Notes

Asia wood pellet market analysis and prediction<br>
In Asia, Japan and Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia as well as Malaysia are mainly wood pellets exporters. As the wood pellet market in Europe is expected to level off, Asia will certainly be an additional drive engine in the biomass pellet industry.



Japan

Stimulate plans

Japan has prepared a series of boost actions to advertise renewable resource production as well as biomass power generation, such as the Basic Regulation of promoting biomass power application in 2009 and state preparation to advertise biomass power application.



The most prominent policy is Fixed-price Assistance for Renewable Energy (FIT) carried out because July 2012. According to this plan, Electric power companies are required to have specific portion of biomass energy power generation, like solar photovoltaics as well as biomass energy at fixed price as well as period. Since then, the wood pellets usage grows up rapidly in Japan.



After the Fukushima nuclear accident in 2010, the power generation profile end up being much more diversified. Japan ministry of economic climate, profession and also market (METI) re-exam the purchase price of FIT every year, so the renewable energy price is unpredictable for power generation companies.



Manufacturing, consumption and price

According to the information of FAOSTAT in 2016, the residential wood pellets production is 90,000 bunches in the past 5 years. However Japan need to import more wood pellets due to the huge consumption. In 2015, it import 230,000 loads from Canada, China as well as Vietnam. Given the domestic manufacturing and import volume, Japan's wood pellets intake is 320,000 loads in 2015.



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



The planned biomass power plants

Given that the execute of suit 2011, there have actually been more than 100 biomass power plant building projects, and also 84 of them have actually been approved.



The government intends to enhance the percentage of renewable resource by 2030, with solar power taking up 15%, and also biomass and also hydropower 10%. Besides, the federal government strategy to develop a biomass power area to establish a detailed biomass power usage system.



Oji Green Resources and Mitsubishi Paper Mills additionally constructed a joint venture business to develop a 75MW biomass nuclear power plant in Aomori. It is expected to start manufacturing in 2019.



Future biomass pellets need

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




Oriental

Renewable resource policy

Renewable Profile Standard (RPS) plays an essential role is Korean's wood pellet market because 2012. It needs the power generation business to raise the percentage of renewable resource from 2% to 10%.



Biomass power is anticipate to occupy 50% -60% of sustainable power, amongst wind, solar, and also water powers. With the implement of RPS, the need and also import of wood pellets in Korean boost swiftly.



RPS can decrease the power generation cost by affordable innovation seepage and also elevate renewable energy supply. However the nuclear power plant owners have to increase their management expense.



Manufacturing and demand

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



Future need.

As reported by Energy Info Administration (EIA), Korean's demand for wood pellets maintain boosting, driven by the RPS policy. Korean government has actually set a goal to import 5 million lots of wood pellets by 2020 to meet 75% of residential need. They will be generally imported from Canada, Southeast Asia and America.



China

Renewable energy policy

China's renewable energy industry matures swiftly in recent years. In 2013, China's National Energy management published a direction on developing a renewable energy portfolio criterion. It needs renewable resource must occupy 15% of overall power consumption by 2020, and also 20% in 2030. According to this law, the power generation business need to utilize certain part of renewable energy. But the supervision and fine system is not total.



Production, export and also intake

China has abundant resource of biomass, including crop waste, branch, animal waste, natural drainage, metropolitan rubbish. 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 gas.



In the past few years, China's wood pellet manufacturing increase rapidly. It exported 287,000 lots of wood pellets to Korean in 2014. Yet in diy feed pellet machine , the export declines rapidly despite Vietnam's low-price competitors, however the expanding Japan market develops new possibilities.



Owing to the except wood product supply as well as the boosting production expense, China's wood pellet cost enhances to 105 Euro/ton. So it is not as affordable as in the past.



China's wood pellet usage is mainly in the east and Guangdong province, where coal central heating boilers are prohibited and also the wood pellet expense is lower.



Vietnam

Vietnam has many large furnishings makers. So there are plentiful wood wastes to make wood pellets, and also the price is the most affordable in Asia. And also the huge wood pellet plant in Asia can promote the economy of range.



Vietnam is a major wood pellet merchant in Asia. It occupies 70% of Oriental wood pellet market, and also offers competitive rate as low as 90 Euro/ton to Korean as well as Japan market. Besides, the transportation expense from Vietnam to Korean is quite low.



Nonetheless, Oriental is likely to elevate the wood pellet import requirement, or reveal the bidders ahead of time. These plans will impede Vietnam's trade with Korean. On the other hand, Japan will prepare similar policies to prevent Vietnam dealers from getting into Japan market.




Malaysia, Indonesia and Thailand

Compared to Vietnam, Malaysia, Indonesia as well as Thailand are all small wood pellets manufacturers and also merchants. In 2015, Indonesia as well as Malaysia respectively exported 150,000 heaps and also 60,000 tons of wood pellets to Korean. hay pellet machine export percentage of Palm bit shells (PKS) to Japan. Intoxicated of supplement, top quality and also amount, the buying cost is high.


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