Notes

Asia wood pellet market analysis and also prediction<br>
In Asia, Japan and also Korean are major wood pellet importers, while China, Thailand, Vietnam, Indonesia and also Malaysia are mainly wood pellets merchants. As the wood pellet market in Europe is anticipated to level off, Asia will certainly be one more drive engine in the biomass pellet sector.



Japan

Promote plans

Japan has actually formulated a collection of boost measures to advertise renewable energy production as well as biomass power generation, such as the Basic Legislation of advertising biomass power application in 2009 and also state preparation to advertise biomass energy application.



The most prominent policy is Fixed-price Assistance for Renewable Energy (FIT) executed because July 2012. According to this plan, Electric power business are required to have particular portion of biomass energy power generation, like solar photovoltaics and also biomass power at set price as well as period. Ever since, the wood pellets usage matures quickly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile become much more diversified. Japan ministry of economic climate, trade and sector (METI) re-exam the purchase cost of FIT annually, so the renewable energy price is unsteady for power generation business.



Production, usage and rate

According to the data of FAOSTAT in 2016, the residential wood pellets manufacturing is 90,000 heaps in the past 5 years. However Japan require to import more wood pellets because of the huge intake. In 2015, it import 230,000 lots from Canada, China as well as Vietnam. Provided the domestic manufacturing and import volume, Japan's wood pellets intake is 320,000 heaps in 2015.



Japan generally import premium wood pellets and export low-quality pellets. The import rate is 178 Euro/ton, while the export rate is 129 Euro/ton.



The prepared biomass nuclear power plant

Considering that the carry out of FIT in 2011, there have actually been more than 100 biomass power plant building projects, and 84 of them have been authorized.




The federal government intends to raise the proportion of renewable energy by 2030, with solar power taking up 15%, as well as biomass as well as hydropower 10%. Besides, the government strategy to build a biomass energy area to develop a comprehensive biomass power use system.



Oji Environment-friendly Resources and also Mitsubishi Paper Mills additionally constructed a joint venture enterprise to develop a 75MW biomass power plant in Aomori. It is anticipated to start manufacturing in 2019.



Future biomass pellets need


FIP policy will certainly remain to promote the biomass energy application in Japan. According to the prediction of Strauss, Japan will certainly need 15 million tons of biomass pellets in the mid-2020s.



Oriental

Renewable energy plan

Renewable Profile Standard (RPS) plays an essential duty is Korean's wood pellet market given that 2012. It requires the power generation business to increase the percentage of renewable energy from 2% to 10%.



Biomass energy is expect to use up 50% -60% of eco-friendly power, amongst wind, solar, as well as water powers. With the execute of RPS, the demand as well as import of wood pellets in Korean increase rapidly.



RPS can minimize the power generation price by affordable technology infiltration and also increase renewable resource supply. But the power plant owners need to raise their management price.



Production and need

According to the data of FAOSTAT, The wood pellet manufacturing in Oriental is 15,000 t, which can not fulfill domestic demand As reported by Bloomberg New Energy Finance, Korean's wood pellet demand is 2.2 million bunches in 2014, around 40% of England's. The wood pellet import in Korean has increase from 122,000 t in 2012 to 1850,000 t in 2014. 70% of them comes from Vietnam, as well as others from Malaysia, Canada, America, Russia, Indonesia, and Australia.



Future demand.

As reported by Power Details Management (EIA), Korean's need for wood pellets keep boosting, driven by the RPS policy. pellet press has actually established a goal to import 5 million tons of wood pellets by 2020 to satisfy 75% of domestic demand. They will be mostly imported from Canada, Southeast Asia and also America.



China

Renewable energy plan

China's renewable resource market matures swiftly recently. In 2013, China's National Power management released a guideline on constructing a renewable energy profile criterion. It needs renewable energy ought to take up 15% of overall energy consumption by 2020, and also 20% in 2030. According to this policy, the power generation firm should make use of particular section of renewable energy. However the guidance and also penalty system is not complete.



Manufacturing, export and consumption

China has abundant source of biomass, consisting of crop waste, branch, pet waste, natural waste water, metropolitan waste. According to the data of National Power Administration, the forestry waste is 900 million heaps annually, with 1/3 of them can be used as fuel.



In the past couple of years, China's wood pellet production increase quickly. Website exported 287,000 tons of wood pellets to Korean in 2014. But in 2015, the export decreases swiftly despite Vietnam's low-price competitors, but the growing Japan market produces new possibilities.



Owing to the except wood material supply as well as the raising manufacturing expense, China's wood pellet rate increases to 105 Euro/ton. So yulong pellet mill is not as competitive as before.



China's wood pellet consumption is mostly in the eastern as well as Guangdong province, where coal boilers are outlawed as well as the wood pellet cost is reduced.



Vietnam

Vietnam has several large-scale furnishings suppliers. So there are plentiful wood wastes to make wood pellets, and the expense is the lowest in Asia. And the large wood pellet plant in Asia can advertise the economic climate of range.



Vietnam is a significant wood pellet exporter in Asia. It uses up 70% of Korean wood pellet market, and offers affordable price as low as 90 Euro/ton to Korean as well as Japan market. Besides, the transport expense from Vietnam to Korean is rather reduced.



Nonetheless, Oriental is likely to raise the wood pellet import standard, or reveal the bidders ahead of time. These policies will certainly prevent Vietnam's trade with Korean. At the same time, Japan will draw up comparable policies to prevent Vietnam dealers from getting involved in Japan market.



Malaysia, Indonesia and Thailand

Compared to Vietnam, Malaysia, Indonesia and Thailand are all little wood pellets producers as well as exporters. In 2015, Indonesia and also Malaysia respectively exported 150,000 bunches and 60,000 lots of wood pellets to Oriental. They likewise export small amount of Palm kernel coverings (PKS) to Japan. Drunk of supplement, top quality and also amount, the acquiring rate is high.


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