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Asia wood pellet market analysis as well as prediction<br>
In Asia, Japan and also Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia and also Malaysia are mainly 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

Boost plans

Japan has created a collection of stimulate actions to promote renewable energy production and also biomass power generation, such as the Basic Law of advertising biomass power application in 2009 and also state preparation to advertise biomass power application.



The most significant plan is Fixed-price Assistance for Renewable Resource (FIT) accomplished considering that July 2012. According to this policy, Electric power firms are required to have specific portion of biomass energy power generation, like solar photovoltaics and biomass power at fixed price as well as duration. Since then, the wood pellets consumption matures rapidly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation portfolio become extra varied. Japan ministry of economy, profession and market (METI) re-exam the acquisition cost of FIT annually, so the renewable energy price is unstable for power generation firms.



Production, usage and also rate

According to the information of FAOSTAT in 2016, the domestic wood pellets manufacturing is 90,000 lots in the past 5 years. But Japan need to import more wood pellets because of the big intake. In 2015, it import 230,000 lots from Canada, China and Vietnam. Offered the residential manufacturing and also import quantity, Japan's wood pellets usage is 320,000 lots in 2015.



Japan normally import high-grade wood pellets as well as export low-grade pellets. The import cost is 178 Euro/ton, while the export price is 129 Euro/ton.



The intended biomass nuclear power plant

Because the execute of suit 2011, there have been more than 100 biomass power plant construction projects, as well as 84 of them have been accepted.



The government intends to boost the proportion of renewable energy by 2030, with solar power taking up 15%, and also biomass and hydropower 10%. Besides, the government strategy to build a biomass power area to develop a detailed biomass power usage system.



Oji Green Resources and also Mitsubishi Paper Mills likewise developed a joint endeavor enterprise to develop a 75MW biomass power plant in Aomori. It is expected to begin manufacturing in 2019.



Future biomass pellets demand

FIP policy will remain to advertise the biomass energy application in Japan. According to click here to read of Strauss, Japan will need 15 million lots of biomass pellets in the mid-2020s.



Oriental

Renewable resource plan

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



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



RPS can reduce the power generation price by affordable technology seepage as well as elevate renewable resource supply. However the power plant owners need to raise their monitoring price.



Production and also demand

According to the information of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not satisfy residential need As reported by Bloomberg New Power Financing, Korean's wood pellet need is 2.2 million tons in 2014, around 40% of England's. The wood pellet import in Korean has boost from 122,000 t in 2012 to 1850,000 t in 2014. 70% of them originates from Vietnam, and others from Malaysia, Canada, America, Russia, Indonesia, and Australia.




Future demand.

As reported by Energy Info Administration (EIA), Korean's demand for wood pellets maintain increasing, driven by the RPS plan. Oriental government has established a goal to import 5 million lots of wood pellets by 2020 to meet 75% of domestic need. They will certainly be mostly imported from Canada, Southeast Asia as well as America.



China

Renewable energy plan

China's renewable resource industry matures rapidly in the last few years. In 2013, China's National Power management released an instruction on developing a renewable resource portfolio standard. It requires renewable resource must use up 15% of complete power intake by 2020, and 20% in 2030. According to this regulation, the power generation firm must use particular section of renewable resource. However the guidance as well as charge system is not full.



Production, export and also intake

China has bountiful resource of biomass, including plant waste, branch, animal waste, natural drainage, urban garbage. According to the information of National Energy Management, the forestry waste is 900 million loads yearly, with 1/3 of them can be used as fuel.



In the past couple of years, China's wood pellet manufacturing boost rapidly. It exported 287,000 tons of wood pellets to Korean in 2014. But in 2015, the export decreases quickly when faced with Vietnam's low-price competitors, yet the growing Japan market produces brand-new opportunities.



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




China's wood pellet intake is mainly in the east as well as Guangdong district, where coal boilers are banned and the wood pellet price is reduced.



Vietnam

Vietnam has many large-scale furnishings manufacturers. So there are plentiful wood wastes to make wood pellets, and also the price is the lowest in Asia. And also the big wood pellet plant in Asia can advertise the economic situation of range.



Vietnam is a significant wood pellet exporter in Asia. It occupies 70% of Oriental wood pellet market, and also provides affordable price as low as 90 Euro/ton to Korean and also Japan market. Besides, the transportation price from Vietnam to Korean is fairly low.



However, Korean is most likely to elevate the wood pellet import requirement, or introduce the bidders ahead of time. These plans will prevent Vietnam's trade with Oriental. Meanwhile, used wood pellet machine for sale will prepare comparable policies to impede Vietnam suppliers from getting into Japan market.



Malaysia, Indonesia as well as Thailand

Compared to Vietnam, Malaysia, Indonesia and Thailand are all small wood pellets producers and exporters. In 2015, Indonesia as well as Malaysia specifically exported 150,000 bunches and also 60,000 lots of wood pellets to Oriental. They also export percentage of Palm bit coverings (PKS) to Japan. Under the influence of supplement, top quality and amount, the investing in price is high.


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