Notes

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



Japan

Stimulate plans

Japan has actually prepared a collection of boost steps to advertise renewable energy manufacturing and biomass power generation, such as the Basic Regulation of promoting biomass energy application in 2009 and also state planning to advertise biomass energy application.



The most prominent plan is Fixed-price Support for Renewable Resource (FIT) performed because July 2012. According to this plan, Electric power business are obliged to have specific section of biomass energy power generation, like solar photovoltaics and also biomass energy at fixed price and duration. Since then, the wood pellets usage matures rapidly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation portfolio become more varied. Japan ministry of economic climate, trade and market (METI) re-exam the purchase price of FIT every year, so the renewable energy price is unpredictable for power generation business.



Manufacturing, consumption and also rate

According to the data of FAOSTAT in 2016, the residential wood pellets production is 90,000 lots in the past 5 years. Yet Japan require to import even more wood pellets because of the large intake. In 2015, it import 230,000 tons from Canada, China and also Vietnam. Offered the residential production and import quantity, Japan's wood pellets usage is 320,000 tons in 2015.



Japan usually import premium wood pellets and export low-grade pellets. The import rate is 178 Euro/ton, while the export price is 129 Euro/ton.



The prepared biomass nuclear power plant

Considering that the apply of FIT in 2011, there have been more than 100 biomass power plant building jobs, and also 84 of them have actually been approved.



The federal government intends to boost the percentage of renewable energy by 2030, with solar energy occupying 15%, and also biomass as well as hydropower 10%. Besides, the government plan to build a biomass power zone to establish an extensive biomass power utilization system.



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



Future biomass pellets demand

FIP policy will certainly continue to promote the biomass power application in Japan. According to https://telescope.ac/richi-carmen-blog/sapz0dq6m281fto3nqjgki of Strauss, Japan will certainly require 15 million lots of biomass pellets in the mid-2020s.



Oriental

Renewable energy plan

Renewable Portfolio Requirement (RPS) plays an important role is Korean's wood pellet market because 2012. It calls for the power generation firm to raise the proportion of renewable energy from 2% to 10%.



Biomass power is anticipate to use up 50% -60% of sustainable power, amongst wind, solar, and water powers. With the implement of RPS, the need as well as import of wood pellets in Korean boost rapidly.



RPS can lower the power generation cost by affordable modern technology infiltration and increase renewable resource supply. However the nuclear power plant owners need to increase their management price.



Manufacturing and demand

According to the information of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not satisfy domestic demand As reported by Bloomberg New Power Financing, Korean's wood pellet need is 2.2 million loads in 2014, around 40% of England's. https://the-dots.com/projects/the-benefits-of-getting-a-wood-pellet-mill-880660 in Korean has increase 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 Australia.



Future demand.

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



China

Renewable energy plan

China's renewable energy industry matures quickly recently. In 2013, China's National Energy administration released a guideline on constructing a renewable energy profile standard. It calls for renewable energy needs to use up 15% of total energy usage by 2020, and also 20% in 2030. According to this regulation, the power generation company need to use specific portion of renewable resource. Yet the guidance and penalty system is not total.



Manufacturing, export and consumption

China has bountiful resource of biomass, including plant waste, branch, pet waste, natural drainage, city waste. According to the data of National Power Management, the forestry waste is 900 million tons annually, with 1/3 of them can be used as gas.




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



Owing to the except wood product supply and the increasing manufacturing expense, China's wood pellet cost enhances to 105 Euro/ton. So it is not as affordable as before.



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



Vietnam

Vietnam has several large-scale furniture makers. So there are abundant wood wastes to make wood pellets, and also the cost is the most affordable in Asia. And the big wood pellet plant in Asia can promote the economic climate of scale.



Vietnam is a major wood pellet merchant in Asia. It uses up 70% of Korean wood pellet market, and supplies competitive price as reduced as 90 Euro/ton to Oriental as well as Japan market. Besides, the transport price from Vietnam to Korean is fairly low.



Nevertheless, Korean is likely to elevate the wood pellet import standard, or announce the prospective buyers ahead of time. These policies will certainly impede Vietnam's trade with Oriental. At the same time, Japan will certainly prepare comparable plans to impede Vietnam suppliers from getting into Japan market.



Malaysia, Indonesia and Thailand

Compared with Vietnam, Malaysia, Indonesia as well as Thailand are all little wood pellets producers as well as merchants. In 2015, Indonesia and Malaysia specifically exported 150,000 tons as well as 60,000 lots of wood pellets to Korean. They also export percentage of Palm bit shells (PKS) to Japan. Drunk of supplement, top quality and quantity, the acquiring rate is high.

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