Notes

Asia wood pellet market evaluation and also prediction<br>
In Asia, Japan and Korean are major wood pellet importers, while China, Thailand, Vietnam, Indonesia and also Malaysia are primarily 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 sector.



Japan

Promote policies

Japan has prepared a series of stimulate steps to advertise renewable resource manufacturing and also biomass power generation, such as the Basic Law of promoting biomass energy application in 2009 and state preparation to promote biomass power application.



The most influential plan is Fixed-price Assistance for Renewable Resource (FIT) carried out because July 2012. According to this policy, Electric power business are obliged to have particular section of biomass energy power generation, like solar photovoltaics and also biomass power at set price and duration. Since then, the wood pellets consumption grows up quickly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile become extra diversified. Japan ministry of economic situation, profession as well as industry (METI) re-exam the purchase price of FIT yearly, so the renewable resource cost is unstable for power generation business.




Production, intake as well as cost

According to the data of FAOSTAT in 2016, the domestic wood pellets production is 90,000 lots in the past 5 years. However Japan require to import more wood pellets as a result of the huge usage. In 2015, it import 230,000 loads from Canada, China and Vietnam. Offered the residential manufacturing and import volume, Japan's wood pellets usage is 320,000 tons in 2015.



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



The prepared biomass power plants

Since the apply of FIT in 2011, there have actually been more than 100 biomass power plant construction tasks, as well as 84 of them have actually been accepted.



The federal government intends to increase the proportion of renewable resource by 2030, with solar power taking up 15%, as well as biomass as well as hydropower 10%. Besides, the government strategy to build a biomass power zone to establish a comprehensive biomass energy usage system.



Oji Environment-friendly Resources as well as Mitsubishi Paper Mills also developed a joint venture business to construct a 75MW biomass power plant in Aomori. It is anticipated to begin production in 2019.



Future biomass pellets need

FIP policy will certainly continue to promote the biomass energy application in Japan. According to the prediction of Strauss, Japan will need 15 million lots of biomass pellets in the mid-2020s.



Korean

Renewable energy policy

Renewable Portfolio Standard (RPS) plays an essential duty is Korean's wood pellet market since 2012. It calls for the power generation firm to elevate the proportion of renewable resource from 2% to 10%.



Biomass power is expect to occupy 50% -60% of renewable power, among wind, solar, and also water powers. With the implement of RPS, the need and import of wood pellets in Oriental boost quickly.



RPS can decrease the power generation price by affordable technology seepage and elevate renewable energy supply. Yet the nuclear power plant proprietors have to raise their management price.



Manufacturing and demand

According to the information of FAOSTAT, The wood pellet manufacturing in Oriental is 15,000 t, which can not meet domestic 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 rise from 122,000 t in 2012 to 1850,000 t in 2014. 70% of them comes from Vietnam, as well as others from Malaysia, Canada, America, Russia, Indonesia, and also Australia.



Future demand.

As reported by Power Info Management (EIA), Korean's demand for wood pellets keep raising, driven by the RPS policy. Oriental federal government has set a goal to import 5 million lots of wood pellets by 2020 to satisfy 75% of domestic need. They will certainly be primarily imported from Canada, Southeast Asia as well as America.



China

Renewable resource plan

China's renewable resource industry grows up rapidly in the last few years. In 2013, China's National Energy administration published a guideline on building a renewable resource portfolio requirement. look these up calls for renewable energy should take up 15% of total power consumption by 2020, and 20% in 2030. According to this policy, the power generation firm need to use particular part of renewable energy. Yet https://www.click4r.com/posts/g/7909555/excellent-marketing-in-indonesia-entirely-wood-biomass-pellet-production-line-rate as well as charge system is not complete.



Production, export as well as consumption

China has plentiful source of biomass, including crop waste, branch, pet waste, organic waste water, city waste. According to the information of National Energy Administration, the forestry waste is 900 million lots annually, with 1/3 of them can be utilized as gas.



In the past few years, China's wood pellet production boost swiftly. It exported 287,000 lots of wood pellets to Korean in 2014. Yet in 2015, the export decreases swiftly when faced with Vietnam's low-price competitors, however the growing Japan market develops new opportunities.



Owing to the short of wood product supply and the increasing production cost, China's wood pellet cost enhances to 105 Euro/ton. So it is not as affordable as in the past.



China's wood pellet consumption is generally in the eastern and also Guangdong district, where coal central heating boilers are banned and also the wood pellet price is lower.



Vietnam

Vietnam has many large furniture suppliers. So there are plentiful wood wastes to make wood pellets, and also the cost is the most affordable in Asia. As well as the large wood pellet plant in Asia can promote the economic climate of scale.



Vietnam is a significant wood pellet exporter in Asia. It uses up 70% of Korean wood pellet market, as well as provides affordable price as reduced as 90 Euro/ton to Korean and Japan market. Besides, the transportation price from Vietnam to Korean is rather reduced.



Nonetheless, Korean is likely to elevate the wood pellet import standard, or reveal the bidders ahead of time. These plans will hinder Vietnam's trade with Korean. On the other hand, Japan will draw up similar plans to hinder Vietnam dealers from entering Japan market.



Malaysia, Indonesia and also Thailand

Compared to Vietnam, Malaysia, Indonesia and also Thailand are all small wood pellets manufacturers as well as merchants. In 2015, Indonesia and also Malaysia specifically exported 150,000 heaps as well as 60,000 lots of wood pellets to Korean. They additionally export small amount of Palm kernel shells (PKS) to Japan. Intoxicated of supplement, quality as well as amount, the buying price is high.

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