Notes

Asia wood pellet market evaluation and prediction<br>
In Asia, Japan and also Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia as well as Malaysia are mostly wood pellets merchants. As the wood pellet market in Europe is expected to level off, Asia will be one more drive engine in the biomass pellet industry.



Japan

Stimulate plans

Japan has actually drawn up a series of boost steps to advertise renewable energy manufacturing and biomass power generation, such as the Basic Law of advertising biomass energy application in 2009 and also state planning to advertise biomass energy application.



The most prominent policy is Fixed-price Assistance for Renewable Energy (FIT) performed given that July 2012. According to this plan, Electric power firms are required to have particular part of biomass energy power generation, like solar photovoltaics and biomass power at fixed price and also period. Ever since, the wood pellets intake grows up rapidly in Japan.



After the Fukushima nuclear crash in 2010, the power generation profile come to be more varied. Japan ministry of economic situation, trade and also sector (METI) re-exam the acquisition cost of FIT annually, so the renewable energy cost is unstable for power generation firms.



Manufacturing, consumption and cost

According to the data of FAOSTAT in 2016, the residential wood pellets manufacturing is 90,000 heaps in the past 5 years. But Japan require to import more wood pellets because of the large consumption. In 2015, it import 230,000 loads from Canada, China and also Vietnam. Offered the residential manufacturing and also import quantity, Japan's wood pellets usage is 320,000 bunches in 2015.




Japan usually import premium wood pellets and also export low-grade pellets. The import price is 178 Euro/ton, while the export rate is 129 Euro/ton.



The intended biomass nuclear power plant

Since the implement of suit 2011, there have actually been greater than 100 biomass power plant building and construction projects, and also 84 of them have actually been authorized.



The federal government intends to boost the percentage of renewable energy by 2030, with solar energy taking up 15%, as well as biomass as well as hydropower 10%. Besides, the federal government plan to build a biomass power area to establish a detailed biomass power use system.



Oji Environment-friendly Resources and Mitsubishi Paper Mills also constructed a joint venture business to build a 75MW biomass nuclear power plant in Aomori. It is expected to start manufacturing in 2019.



Future biomass pellets demand

FIP plan will certainly continue to promote the biomass power application in Japan. According to the prediction of Strauss, Japan will require 15 million tons of biomass pellets in the mid-2020s.



Oriental

Renewable energy policy

Renewable Profile Requirement (RPS) plays an essential function is Korean's wood pellet market since 2012. It needs the power generation firm to increase the percentage of renewable energy from 2% to 10%.



Biomass energy is anticipate to use up 50% -60% of sustainable power, among wind, solar, as well as water powers. With the apply of RPS, the need and also import of wood pellets in Korean rise rapidly.



RPS can lower the power generation expense by competitive technology infiltration as well as elevate renewable resource supply. However the power plant owners have to increase their management price.



Manufacturing and need

According to the data of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not fulfill residential need As reported by Bloomberg New Energy Finance, Korean's wood pellet demand is 2.2 million tons 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, and others from Malaysia, Canada, America, Russia, Indonesia, and also Australia.



Future need.

As reported by Power Details Administration (EIA), Korean's demand for wood pellets keep increasing, driven by the RPS plan. Korean federal government has actually established a goal to import 5 million tons of wood pellets by 2020 to meet 75% of residential need. They will certainly be primarily imported from Canada, Southeast Asia and also America.



China

Renewable energy policy

China's renewable energy market matures rapidly in recent years. In richi pellet machine , China's National Energy administration released a guideline on developing a renewable energy profile criterion. It calls for renewable energy should occupy 15% of complete energy consumption by 2020, and also 20% in 2030. According to special info , the power generation firm should use particular portion of renewable energy. However the guidance and fine system is not total.



Production, export and usage

China has abundant source of biomass, including crop waste, branch, pet waste, natural waste water, city garbage. According to the information of National Energy Administration, the forestry waste is 900 million heaps each year, with 1/3 of them can be used as gas.



In the past few years, China's wood pellet production increase quickly. It exported 287,000 lots of wood pellets to Korean in 2014. However in 2015, the export decreases swiftly in the face of Vietnam's low-price competition, however the growing Japan market creates brand-new chances.



Owing to the except wood material supply as well as the enhancing production expense, China's wood pellet cost increases to 105 Euro/ton. So it is not as competitive as in the past.




China's wood pellet consumption is generally in the eastern as well as Guangdong district, where coal central heating boilers are outlawed and the wood pellet cost is reduced.



Vietnam

Vietnam has many massive furnishings suppliers. So there are bountiful wood wastes to make wood pellets, and the expense is the most affordable in Asia. And the large wood pellet plant in Asia can promote the economy of range.



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



Nonetheless, Oriental is most likely to raise the wood pellet import criterion, or announce the bidders in advance. These policies will certainly prevent Vietnam's trade with Oriental. Meanwhile, Japan will prepare comparable plans to hinder Vietnam suppliers from entering Japan market.



Malaysia, Indonesia and also Thailand

Compared to Vietnam, Malaysia, Indonesia and also Thailand are all little wood pellets producers and exporters. In 2015, Indonesia as well as Malaysia respectively exported 150,000 heaps as well as 60,000 tons of wood pellets to Korean. They also export small amount of Palm bit shells (PKS) to Japan. Intoxicated of supplement, high quality and also amount, the purchasing price is high.


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