for biofuel. In January Japan Airlines carried out a historical test flight utilizing camelina-based bio-jet fuel, ending up being the first Asian provider to experiment with flying on fuel stemmed from sustainable feedstocks throughout a one-hour presentation flight from Tokyo's Haneda Airport. The test was the conclusion of a 12-month evaluation of camelina's functional efficiency ability and possible commercial practicality.


As an alternative energy source, camelina has much to advise 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 utilized as a rotation crop with wheat, which would make it of particular interest in Kazakhstan, now Central Asia's significant wheat exporter. Another perk of camelina is its tolerance of poorer, less fertile conditions. An acre planted with camelina can produce as much as 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 pushing can extract 250 kg. Nothing in camelina production is squandered as after processing, the plant's particles can be utilized for livestock silage. Camelina silage has a particularly appealing concentration of omega-3 fatty acids that make it an especially fine livestock feed prospect that is recently gaining acknowledgment in the U.S. and Canada. Camelina is quick 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 might be an ideal 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 new crop on the scene: historical evidence suggests it has been cultivated in Europe for a minimum of 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 wide variety of outcomes of 330-1,700 pounds of seed per acre, with oil content differing in between 29 and 40%. Optimal seeding rates have been determined to be in the 6-8 lb per acre range, as the seeds' little size of 400,000 seeds per lb can develop problems in germination to achieve an ideal 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 distorted the country's attempts at agrarian reform given that attaining independence in 1991. Beginning in the late 19th century, the Russian federal government figured out that Central Asia would become its cotton plantation to feed Moscow's growing textile market. The process was sped up under the Soviets. While Azerbaijan, Kazakhstan, Tajikistan and Turkmenistan were also ordered 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; 5 years later on it had 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 options Tashkent stays wedded to cotton, producing about 3.6 million tons each year, which generates more than $1 billion while constituting around 60 percent of the country's hard cash income.


Beginning in the mid-1960s the Soviet federal government's directives for Central Asian cotton production largely 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 region's two primary rivers, the Amu Darya and Syr Darya, into inefficient irrigation canals, leading to the remarkable 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 diminished to one-quarter its original size in among the 20th century's worst environmental 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 bring in $224 per acre; 28-bushel white wheat at $8.23 per bushel would amass $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 out on is the foreign financial investment. U.S. investors 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 with time; less certain is who will profit of developing it as a practical concern in Central Asia.


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


But while the Japanese flight experiments indicate Asian interest, American investors have the academic know-how, if they are willing to follow the Silk Road into establishing a new market. Certainly anything that minimizes water usage and pesticides, diversifies crop production and improves the great deal of their agrarian population will get most careful factor to consider from Central Asia's governments, and farming and veggie oil processing plants are not only much cheaper than pipelines, they can be developed quicker.


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

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