Notes

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



Japan

Stimulate plans

Japan has actually drawn up a collection of stimulate actions to advertise renewable energy manufacturing and also biomass power generation, such as the Basic Legislation of advertising biomass energy application in 2009 and state planning to advertise biomass energy application.



One of the most significant plan is Fixed-price Assistance for Renewable Resource (FIT) accomplished since July 2012. According to this plan, Electric power firms are obliged to have specific portion of biomass energy power generation, like solar photovoltaics and also biomass energy at set price as well as duration. Ever since, my blog grows up quickly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile end up being a lot more diversified. Japan ministry of economy, profession and also market (METI) re-exam the acquisition cost of FIT each year, so the renewable resource expense is unpredictable for power generation firms.



Production, consumption and also price

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



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



The prepared biomass nuclear power plant

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



The federal government aims to raise the percentage of renewable energy by 2030, with solar power taking up 15%, and biomass and also hydropower 10%. Besides, the government plan to develop a biomass power area to establish a comprehensive biomass energy use system.



Oji Eco-friendly Resources and Mitsubishi Paper Mills also developed a joint venture business to construct a 75MW biomass nuclear power plant in Aomori. It is anticipated to start production in 2019.



Future biomass pellets need

FIP policy will certainly continue to advertise 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 Portfolio Requirement (RPS) plays a vital duty is Korean's wood pellet market given that 2012. It calls for the power generation business to increase the proportion of renewable energy from 2% to 10%.



Biomass power is expect to use up 50% -60% of renewable power, among wind, solar, and water powers. With the implement of RPS, the demand and also import of wood pellets in Korean increase quickly.



RPS can reduce the power generation expense by competitive technology seepage as well as increase renewable resource supply. But the nuclear power plant owners have to increase their monitoring price.



Production as well as need

According to the data of FAOSTAT, The wood pellet manufacturing in Korean is 15,000 t, which can not fulfill residential demand As reported by Bloomberg New Power Money, Korean's wood pellet demand is 2.2 million loads 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 comes from Vietnam, and others from Malaysia, Canada, America, Russia, Indonesia, as well as Australia.



Future need.

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



China

Renewable resource plan

China's renewable resource sector grows up swiftly in recent years. In 2013, China's National Power management released a direction on developing a renewable resource profile standard. It requires renewable energy should take up 15% of complete power intake by 2020, and 20% in 2030. According to this law, the power generation company should use particular section of renewable energy. But the guidance and charge system is not total.



Manufacturing, export and usage

China has abundant source of biomass, consisting of crop waste, branch, pet waste, natural drainage, urban trash. According to the data of National Power Management, the forestry waste is 900 million lots every year, with 1/3 of them can be utilized as fuel.



In the past few years, China's wood pellet production increase rapidly. It exported 287,000 lots of wood pellets to Korean in 2014. Yet in 2015, the export declines quickly despite Vietnam's low-price competition, but the expanding Japan market produces brand-new possibilities.



Owing to the short of wood product supply and the raising manufacturing expense, China's wood pellet cost raises to 105 Euro/ton. So it is not as affordable as before.



China's wood pellet consumption is primarily in the east as well as Guangdong district, where coal boilers are banned and also the wood pellet expense is reduced.



Vietnam

Vietnam has several large-scale furniture manufacturers. So there are abundant 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 economic situation of scale.




Vietnam is a significant wood pellet merchant in Asia. It uses up 70% of Oriental wood pellet market, and provides competitive cost as reduced as 90 Euro/ton to Korean and also Japan market. Besides, the transportation cost from Vietnam to Korean is quite low.



Nevertheless, Korean is most likely to increase the wood pellet import standard, or reveal the prospective buyers beforehand. These plans will certainly prevent Vietnam's trade with Korean. On the other hand, Japan will certainly create similar plans to prevent Vietnam dealerships from entering Japan market.



Malaysia, Indonesia and Thailand

Compared to Vietnam, Malaysia, Indonesia and also Thailand are all little wood pellets producers and also exporters. In https://richimachineryblog.wordpress.com/2023/02/06/high-yield-operation-of-the-pet-feed-pellet-making-machine/ , Indonesia and Malaysia respectively exported 150,000 tons and also 60,000 lots of wood pellets to Oriental. They also export small amount of Palm kernel shells (PKS) to Japan. Under the influence of supplement, quality and also quantity, the investing in price is high.

Read More: https://richimachineryblog.wordpress.com/2023/02/06/high-yield-operation-of-the-pet-feed-pellet-making-machine/