Notes

Asia wood pellet market analysis and prediction
Asia wood pellet market analysis and also prediction
In Asia, Japan and Korean are major wood pellet importers, while China, Thailand, Vietnam, Indonesia and also 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 sector.

Japan
Stimulate policies
Japan has drawn up a collection of boost steps to promote renewable energy manufacturing as well as biomass power generation, such as the Basic Legislation of advertising biomass energy application in 2009 and also state planning to advertise biomass power application.

One of the most influential policy is Fixed-price Support for Renewable Energy (FIT) accomplished considering that July 2012. According to this plan, Electric power business are obliged to have specific part of biomass energy power generation, like solar photovoltaics as well as biomass power at fixed price and period. Since then, the wood pellets intake matures swiftly in Japan.

After the Fukushima nuclear accident in 2010, the power generation profile come to be extra varied. Japan ministry of economic situation, trade and also market (METI) re-exam the acquisition cost of FIT yearly, so the renewable energy cost is unsteady for power generation companies.

Production, intake as well as rate
According to the data of FAOSTAT in 2016, the residential wood pellets production is 90,000 heaps in the past 5 years. However Japan need to import even more wood pellets due to the huge intake. In small pelletizer , it import 230,000 lots from Canada, China as well as Vietnam. Given the domestic manufacturing and import quantity, Japan's wood pellets consumption is 320,000 heaps in 2015.

Japan generally import top notch wood pellets and also 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 carry out of FIT in 2011, there have been more than 100 biomass nuclear power plant building jobs, and also 84 of them have actually been authorized.

The federal government aims to raise the percentage of renewable resource by 2030, with solar energy occupying 15%, and biomass and also hydropower 10%. Besides, the government strategy to develop a biomass power zone to establish a detailed biomass energy application system.

Oji Green Resources as well as Mitsubishi Paper Mills additionally constructed a joint endeavor enterprise to develop a 75MW biomass power plant in Aomori. It is expected to start production in 2019.

Future biomass pellets need
FIP plan will continue 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 energy plan
Renewable Profile Standard (RPS) plays an important role is Korean's wood pellet market considering that 2012. It needs the power generation firm to raise the percentage of renewable resource from 2% to 10%.

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

RPS can reduce the power generation price by competitive technology seepage and also raise renewable resource supply. Yet the nuclear power plant owners need to enhance their monitoring price.

Manufacturing as well as demand
According to the data of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not satisfy residential demand As reported by Bloomberg New Energy Finance, Korean's wood pellet demand is 2.2 million bunches 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, as well as Australia.

Future need.
As reported by Power Information Administration (EIA), Korean's demand for wood pellets keep increasing, driven by the RPS policy. Korean government has actually established an objective to import 5 million tons of wood pellets by 2020 to meet 75% of residential demand. They will certainly be primarily imported from Canada, Southeast Asia and also America.

China
Renewable energy plan
China's renewable resource sector grows up swiftly over the last few years. In 2013, China's National Energy administration published a guideline on constructing a renewable energy profile requirement. It requires renewable resource should occupy 15% of total energy usage by 2020, and 20% in 2030. According to this policy, the power generation firm must utilize particular section of renewable energy. Yet the supervision as well as charge system is not total.

Manufacturing, export as well as usage
China has abundant source of biomass, including crop waste, branch, animal waste, organic drainage, metropolitan trash. According to the information of National Energy Management, the forestry waste is 900 million loads each year, with 1/3 of them can be utilized as fuel.

In hormone pellet press , China's wood pellet production increase quickly. It exported 287,000 tons of wood pellets to Oriental in 2014. Yet in 2015, the export decreases rapidly in the face of Vietnam's low-price competitors, but the expanding Japan market creates new chances.

Owing to the except wood material supply and the increasing manufacturing price, China's wood pellet rate boosts to 105 Euro/ton. So it is not as competitive as in the past.

China's wood pellet consumption is mostly in the eastern and Guangdong province, where coal central heating boilers are outlawed and also the wood pellet cost is reduced.

Vietnam
Vietnam has many massive furnishings suppliers. So there are plentiful wood wastes to make wood pellets, and also the price is the most affordable in Asia. As well as the huge wood pellet plant in Asia can promote the economic climate of range.

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

Nevertheless, Oriental is most likely to raise the wood pellet import requirement, or announce the prospective buyers ahead of time. These plans will certainly prevent Vietnam's trade with Oriental. Meanwhile, Japan will certainly prepare comparable plans to prevent Vietnam dealerships from getting involved in Japan market.

Malaysia, Indonesia and also Thailand
Compared to Vietnam, Malaysia, Indonesia and also Thailand are all tiny wood pellets manufacturers and also merchants. In 2015, Indonesia and Malaysia respectively exported 150,000 tons and also 60,000 tons of wood pellets to Korean. They likewise export small amount of Hand kernel coverings (PKS) to Japan. Drunk of supplement, high quality and quantity, the getting rate is high.


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