Notes

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



Japan

Boost plans

Japan has created a collection of stimulate steps to advertise renewable energy production and also biomass power generation, such as the Basic Regulation of promoting biomass power application in 2009 and state preparation to advertise biomass power application.



The most influential policy is Fixed-price Assistance for Renewable Resource (FIT) accomplished considering that July 2012. According to this plan, Electric power business are obliged to have particular part of biomass energy power generation, like solar photovoltaics and biomass power at set price and also duration. Ever since, the wood pellets usage matures rapidly in Japan.



After the Fukushima nuclear accident in 2010, the power generation profile become a lot more varied. Japan ministry of economic climate, trade as well as industry (METI) re-exam the acquisition rate of FIT annually, so the renewable energy expense is unpredictable for power generation companies.



Manufacturing, usage as well as cost

According to the data of FAOSTAT in 2016, the domestic wood pellets production is 90,000 bunches in the past 5 years. However Japan need to import even more wood pellets as a result of the big intake. In 2015, it import 230,000 tons from Canada, China and Vietnam. Given the domestic production and import volume, Japan's wood pellets intake is 320,000 lots in 2015.



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



The intended biomass nuclear power plant

Since the carry out of FIT in 2011, there have actually been greater than 100 biomass nuclear power plant construction tasks, and 84 of them have been approved.



The government intends to enhance the proportion of renewable energy by 2030, with solar energy occupying 15%, and biomass and hydropower 10%. Besides, the federal government plan to develop a biomass power zone to develop a comprehensive biomass power usage system.



Oji Environment-friendly Resources and Mitsubishi Paper Mills additionally developed a joint venture enterprise to construct a 75MW biomass power plant in Aomori. It is expected to start production in 2019.



Future biomass pellets demand

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



Korean

Renewable resource policy

Renewable Portfolio Standard (RPS) plays a vital role is Korean's wood pellet market since 2012. It requires the power generation company to elevate the percentage of renewable resource from 2% to 10%.



Biomass power is anticipate to use up 50% -60% of renewable power, among wind, solar, and also water powers. With the apply of RPS, the demand and import of wood pellets in Oriental boost rapidly.



RPS can decrease the power generation price by affordable technology infiltration and also raise renewable energy supply. Yet the nuclear power plant proprietors need to raise their administration cost.



Manufacturing and need

According to the data of FAOSTAT, The wood pellet manufacturing in Oriental is 15,000 t, which can not fulfill residential need As reported by Bloomberg New Power Financing, Korean's wood pellet need is 2.2 million bunches in 2014, around 40% of England's. Visit Your URL in Korean has rise from 122,000 t in 2012 to 1850,000 t in 2014. 70% of them comes from Vietnam, and others from Malaysia, Canada, America, Russia, Indonesia, and also Australia.



Future demand.

As reported by Power Details Management (EIA), Korean's demand for wood pellets maintain raising, driven by the RPS policy. Oriental federal government has set an objective to import 5 million tons of wood pellets by 2020 to fulfill 75% of domestic need. They will be mainly imported from Canada, Southeast Asia and also America.



China

Renewable energy policy

China's renewable resource market grows up quickly recently. In 2013, China's National Energy administration published an instruction on constructing a renewable energy profile requirement. It needs renewable resource ought to take up 15% of overall energy intake by 2020, and 20% in 2030. According to this guideline, the power generation company ought to make use of specific section of renewable energy. However the supervision as well as charge system is not complete.




Manufacturing, export and consumption

China has bountiful resource of biomass, consisting of crop waste, branch, pet waste, organic drainage, 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 made use of as fuel.



In the past couple of years, China's wood pellet manufacturing boost swiftly. It exported 287,000 tons of wood pellets to Oriental in 2014. Yet in 2015, the export declines swiftly in the face of Vietnam's low-price competitors, yet the growing Japan market produces new chances.



Owing to the except wood material supply and the enhancing manufacturing price, China's wood pellet rate enhances to 105 Euro/ton. So it is not as competitive as before.



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



Vietnam

Vietnam has numerous large furniture makers. So there are abundant wood wastes to make wood pellets, and the price is the lowest in Asia. And also the big wood pellet plant in Asia can promote the economic climate of range.




Vietnam is a significant wood pellet exporter in Asia. It uses up 70% of Oriental wood pellet market, and also uses affordable rate as low as 90 Euro/ton to Oriental as well as Japan market. Besides, the transportation price from Vietnam to Korean is quite low.



Nevertheless, Oriental is most likely to raise the wood pellet import requirement, or introduce the bidders ahead of time. These policies will certainly prevent Vietnam's trade with Oriental. On the other hand, Japan will formulate comparable policies to impede Vietnam dealers from entering into Japan market.



Malaysia, Indonesia and Thailand

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


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