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 Malaysia are mostly wood pellets merchants. As the wood pellet market in Europe is anticipated to level off, Asia will be another drive engine in the biomass pellet industry.



Japan

Boost plans

Japan has created a series of boost actions to promote renewable resource manufacturing and biomass power generation, such as the Basic Legislation of advertising biomass energy application in 2009 and state planning to advertise biomass power application.



One of the most influential policy is Fixed-price Assistance for Renewable Resource (FIT) performed because July 2012. According to this policy, Electric power companies are obliged to have specific portion of biomass energy power generation, like solar photovoltaics and also biomass power at set price and period. Ever since, the wood pellets usage matures swiftly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation portfolio end up being much more diversified. Japan ministry of economic situation, trade and industry (METI) re-exam the acquisition rate of FIT yearly, so the renewable energy expense is unsteady for power generation firms.



Production, intake and price

According to the data of FAOSTAT in 2016, the residential wood pellets production is 90,000 loads in the past 5 years. Yet Japan require to import even more wood pellets due to the huge intake. In 2015, it import 230,000 bunches from Canada, China and also Vietnam. Given the domestic manufacturing and import quantity, Japan's wood pellets usage is 320,000 bunches in 2015.



Japan generally import top quality wood pellets and export low-grade pellets. The import cost is 178 Euro/ton, while the export rate is 129 Euro/ton.



The intended biomass power plants

Since the execute of suit 2011, there have been more than 100 biomass power plant building and construction tasks, and 84 of them have been approved.




The government intends to increase the percentage of renewable energy by 2030, with solar energy using up 15%, and also biomass and hydropower 10%. Besides, the federal government plan to construct a biomass energy area to develop a comprehensive biomass energy utilization system.



Oji Environment-friendly Resources and also Mitsubishi Paper Mills likewise built a joint venture business to develop a 75MW biomass power plant in Aomori. It is anticipated to begin 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 require 15 million lots of biomass pellets in the mid-2020s.



Oriental

Renewable resource policy

Renewable Portfolio Requirement (RPS) plays an essential role is Korean's wood pellet market because 2012. It calls for the power generation firm to raise the proportion of renewable energy from 2% to 10%.




Biomass energy is anticipate to take up 50% -60% of renewable power, amongst wind, solar, as well as water powers. With the apply of RPS, the need and also import of wood pellets in Oriental rise swiftly.



RPS can reduce the power generation cost by competitive modern technology seepage as well as elevate renewable energy supply. But the power plant proprietors have to enhance their management cost.



Production and need

According to the data of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not meet residential need As reported by Bloomberg New Power Money, 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 comes from Vietnam, and also others from Malaysia, Canada, America, Russia, Indonesia, and Australia.



Future need.

As reported by Power Details Administration (EIA), Korean's need for wood pellets maintain boosting, driven by the RPS policy. Oriental federal government has actually set a goal to import 5 million lots of wood pellets by 2020 to meet 75% of domestic demand. They will certainly be mainly imported from Canada, Southeast Asia as well as America.



China

Renewable energy plan

China's renewable energy industry grows up swiftly in recent times. In 2013, China's National Energy management published a guideline on building a renewable energy profile standard. It calls for renewable resource should use up 15% of total energy consumption by 2020, and also 20% in 2030. According to this policy, the power generation business should utilize specific part of renewable energy. But the guidance as well as fine system is not full.



Manufacturing, export and usage

China has plentiful source of biomass, consisting of crop waste, branch, animal waste, organic waste water, urban waste. According to the information of National Power Administration, the forestry waste is 900 million tons annually, with 1/3 of them can be made use of as gas.



In the past few years, China's wood pellet manufacturing increase rapidly. goat feed making machine exported 287,000 lots of wood pellets to Korean in 2014. However in 2015, the export decreases rapidly in the face of Vietnam's low-price competitors, however the expanding Japan market develops brand-new opportunities.



Owing to the short of wood product supply and also the enhancing manufacturing expense, China's wood pellet price increases to 105 Euro/ton. So it is not as affordable as before.



China's wood pellet intake is primarily in the east and also Guangdong province, where coal boilers are banned and the wood pellet price is reduced.



Vietnam

Vietnam has several large furniture manufacturers. So there are plentiful wood wastes to make wood pellets, and the price is the most affordable in Asia. And also the huge wood pellet plant in Asia can promote the economy of range.



Vietnam is a significant wood pellet merchant in Asia. It occupies 70% of Oriental wood pellet market, and also uses affordable rate as reduced as 90 Euro/ton to Korean and also Japan market. Besides, the transport expense from Vietnam to Korean is rather reduced.



Nonetheless, Korean is likely to raise the wood pellet import criterion, or introduce the bidders in advance. These plans will prevent Vietnam's trade with Korean. At the same time, Japan will certainly formulate comparable plans to impede Vietnam dealerships from entering into Japan market.



Malaysia, Indonesia and also Thailand

Compared with Vietnam, Malaysia, Indonesia and Thailand are all little wood pellets producers and also merchants. In 2015, Indonesia as well as Malaysia specifically exported 150,000 loads and also 60,000 tons of wood pellets to Korean. richi pellet export percentage of Hand bit coverings (PKS) to Japan. Under the influence of supplement, top quality and quantity, the acquiring price is high.


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