Notes

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



Japan

Boost policies

Japan has actually drawn up a collection of stimulate actions to advertise renewable resource production and biomass power generation, such as the Basic Law of promoting biomass energy application in 2009 and state planning to promote biomass energy application.



The most influential plan is Fixed-price Assistance for Renewable Energy (FIT) accomplished considering that July 2012. According to this plan, Electric power business are required to have particular portion of biomass energy power generation, like solar photovoltaics as well as biomass energy at fixed price as well as duration. Since then, the wood pellets consumption grows up swiftly in Japan.



After the Fukushima nuclear crash in 2010, the power generation portfolio end up being a lot more diversified. Japan ministry of economy, trade as well as sector (METI) re-exam the acquisition cost of FIT each year, so the renewable energy expense is unsteady for power generation companies.



Production, consumption as well as rate


According to the information of FAOSTAT in 2016, the domestic wood pellets manufacturing is 90,000 heaps in the past 5 years. However Japan need to import more wood pellets due to the large consumption. In 2015, it import 230,000 loads from Canada, China and also Vietnam. Provided the domestic manufacturing as well as import quantity, Japan's wood pellets intake is 320,000 loads in 2015.



Japan generally import high-quality 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 prepared biomass power plants

Because the carry out of FIT in 2011, there have actually been more than 100 biomass power plant construction projects, and also 84 of them have been authorized.




The government aims to boost the percentage of renewable energy by 2030, with solar energy using up 15%, and biomass and hydropower 10%. Besides, the government plan to construct a biomass power zone to develop a thorough biomass energy application system.



Oji Environment-friendly Resources and Mitsubishi Paper Mills likewise developed a joint venture business to construct a 75MW biomass power plant in Aomori. It is expected to begin manufacturing in 2019.



Future biomass pellets need

FIP plan will certainly continue to promote the biomass power application in Japan. According to the prediction of Strauss, Japan will certainly require 15 million lots of biomass pellets in the mid-2020s.



Korean

Renewable energy policy

Renewable Profile Requirement (RPS) plays an essential role is Korean's wood pellet market given that 2012. It requires the power generation company to increase the proportion of renewable resource from 2% to 10%.



Biomass power is expect to take up 50% -60% of renewable power, amongst wind, solar, as well as water powers. With homemade wood pellet machine of RPS, the demand and import of wood pellets in Oriental increase swiftly.



RPS can lower the power generation price by competitive modern technology seepage and increase renewable resource supply. Yet the power plant owners need to boost their monitoring cost.



Production as well as demand

According to the information of FAOSTAT, The wood pellet manufacturing in Korean is 15,000 t, which can not satisfy residential need As reported by Bloomberg New Power Finance, Korean's wood pellet need is 2.2 million lots 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, and others from Malaysia, Canada, America, Russia, Indonesia, as well as Australia.



Future need.

As reported by Energy Details Management (EIA), Korean's demand for wood pellets maintain increasing, driven by the RPS plan. Korean government has actually established a goal to import 5 million tons of wood pellets by 2020 to meet 75% of residential need. They will be primarily imported from Canada, Southeast Asia and America.



China

Renewable energy plan

China's renewable resource sector grows up swiftly in recent years. In 2013, China's National Power management released an instruction on developing a renewable resource profile requirement. It calls for renewable energy must use up 15% of overall energy intake by 2020, as well as 20% in 2030. According to this regulation, the power generation business ought to utilize specific part of renewable energy. But the guidance as well as fine system is not full.



Manufacturing, export as well as consumption

China has bountiful resource of biomass, including plant waste, branch, pet waste, natural drainage, urban trash. According to the data of National Power Management, the forestry waste is 900 million bunches annually, with 1/3 of them can be utilized as fuel.



In the past couple of years, China's wood pellet production boost quickly. It exported 287,000 lots of wood pellets to Korean in 2014. However in 2015, the export declines swiftly in the face of Vietnam's low-price competitors, but the growing Japan market produces brand-new chances.



Owing to the short of wood material supply and also the raising manufacturing cost, China's wood pellet rate enhances to 105 Euro/ton. So it is not as affordable as previously.



China's wood pellet intake is mostly in the east and Guangdong province, where coal boilers are prohibited as well as the wood pellet cost is lower.



Vietnam

Vietnam has numerous massive furniture producers. So there are bountiful wood wastes to make wood pellets, as well as the expense is the most affordable in Asia. As well as the large wood pellet plant in Asia can advertise the economic climate of scale.



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



Nevertheless, Oriental is most likely to elevate the wood pellet import requirement, or reveal the prospective buyers ahead of time. These policies will certainly hinder Vietnam's trade with Oriental. At richi pellet machine , Japan will draw up similar plans to prevent Vietnam dealerships from getting involved in Japan market.



Malaysia, Indonesia and also Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all small wood pellets manufacturers as well as merchants. In 2015, Indonesia and also Malaysia specifically exported 150,000 tons and 60,000 lots of wood pellets to Oriental. They also export percentage of Palm bit coverings (PKS) to Japan. Under the influence of supplement, high quality as well as amount, the purchasing cost is high.


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