Notes

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

Boost policies

Japan has prepared a collection of promote procedures to promote renewable energy manufacturing and biomass power generation, such as the Basic Regulation of advertising biomass energy application in 2009 and also state preparation to advertise biomass power application.



One of the most influential plan is Fixed-price Assistance for Renewable Resource (FIT) carried out since July 2012. According to this policy, Electric power companies are required to have certain portion of biomass energy power generation, like solar photovoltaics and biomass energy at fixed price and also duration. Ever since, the wood pellets intake grows up quickly in Japan.



After the Fukushima nuclear accident in 2010, the power generation profile come to be extra varied. https://richimachinery.pixnet.net/blog of economic situation, profession and also industry (METI) re-exam the acquisition cost of FIT every year, so the renewable resource cost is unstable for power generation business.



Manufacturing, consumption and also cost

According to the data of FAOSTAT in 2016, the domestic wood pellets production is 90,000 lots in the past 5 years. Yet Japan need to import even more wood pellets because of the large consumption. In 2015, it import 230,000 lots from Canada, China as well as Vietnam. Provided the domestic manufacturing and also import volume, Japan's wood pellets consumption is 320,000 heaps in 2015.



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



The planned biomass power plants

Since the carry out of suit 2011, there have been more than 100 biomass power plant construction tasks, and 84 of them have actually been accepted.




The government intends to raise the percentage of renewable resource by 2030, with solar energy taking up 15%, as well as biomass and hydropower 10%. Besides, the federal government plan to build a biomass energy area to develop an extensive biomass energy use system.



Oji Environment-friendly Resources as well as Mitsubishi Paper Mills also built a joint venture enterprise to build a 75MW biomass power plant in Aomori. It is expected to begin production in 2019.



Future biomass pellets demand

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



Oriental

Renewable resource plan

Renewable Profile Criterion (RPS) plays a crucial role is Korean's wood pellet market because 2012. It calls for the power generation company to increase the proportion of renewable resource from 2% to 10%.



Biomass power is anticipate to take up 50% -60% of eco-friendly power, amongst wind, solar, and water powers. With the apply of RPS, the demand as well as import of wood pellets in Korean increase swiftly.



RPS can reduce the power generation cost by competitive innovation infiltration and elevate renewable resource supply. But the power plant owners need to raise their monitoring price.



Manufacturing and need

According to the data of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not satisfy residential need As reported by Bloomberg New Energy Financing, Korean's wood pellet need is 2.2 million tons 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 comes from Vietnam, as well as others from Malaysia, Canada, America, Russia, Indonesia, as well as Australia.



Future demand.

As reported by Energy Details Administration (EIA), Korean's demand for wood pellets maintain raising, driven by the RPS plan. Oriental federal government has actually established a goal to import 5 million lots of wood pellets by 2020 to fulfill 75% of residential demand. They will certainly be mainly imported from Canada, Southeast Asia and America.



China

Renewable energy policy

China's renewable resource industry grows up rapidly in recent years. In 2013, China's National Power administration released a guideline on building a renewable energy portfolio criterion. It calls for renewable resource needs to use up 15% of overall power intake by 2020, and 20% in 2030. According to this guideline, the power generation business ought to make use of particular section of renewable energy. But the supervision as well as fine system is not complete.



Manufacturing, export and also consumption

China has plentiful resource of biomass, consisting of crop waste, branch, pet waste, natural drainage, metropolitan rubbish. According to the data of National Energy Management, the forestry waste is 900 million lots annually, with 1/3 of them can be utilized as fuel.



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




Owing to the short of wood product supply and also the increasing manufacturing expense, China's wood pellet price increases to 105 Euro/ton. So it is not as competitive as before.



China's wood pellet intake is mostly in the eastern and Guangdong district, where coal central heating boilers are outlawed as well as the wood pellet expense is lower.



Vietnam

Vietnam has lots of large furnishings suppliers. So there are Richi machine to make wood pellets, and also the price is the most affordable in Asia. And also the large wood pellet plant in Asia can advertise the economic climate of range.



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



Nevertheless, Korean is most likely to raise the wood pellet import criterion, or announce the prospective buyers beforehand. These plans will certainly hinder Vietnam's trade with Korean. On the other hand, Japan will prepare comparable plans to prevent Vietnam dealers from getting involved in Japan market.



Malaysia, Indonesia and Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all little wood pellets producers and also exporters. In 2015, Indonesia as well as Malaysia respectively exported 150,000 heaps and 60,000 lots of wood pellets to Korean. They additionally export percentage of Palm kernel shells (PKS) to Japan. Under the influence of supplement, top quality as well as quantity, the acquiring rate is high.


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