Notes

Asia wood pellet market analysis and also 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 be another drive engine in the biomass pellet sector.



Japan

Stimulate policies

Japan has created a series of promote procedures to advertise renewable energy production as well as biomass power generation, such as the Basic Legislation of promoting biomass energy application in 2009 as well as state planning to promote biomass energy application.



One of the most significant plan is Fixed-price Assistance for Renewable Resource (FIT) performed given that July 2012. According to this policy, Electric power companies are required to have specific part of biomass energy power generation, like solar photovoltaics as well as biomass energy at fixed price and period. Since then, the wood pellets intake matures rapidly in Japan.



After the Fukushima nuclear crash in 2010, the power generation portfolio become extra varied. Japan ministry of economic climate, trade as well as industry (METI) re-exam the purchase cost of FIT yearly, so the renewable resource expense is unsteady for power generation firms.



Manufacturing, intake and rate

According to the information of FAOSTAT in 2016, the domestic wood pellets production is 90,000 bunches in the past 5 years. Yet Japan require to import more wood pellets because of the big consumption. In 2015, it import 230,000 lots from Canada, China and Vietnam. Given the residential manufacturing and also import volume, Japan's wood pellets consumption is 320,000 heaps in 2015.



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



The prepared biomass nuclear power plant

Considering that the carry out of suit 2011, there have been more than 100 biomass power plant construction tasks, and also 84 of them have actually been approved.




The federal government aims to boost the proportion of renewable resource by 2030, with solar energy taking up 15%, as well as biomass and hydropower 10%. Besides, the government strategy to construct a biomass power zone to establish an extensive biomass energy application system.



Oji Eco-friendly Resources as well as Mitsubishi Paper Mills additionally built 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 policy will remain to advertise the biomass energy application in Japan. According to the prediction of Strauss, Japan will certainly require 15 million tons of biomass pellets in the mid-2020s.




Oriental

Renewable resource policy

Renewable Profile Requirement (RPS) plays a vital duty is Korean's wood pellet market since 2012. It requires the power generation business to raise the proportion of renewable energy from 2% to 10%.



Biomass power is expect to take up 50% -60% of eco-friendly power, amongst wind, solar, and also water powers. With the apply of RPS, the demand and import of wood pellets in Korean boost rapidly.



RPS can lower the power generation expense by competitive technology infiltration and elevate renewable energy supply. But the nuclear power plant proprietors have to raise their administration price.



Production and also need

According to the data of FAOSTAT, The wood pellet production in Oriental is 15,000 t, which can not meet domestic demand As reported by Bloomberg New Energy Finance, 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, as well as Australia.



Future demand.

As reported by Power Information Administration (EIA), Korean's demand for wood pellets keep enhancing, driven by the RPS plan. Oriental federal government has actually set an objective to import 5 million lots of wood pellets by 2020 to satisfy 75% of domestic demand. They will certainly be generally imported from Canada, Southeast Asia as well as America.



China

Renewable resource policy

China's renewable energy sector grows up quickly in recent times. In 2013, China's National Power administration released a guideline on constructing a renewable resource portfolio criterion. It requires renewable resource must occupy 15% of complete energy intake by 2020, and 20% in 2030. According to this regulation, the power generation firm should use certain portion of renewable resource. However animal feed pellet making machine for sale and charge system is not total.



Manufacturing, export and consumption

China has abundant source of biomass, including crop waste, branch, pet waste, organic waste water, metropolitan rubbish. According to the information of National Energy Administration, the forestry waste is 900 million lots every year, with 1/3 of them can be used as gas.



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 decreases swiftly when faced with Vietnam's low-price competition, but the growing Japan market creates brand-new possibilities.



Owing to the except wood product supply as well as the boosting manufacturing expense, China's wood pellet rate boosts to 105 Euro/ton. So it is not as competitive as before.



China's wood pellet consumption is mainly in the eastern and also Guangdong district, where coal central heating boilers are outlawed and also the wood pellet price is lower.



Vietnam

Vietnam has numerous large-scale furniture suppliers. So there are wood pellet making equipment to make wood pellets, and also the price is the lowest in Asia. As well as the big wood pellet plant in Asia can promote the economy of range.



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



Nevertheless, Oriental is most likely to elevate the wood pellet import criterion, or reveal the bidders ahead of time. These policies will certainly hinder Vietnam's trade with Oriental. Meanwhile, Japan will draw up similar plans to hinder Vietnam dealers from getting into Japan market.



Malaysia, Indonesia and also Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all little wood pellets producers and also exporters. In 2015, Indonesia and Malaysia respectively exported 150,000 bunches and also 60,000 tons of wood pellets to Korean. They additionally export percentage of Hand bit shells (PKS) to Japan. Under the influence of supplement, quality and amount, the acquiring cost is high.


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