Notes

Asia wood pellet market analysis and prediction<br>
In Asia, Japan as well as Korean are major wood pellet importers, while China, Thailand, Vietnam, Indonesia and Malaysia are mostly wood pellets exporters. As the wood pellet market in Europe is anticipated to level off, Asia will be one more drive engine in the biomass pellet market.



Japan

Promote plans

Japan has actually prepared a series of stimulate measures to advertise renewable resource manufacturing and also biomass power generation, such as the Basic Law of promoting biomass power application in 2009 and state preparation to advertise biomass power application.



The most prominent policy is Fixed-price Support for Renewable Resource (FIT) carried out because July 2012. According to this plan, Electric power business are required to have particular section of biomass energy power generation, like solar photovoltaics and also biomass power at fixed price and duration. Since then, the wood pellets usage grows up rapidly in Japan.



After the Fukushima nuclear crash in 2010, the power generation profile become extra diversified. Japan ministry of economy, trade and also market (METI) re-exam the acquisition price of FIT every year, so the renewable resource cost is unsteady for power generation business.



Manufacturing, intake and also cost

According to the information of FAOSTAT in 2016, the domestic wood pellets production is 90,000 bunches in the past 5 years. Yet richi pellet to import more wood pellets as a result of the huge consumption. In 2015, it import 230,000 loads from Canada, China and Vietnam. Offered the domestic manufacturing and also import volume, Japan's wood pellets intake is 320,000 lots in 2015.



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



The intended biomass nuclear power plant

Because the implement of suit 2011, there have been greater than 100 biomass power plant building and construction jobs, as well as 84 of them have been approved.



The government aims to increase the percentage of renewable energy by 2030, with solar power taking up 15%, and also biomass and hydropower 10%. Besides, the government plan to develop a biomass power area to establish a thorough biomass energy utilization system.




Oji Green Resources and also Mitsubishi Paper Mills additionally built a joint endeavor business to construct a 75MW biomass power plant in Aomori. It is expected to begin production in 2019.



Future biomass pellets need

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



Korean

Renewable resource plan

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



Biomass power is expect to take up 50% -60% of renewable power, among wind, solar, as well as water powers. With the execute of RPS, the demand as well as import of wood pellets in Oriental rise rapidly.



RPS can decrease the power generation expense by competitive modern technology seepage and increase renewable resource supply. But the nuclear power plant owners have to enhance their administration cost.



Production as well as need

According to the information of FAOSTAT, The wood pellet manufacturing in Korean is 15,000 t, which can not fulfill domestic demand 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 increase 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, as well as Australia.



Future demand.

As reported by Power Info Administration (EIA), Korean's need for wood pellets keep enhancing, driven by the RPS plan. Oriental federal government has actually established an objective to import 5 million tons of wood pellets by 2020 to satisfy 75% of domestic need. They will certainly be primarily imported from Canada, Southeast Asia and America.



China

Renewable resource plan

China's renewable resource sector grows up quickly in the last few years. In 2013, China's National Power administration published a direction on developing a renewable resource profile criterion. It needs renewable energy must use up 15% of overall energy consumption by 2020, and 20% in 2030. According to this guideline, the power generation business ought to make use of particular portion of renewable energy. But the supervision as well as charge system is not total.



Manufacturing, export and also usage

China has bountiful source of biomass, consisting of crop waste, branch, animal waste, organic drainage, city rubbish. According to the data of National Energy Management, the forestry waste is 900 million heaps annually, with 1/3 of them can be utilized as gas.




In the past few years, China's wood pellet manufacturing increase rapidly. It exported 287,000 tons of wood pellets to Oriental in 2014. However in 2015, the export decreases rapidly in the face of Vietnam's low-price competition, yet the expanding Japan market produces brand-new chances.



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



China's wood pellet consumption is generally in the east and also Guangdong province, where coal central heating boilers are outlawed as well as the wood pellet price is lower.



Vietnam

Vietnam has numerous large furnishings suppliers. So there are abundant wood wastes to make wood pellets, and also the expense is the most affordable in Asia. As well as pellet mill die in Asia can advertise the economic situation of scale.



Vietnam is a major wood pellet exporter in Asia. It takes up 70% of Oriental wood pellet market, and also offers competitive rate as low as 90 Euro/ton to Oriental and Japan market. Besides, the transportation expense from Vietnam to Korean is rather reduced.



However, Oriental is likely to raise the wood pellet import criterion, or announce the prospective buyers beforehand. These policies will certainly prevent Vietnam's trade with Oriental. Meanwhile, Japan will certainly create similar policies to impede Vietnam dealerships from getting into Japan market.



Malaysia, Indonesia as well as Thailand

Compared to Vietnam, Malaysia, Indonesia as well as Thailand are all small wood pellets producers as well as merchants. In 2015, Indonesia and Malaysia respectively exported 150,000 lots and also 60,000 tons of wood pellets to Korean. They likewise export small amount of Palm bit shells (PKS) to Japan. Drunk of supplement, top quality and quantity, the investing in cost is high.


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