Notes

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



Japan

Stimulate policies

Japan has formulated a collection of stimulate steps to promote renewable resource manufacturing as well as biomass power generation, such as the Basic Law of advertising biomass power application in 2009 as well as state planning to advertise biomass power application.



One of the most prominent plan is Fixed-price Support for Renewable Energy (FIT) executed considering that July 2012. According to this policy, Electric power firms are required to have certain part of biomass energy power generation, like solar photovoltaics and also biomass energy at fixed price and duration. Since then, the wood pellets intake grows up quickly in Japan.




After the Fukushima nuclear accident in 2010, the power generation portfolio end up being extra varied. Japan ministry of economy, trade as well as market (METI) re-exam the purchase price of FIT each year, so the renewable energy price is unstable for power generation business.



Production, intake and also cost

According to the data of FAOSTAT in 2016, the residential wood pellets manufacturing is 90,000 loads in the past 5 years. Yet 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. Offered the domestic production and also import volume, Japan's wood pellets usage is 320,000 loads in 2015.



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



The planned biomass power plants

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



The government aims to enhance the percentage of renewable energy by 2030, with solar energy occupying 15%, and biomass as well as hydropower 10%. Besides, the government strategy to construct a biomass power zone to develop a thorough biomass energy use system.



Oji Environment-friendly Resources and Mitsubishi Paper Mills also built a joint venture business to build a 75MW biomass power plant in Aomori. It is anticipated to start 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.



Korean

Renewable resource policy

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



Biomass energy is expect to take up 50% -60% of renewable power, amongst wind, solar, as well as water powers. With the apply of RPS, the need and import of wood pellets in Korean boost rapidly.



RPS can minimize the power generation price by competitive innovation infiltration and also increase renewable resource supply. But the nuclear power plant owners have to enhance their monitoring cost.



Manufacturing as well as demand

According to the data of FAOSTAT, The wood pellet manufacturing in Korean is 15,000 t, which can not meet residential need As reported by Bloomberg New Power Finance, Korean's wood pellet need is 2.2 million heaps in 2014, around 40% of England's. The wood pellet import in Korean has rise 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 also Australia.



Future demand.

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



China

Renewable resource plan

China's renewable energy market grows up swiftly recently. In 2013, China's National Energy administration released an instruction on developing a renewable resource profile standard. It calls for renewable energy must use up 15% of complete energy intake by 2020, as well as 20% in 2030. According to this policy, the power generation business must make use of certain section of renewable energy. Yet small wood pellet machine as well as charge system is not complete.



Manufacturing, export and intake

China has bountiful resource of biomass, including crop waste, branch, pet waste, natural waste water, metropolitan garbage. According to the information of National Power Management, the forestry waste is 900 million bunches every year, with 1/3 of them can be utilized as fuel.



In the past couple of years, China's wood pellet manufacturing rise swiftly. It exported 287,000 tons of wood pellets to Oriental in 2014. But in 2015, the export decreases rapidly despite Vietnam's low-price competitors, but the growing Japan market produces brand-new possibilities.



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



China's wood pellet consumption is mostly in the eastern and Guangdong district, where coal central heating boilers are outlawed and the wood pellet cost is reduced.



Vietnam

Vietnam has many large furniture makers. So there are abundant wood wastes to make wood pellets, and the expense is the lowest in Asia. And also the huge wood pellet plant in Asia can advertise the economic climate of scale.



Vietnam is a major wood pellet exporter in Asia. It occupies 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, https://patch.com/maryland/northbaltimore/classifieds/for-sale/334685/owning-a-wood-pellet-mill from Vietnam to Korean is rather low.



Nonetheless, Korean is likely to increase the wood pellet import criterion, or reveal the prospective buyers beforehand. These policies will impede Vietnam's trade with Oriental. On the other hand, Japan will certainly prepare comparable plans to prevent Vietnam dealers from entering Japan market.



Malaysia, Indonesia and Thailand

Compared with Vietnam, Malaysia, Indonesia as well as Thailand are all little wood pellets manufacturers and also merchants. In 2015, Indonesia and also Malaysia specifically exported 150,000 bunches and also 60,000 tons of wood pellets to Korean. They likewise export percentage of Hand kernel shells (PKS) to Japan. Under the influence of supplement, high quality and also amount, the buying cost is high.


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