Notes

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



Japan

Promote policies

Japan has actually prepared a collection of stimulate measures to advertise renewable energy production and biomass power generation, such as the Basic Law of advertising biomass energy application in 2009 and also state preparation to promote biomass power application.



One of the most prominent policy is Fixed-price Assistance for Renewable Resource (FIT) performed since July 2012. According to this plan, Electric power firms are required to have certain part of biomass energy power generation, like solar photovoltaics and biomass power at fixed price as well as period. Ever since, the wood pellets intake matures swiftly in Japan.



After the Fukushima nuclear crash in 2010, the power generation profile become extra diversified. Japan ministry of economy, trade as well as sector (METI) re-exam the purchase rate of FIT every year, so the renewable resource cost is unstable for power generation firms.



Manufacturing, consumption as well as price

According to the information of FAOSTAT in 2016, the domestic wood pellets manufacturing is 90,000 bunches in the past 5 years. But Japan need to import more wood pellets as a result of the huge intake. In 2015, it import 230,000 lots from Canada, China as well as Vietnam. Provided plastic pelletizer machine manufacturing and import volume, Japan's wood pellets usage is 320,000 heaps in 2015.



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



The intended biomass power plants

Given that the implement of suit 2011, there have been greater than 100 biomass power plant building and construction tasks, and also 84 of them have actually been approved.



The federal government aims to boost the percentage of renewable energy by 2030, with solar energy taking up 15%, and biomass and also hydropower 10%. Besides, the federal government plan to build a biomass energy zone to establish an extensive biomass power use system.



Oji Eco-friendly Resources as well as Mitsubishi Paper Mills additionally constructed a joint endeavor enterprise to develop a 75MW biomass nuclear power plant in Aomori. It is expected to start production in 2019.



Future biomass pellets need

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



Oriental

Renewable resource plan

Renewable Portfolio Criterion (RPS) plays an important duty is Korean's wood pellet market given that 2012. jones pellet machine calls for the power generation company to increase the proportion of renewable energy from 2% to 10%.



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



RPS can minimize the power generation cost by affordable modern technology seepage and raise renewable resource supply. But the nuclear power plant owners need to raise their administration price.



Manufacturing as well as need

According to the data of FAOSTAT, The wood pellet manufacturing in Oriental is 15,000 t, which can not satisfy domestic need As reported by Bloomberg New Energy Financing, 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 comes from Vietnam, and also others from Malaysia, Canada, America, Russia, Indonesia, and Australia.



Future need.

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



China

Renewable energy plan

China's renewable resource market grows up quickly recently. In 2013, China's National Power administration released a guideline on developing a renewable resource portfolio criterion. It requires renewable resource needs to use up 15% of total energy consumption by 2020, as well as 20% in 2030. According to this law, the power generation company must make use of certain part of renewable energy. However the supervision and penalty system is not complete.



Production, export and usage

China has plentiful source of biomass, consisting of crop waste, branch, pet waste, organic waste water, metropolitan trash. According to the data of National Energy Administration, the forestry waste is 900 million bunches each year, with 1/3 of them can be used as fuel.



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





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



China's wood pellet consumption is generally in the east as well as Guangdong province, where coal boilers are banned as well as the wood pellet expense is lower.



Vietnam

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



Vietnam is a major wood pellet exporter in Asia. It uses up 70% of Korean wood pellet market, and provides competitive price as reduced as 90 Euro/ton to Oriental and also Japan market. Besides, the transportation cost from Vietnam to Korean is quite reduced.



Nonetheless, Oriental is likely to increase the wood pellet import standard, or introduce the prospective buyers beforehand. These plans will certainly prevent Vietnam's trade with Oriental. At the same time, Japan will formulate comparable plans to impede Vietnam dealers from entering Japan market.



Malaysia, Indonesia and Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all tiny wood pellets manufacturers and merchants. In manual pellet making machine , Indonesia as well as Malaysia respectively exported 150,000 bunches and 60,000 tons of wood pellets to Korean. They also export percentage of Palm kernel shells (PKS) to Japan. Under the influence of supplement, high quality and amount, the acquiring price is high.


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