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Central Asia's Vast Biofuel Opportunity

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The current revelations of a International Energy Administration whistleblower that the IEA may have misshaped key oil projections under intense U.S.

The current discoveries of a International Energy Administration whistleblower that the IEA might have misshaped essential oil forecasts under extreme U.S. pressure is, if true (and whistleblowers rarely step forward to advance their professions), a slow-burning atomic explosion 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 brand-new reserves have the possible to toss federal governments' long-lasting preparation into turmoil.


Whatever the truth, rising long term global demands appear certain to overtake production in the next years, especially provided the high and increasing costs of establishing new super-fields such as Kazakhstan's overseas 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 situation, ingredients and alternatives such as biofuels will play an ever-increasing function by extending beleaguered production quotas. As market forces and increasing costs drive this technology to the forefront, one of the wealthiest possible production locations has actually been completely overlooked by investors up to now - Central Asia. Formerly the USSR's cotton "plantation," the region is poised to become a significant player in the production of biofuels if sufficient foreign financial investment can be procured. Unlike Brazil, where biofuel is made mainly from sugarcane, or the United States, where it is primarily distilled from corn, Central Asia's ace resource is a native plant, Camelina sativa.


Of the former 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 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 inhibited their ability to cash in on rising international energy needs up to now. Mountainous Kyrgyzstan and Tajikistan remain mainly reliant for their electrical needs on their Soviet-era hydroelectric facilities, but their heightened need to generate winter electrical energy has led to autumnal and winter water discharges, in turn significantly affecting the farming 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, starting in the 1950s with Khrushchev's "Virgin Lands" programs, has actually become a major producer of wheat. Based on my conversations with Central Asian government authorities, given the thirsty demands of cotton monoculture, foreign proposals to diversify agrarian production towards biofuel would have terrific appeal in Astana, Ashgabat and Tashkent and to a lesser degree Astana for those durable financiers ready to bank on the future, specifically as a plant native to the area has 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 scientific interest for its oleaginous qualities, with a number of European and American business currently examining how to produce it in industrial amounts for biofuel. In January Japan Airlines undertook a historic test flight utilizing camelina-based bio-jet fuel, becoming the first Asian provider 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 capability and potential business viability.


As an alternative energy source, camelina has much to recommend 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 immune to spring freezing, requires less fertilizer and herbicides, and can be used as a rotation crop with wheat, which would make it of particular 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 lot (1000 kg) of camelina will consist of 350 kg of oil, of which pressing can extract 250 kg. Nothing in camelina production is wasted as after processing, the plant's debris can be used for livestock silage. Camelina silage has a particularly appealing concentration of omega-3 fats that make it a particularly great animals feed prospect that is recently getting acknowledgment in the U.S. and Canada. Camelina is fast growing, produces its own natural herbicide (allelopathy) and competes well versus weeds when an even crop is established. According to Britain's Bangor University's Centre for Alternative Land Use, "Camelina could 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 household, is native to both Europe and Central Asia and barely a new crop on the scene: archaeological proof shows it has been cultivated in Europe for at least 3 centuries to produce both grease and animal fodder.


Field trials of production in Montana, presently the center of U.S. camelina research, revealed a wide variety of results of 330-1,700 pounds of seed per acre, with oil content varying between 29 and 40%. Optimal seeding rates have been determined to be in the 6-8 lb per acre variety, as the seeds' small size of 400,000 seeds per pound can create problems in germination to accomplish an optimal plant density of around 9 plants per sq. ft.


Camelina's capacity could allow Uzbekistan to start breaking out of its most dolorous legacy, the imposition of a cotton monoculture that has deformed the country's attempts at agrarian reform considering that accomplishing independence in 1991. Beginning in the late 19th century, the Russian federal government determined 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 likewise ordered 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 actually become self-sufficient in cotton; 5 decades later on it had actually 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 alternatives Tashkent stays wedded to cotton, producing about 3.6 million loads annually, which generates more than $1 billion while constituting roughly 60 percent of the nation's hard cash earnings.


Beginning in the mid-1960s the Soviet federal government's instructions for Central Asian cotton production mainly bankrupted the area's scarcest resource, water. Cotton utilizes about 3.5 acre feet of water per acre of plants, leading Soviet coordinators to divert ever-increasing volumes of water from the region's two primary rivers, the Amu Darya and Syr Darya, into ineffective watering canals, leading to the dramatic shrinking of the rivers' last location, 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 ecological disasters.


And now, the dollars and cents. Dr. Bill Schillinger at Washington State University recently explained camelina's organization model 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 gather $230."


Central Asia has the land, the farms, the watering facilities and a modest wage scale in comparison to America or Europe - all that's missing is the foreign investment. U.S. investors have the money and access to the proficiency of America's land grant universities. What is specific is that biofuel's market share will grow over time; less particular is who will gain the benefits of establishing it as a viable issue in Central Asia.


If the current past is anything to go by it is not likely 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 scholastic know-how, if they want to follow the Silk Road into establishing a brand-new market. Certainly anything that decreases water use and pesticides, diversifies crop production and improves the great deal of their agrarian population will get most mindful consideration from Central Asia's federal governments, and farming and grease processing plants are not just more affordable than pipelines, they can be developed quicker.


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

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