Notes

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



Japan

Stimulate plans

Japan has created a series of promote actions to promote renewable resource production and biomass power generation, such as the Basic Law of promoting biomass energy application in 2009 and state preparation to advertise biomass power application.



The most prominent plan is Fixed-price Support for Renewable Energy (FIT) performed considering that July 2012. According to this policy, Electric power business are required to have specific part of biomass energy power generation, like solar photovoltaics as well as biomass power at fixed price and duration. Since then, the wood pellets consumption grows up quickly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation portfolio come to be much more varied. Japan ministry of economy, trade as well as market (METI) re-exam the acquisition price of FIT each year, so the renewable resource expense is unpredictable for power generation firms.



Manufacturing, consumption as well as rate

According to the information of FAOSTAT in 2016, the residential wood pellets production is 90,000 lots in the past 5 years. But Japan need to import even more wood pellets due to the huge consumption. In 2015, it import 230,000 loads from Canada, China as well as Vietnam. Given wax pellet making machine and import quantity, Japan's wood pellets intake is 320,000 loads in 2015.



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



The intended biomass nuclear power plant

Because the apply of FIT in 2011, there have been greater than 100 biomass nuclear power plant building projects, and 84 of them have actually been approved.




The government intends to increase the proportion of renewable energy by 2030, with solar power taking up 15%, and biomass as well as hydropower 10%. Besides, the federal government plan to develop a biomass power area to develop a detailed biomass power use system.



Oji Eco-friendly Resources and Mitsubishi Paper Mills also constructed a joint endeavor enterprise to construct a 75MW biomass nuclear power plant in Aomori. It is expected to begin production in 2019.



Future biomass pellets demand

FIP plan will certainly 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 resource policy

Renewable Profile Criterion (RPS) plays an essential role is Korean's wood pellet market because 2012. It needs the power generation company to raise the percentage of renewable energy from 2% to 10%.



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



RPS can reduce the power generation expense by competitive innovation infiltration as well as increase renewable resource supply. Yet the nuclear power plant owners need to enhance their monitoring expense.



Production and need

According to the data of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not meet domestic need As reported by Bloomberg New Power Financing, Korean's wood pellet demand is 2.2 million loads in 2014, around 40% of England's. richi machinery in Korean has boost 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 Australia.



Future need.

As reported by Power Details Administration (EIA), Korean's need for wood pellets keep raising, driven by the RPS policy. Korean federal government has set an objective to import 5 million tons of wood pellets by 2020 to satisfy 75% of residential need. They will certainly be mainly imported from Canada, Southeast Asia and America.



China

Renewable energy policy

China's renewable energy market matures rapidly in the last few years. In 2013, China's National Energy management published a direction on building a renewable energy portfolio criterion. It requires renewable resource must take up 15% of overall energy consumption by 2020, as well as 20% in 2030. According to this guideline, the power generation firm should make use of certain part of renewable energy. However the supervision and fine system is not complete.



Manufacturing, export and usage

China has bountiful source of biomass, consisting of plant waste, branch, animal waste, natural waste water, metropolitan waste. According to the information of National Energy Administration, the forestry waste is 900 million heaps annually, with 1/3 of them can be made use of as gas.



In the past couple of years, China's wood pellet production rise swiftly. It exported 287,000 tons of wood pellets to Korean in 2014. But in 2015, the export declines rapidly when faced with Vietnam's low-price competitors, but the expanding Japan market creates new possibilities.



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



China's wood pellet usage is primarily in the eastern and also Guangdong province, where coal boilers are prohibited and the wood pellet cost is reduced.



Vietnam

Vietnam has numerous large-scale furniture manufacturers. So there are abundant 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 situation of range.



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



Nevertheless, Korean is most likely to increase the wood pellet import criterion, or announce the prospective buyers beforehand. These policies will impede Vietnam's trade with Korean. Meanwhile, Japan will certainly draw up similar policies to impede Vietnam dealerships from entering into Japan market.




Malaysia, Indonesia and also Thailand

Compared to Vietnam, Malaysia, Indonesia as well as Thailand are all little wood pellets manufacturers and also exporters. In 2015, Indonesia as well as Malaysia respectively exported 150,000 loads and 60,000 lots of wood pellets to Oriental. They likewise export percentage of Palm bit coverings (PKS) to Japan. Under the influence of supplement, quality and also quantity, the purchasing rate is high.


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