Notes

Asia wood pellet market analysis and also prediction<br>
In Asia, Japan as well as Korean are significant wood pellet importers, while China, Thailand, Vietnam, Indonesia and also Malaysia are mostly wood pellets exporters. As chicken feed machine 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 formulated a series of stimulate procedures to advertise renewable resource production as well as biomass power generation, such as the Basic Legislation of advertising biomass energy application in 2009 as well as state preparation to promote biomass energy application.



The most influential plan is Fixed-price Support for Renewable Resource (FIT) accomplished because July 2012. According to this policy, Electric power firms are obliged to have specific part of biomass energy power generation, like solar photovoltaics as well as biomass energy at set price and period. Ever since, the wood pellets intake matures rapidly in Japan.



After the Fukushima nuclear accident in 2010, the power generation portfolio come to be more varied. Japan ministry of economic situation, profession and also market (METI) re-exam the acquisition cost of FIT annually, so the renewable energy expense is unpredictable for power generation business.



Production, consumption and also cost

According to the data of FAOSTAT in 2016, the residential wood pellets production is 90,000 lots in the past 5 years. But Japan require to import even more wood pellets because of the big intake. In 2015, it import 230,000 lots from Canada, China as well as Vietnam. Offered the domestic production as well as import volume, Japan's wood pellets usage is 320,000 lots in 2015.



Japan normally import high-grade wood pellets as well as export low-grade pellets. The import price is 178 Euro/ton, while the export price is 129 Euro/ton.



The prepared biomass power plants

Considering that the implement of suit 2011, there have been greater than 100 biomass nuclear power plant building and construction projects, as well as 84 of them have been accepted.



The government intends to raise the percentage of renewable energy by 2030, with solar energy occupying 15%, as well as biomass and hydropower 10%. Besides, the government strategy to build a biomass power area to develop a comprehensive biomass energy usage system.



Oji Green Resources and also Mitsubishi Paper Mills additionally constructed a joint endeavor business to build a 75MW biomass power plant in Aomori. It is expected to start production in 2019.




Future biomass pellets demand

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



Oriental

Renewable resource plan

Renewable Portfolio Criterion (RPS) plays an important role is Korean's wood pellet market since 2012. It needs the power generation firm to increase the percentage of renewable energy from 2% to 10%.



Biomass energy is expect to occupy 50% -60% of sustainable power, amongst wind, solar, and water powers. With the execute of RPS, the demand and also import of wood pellets in Oriental boost swiftly.



RPS can lower the power generation expense by competitive modern technology infiltration and elevate renewable energy supply. However the nuclear power plant owners have to increase their management expense.



Manufacturing and also need

According to the information of FAOSTAT, The wood pellet manufacturing in Korean is 15,000 t, which can not meet domestic need As reported by Bloomberg New Power Money, Korean's wood pellet need is 2.2 million tons in 2014, around 40% of England's. The wood pellet import in Korean has boost 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, and Australia.



Future demand.

As reported by Power Info Administration (EIA), Korean's demand for wood pellets maintain boosting, driven by the RPS policy. Oriental federal government has actually established an objective to import 5 million lots of wood pellets by 2020 to fulfill 75% of residential need. They will be primarily imported from Canada, Southeast Asia and America.



China

Renewable energy plan

China's renewable resource sector matures swiftly in recent years. In 2013, China's National Power administration published a guideline on developing a renewable energy portfolio requirement. It calls for renewable energy should use up 15% of total power consumption by 2020, and also 20% in 2030. According to this policy, the power generation firm must make use of certain part of renewable energy. Yet the guidance as well as fine system is not full.



Manufacturing, export as well as usage

China has plentiful source of biomass, consisting of plant waste, branch, pet waste, organic drainage, urban garbage. According to the information of National Power Administration, the forestry waste is 900 million bunches each year, with 1/3 of them can be made use of as gas.



In the past few years, China's wood pellet manufacturing increase quickly. It exported 287,000 lots of wood pellets to Korean in 2014. But in 2015, the export decreases rapidly in the face of Vietnam's low-price competition, however the growing Japan market produces new opportunities.



Owing to the short of wood material supply as well as the boosting manufacturing cost, China's wood pellet price increases to 105 Euro/ton. So it is not as affordable as before.



China's wood pellet intake is mainly in the east as well as Guangdong province, where coal central heating boilers are outlawed as well as the wood pellet cost is lower.



Vietnam

Vietnam has several massive furnishings manufacturers. So there are bountiful wood wastes to make wood pellets, as well as the expense is the lowest in Asia. And also the large wood pellet plant in Asia can advertise the economic climate of range.



Vietnam is a significant wood pellet exporter in Asia. It takes up 70% of Oriental wood pellet market, and also supplies competitive cost as low as 90 Euro/ton to Oriental as well as Japan market. Besides, the transport expense from Vietnam to Korean is fairly low.



Nonetheless, Oriental is likely to elevate the wood pellet import criterion, or announce the bidders beforehand. These policies will impede Vietnam's trade with Oriental. At the same time, Japan will create comparable policies to prevent Vietnam suppliers from entering Japan market.



Malaysia, Indonesia and Thailand

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


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