Notes

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



Japan

Boost policies

Japan has formulated a collection of promote procedures to advertise renewable energy production and also biomass power generation, such as the Basic Legislation of promoting biomass energy application in 2009 and also state preparation to promote biomass energy application.



One of the most significant policy is Fixed-price Assistance for Renewable Energy (FIT) executed because July 2012. According to this plan, Electric power firms are obliged to have specific part of biomass energy power generation, like solar photovoltaics as well as biomass power at set price and duration. Since then, richi pellet mill grows up swiftly in Japan.



After the Fukushima nuclear crash in 2010, the power generation portfolio become a lot more diversified. Japan ministry of economy, trade as well as industry (METI) re-exam the purchase price of FIT each year, so the renewable resource expense is unpredictable for power generation companies.



Production, intake as well as rate

According to the information of FAOSTAT in 2016, the domestic wood pellets production is 90,000 tons in the past 5 years. But Japan need to import even more wood pellets as a result of the big intake. In 2015, it import 230,000 heaps from Canada, China and Vietnam. Offered the domestic production as well as import volume, Japan's wood pellets consumption is 320,000 heaps in 2015.




Japan typically import top notch wood pellets and export low-grade pellets. The import cost is 178 Euro/ton, while the export price is 129 Euro/ton.



The planned biomass power plants

Given that the implement of suit 2011, there have actually been greater than 100 biomass nuclear power plant building and construction tasks, and 84 of them have actually been accepted.



The government intends to boost the proportion of renewable energy by 2030, with solar energy using up 15%, and biomass and also hydropower 10%. Besides, the government plan to develop a biomass energy zone to establish a comprehensive biomass energy use system.



Oji Green Resources and Mitsubishi Paper Mills additionally built a joint endeavor business to develop a 75MW biomass nuclear power plant in Aomori. It is anticipated to begin manufacturing in 2019.



Future biomass pellets demand

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



Korean

Renewable resource policy

Renewable Portfolio Requirement (RPS) plays an important role is Korean's wood pellet market considering 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 sustainable power, among wind, solar, and also water powers. With the implement of RPS, the need as well as import of wood pellets in Korean increase quickly.



RPS can decrease the power generation price by affordable technology infiltration and also elevate renewable energy supply. But the power plant proprietors need to increase their monitoring expense.



Production and also demand

According to the information of FAOSTAT, The wood pellet manufacturing in Oriental is 15,000 t, which can not satisfy residential need As reported by Bloomberg New Power 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 increase from 122,000 t in 2012 to 1850,000 t in 2014. 70% of them originates from Vietnam, as well as others from Malaysia, Canada, America, Russia, Indonesia, and Australia.



Future need.

As reported by Energy Information Management (EIA), Korean's need for wood pellets maintain raising, driven by the RPS policy. Oriental government has set an objective to import 5 million tons of wood pellets by 2020 to satisfy 75% of residential demand. They will certainly be mostly imported from Canada, Southeast Asia and America.



China

Renewable resource policy

China's renewable resource industry grows up swiftly recently. In read , China's National Energy management published an instruction on developing a renewable energy profile criterion. visit the site needs renewable resource should use up 15% of overall power intake by 2020, and 20% in 2030. According to this guideline, the power generation firm need to utilize specific portion of renewable energy. Yet the supervision as well as charge system is not complete.



Production, export and consumption

China has plentiful resource of biomass, consisting of crop waste, branch, pet waste, natural waste water, city rubbish. According to the information of National Power Administration, the forestry waste is 900 million tons annually, with 1/3 of them can be made use of as gas.



In the past few years, China's wood pellet manufacturing increase swiftly. It exported 287,000 lots of wood pellets to Oriental in 2014. However in 2015, the export decreases rapidly despite Vietnam's low-price competition, yet the growing Japan market produces new possibilities.



Owing to the except wood product supply and also the raising manufacturing cost, China's wood pellet cost increases to 105 Euro/ton. So it is not as affordable as in the past.



China's wood pellet usage is generally in the east and also Guangdong province, where coal boilers are prohibited and the wood pellet price is reduced.



Vietnam

Vietnam has many massive furnishings manufacturers. So there are plentiful wood wastes to make wood pellets, as well as the cost is the most affordable in Asia. And also the large wood pellet plant in Asia can advertise the economic climate of range.



Vietnam is a major wood pellet exporter in Asia. It takes up 70% of Korean wood pellet market, and also uses competitive price as low as 90 Euro/ton to Korean and also Japan market. Besides, the transport cost from Vietnam to Korean is fairly low.



Nevertheless, Korean is most likely to increase the wood pellet import criterion, or reveal the bidders in advance. These plans will certainly hinder Vietnam's trade with Oriental. At the same time, Japan will create similar policies to impede Vietnam dealers from getting involved in Japan market.



Malaysia, Indonesia and also Thailand

Compared to Vietnam, Malaysia, Indonesia and also Thailand are all little wood pellets manufacturers as well as exporters. In 2015, Indonesia and Malaysia specifically exported 150,000 heaps as well as 60,000 lots of wood pellets to Oriental. They additionally export small amount of Hand bit coverings (PKS) to Japan. Intoxicated of supplement, high quality and also quantity, the getting price is high.

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