Notes

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



Japan

Promote plans

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



One of the most influential policy is Fixed-price Support for Renewable Resource (FIT) carried out since July 2012. According to this policy, Electric power firms are obliged to have certain portion of biomass energy power generation, like solar photovoltaics and biomass power at fixed price and also duration. Since then, the wood pellets usage grows up quickly in Japan.



After the Fukushima nuclear mishap in 2010, the power generation profile become a lot more diversified. Japan ministry of economy, profession and also market (METI) re-exam the acquisition price of FIT every year, so the renewable energy cost is unpredictable for power generation companies.



Production, consumption and also rate

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



Japan typically import high-grade wood pellets and also export low-quality pellets. The import rate is 178 Euro/ton, while the export rate is 129 Euro/ton.



The planned biomass power plants

Since the implement of suit 2011, there have actually been more than 100 biomass power plant construction tasks, and 84 of them have actually been authorized.



The federal government aims to increase the percentage of renewable energy by 2030, with solar energy taking up 15%, as well as biomass and hydropower 10%. Besides, the government plan to construct a biomass energy zone to establish a thorough biomass power usage system.




Oji Environment-friendly Resources as well as Mitsubishi Paper Mills likewise constructed a joint venture enterprise to build a 75MW biomass power plant in Aomori. It is anticipated to begin production in 2019.



Future biomass pellets demand

FIP plan will certainly continue 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 energy policy

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



Biomass power is expect to occupy 50% -60% of renewable power, amongst wind, solar, and water powers. With the implement of RPS, the demand and also import of wood pellets in Korean boost quickly.



RPS can minimize the power generation expense by competitive modern technology infiltration and elevate renewable energy supply. But the nuclear power plant owners have to raise their management price.



Production and need


According to the information of FAOSTAT, The wood pellet production in Korean is 15,000 t, which can not satisfy residential need As reported by Bloomberg New Energy Finance, Korean's wood pellet demand is 2.2 million loads in 2014, around 40% of England's. The wood pellet import in Korean has boost from 122,000 t in 2012 to 1850,000 t in 2014. 70% of them originates from Vietnam, and others from Malaysia, Canada, America, Russia, Indonesia, and Australia.



Future need.

As reported by Power Information Administration (EIA), Korean's demand for wood pellets keep raising, driven by the RPS policy. Korean federal government has actually established an objective to import 5 million lots of wood pellets by 2020 to fulfill 75% of domestic demand. hand pellet machine will be generally imported from Canada, Southeast Asia and also America.



China

Renewable resource plan

China's renewable energy sector grows up quickly in the last few years. In 2013, China's National Power management published an instruction on developing a renewable energy profile requirement. It calls for renewable resource ought to occupy 15% of overall power intake by 2020, as well as 20% in 2030. According to this regulation, the power generation business ought to use specific section of renewable energy. However the supervision and also penalty system is not full.



Production, export as well as intake

China has abundant source of biomass, including plant waste, branch, pet waste, organic waste water, urban waste. According to the information of National Power Administration, the forestry waste is 900 million lots each year, with 1/3 of them can be made use of as fuel.



In the past few years, China's wood pellet manufacturing boost rapidly. It exported 287,000 tons of wood pellets to Oriental in 2014. Yet in 2015, the export decreases quickly despite Vietnam's low-price competition, however the growing Japan market creates new opportunities.



Owing to the except wood material supply and also the raising manufacturing expense, China's wood pellet rate raises to 105 Euro/ton. So it is not as competitive as previously.



China's wood pellet consumption is primarily in the eastern and Guangdong province, where coal central heating boilers are banned and the wood pellet cost is lower.



Vietnam

Vietnam has many large furniture suppliers. So there are abundant wood wastes to make wood pellets, and the cost is the lowest in Asia. As well as the big wood pellet plant in Asia can promote the economic climate of scale.



Vietnam is a major wood pellet exporter in Asia. It uses up 70% of Oriental wood pellet market, as well as offers affordable price as reduced as 90 Euro/ton to Korean as well as Japan market. Besides, the transportation cost from Vietnam to Korean is fairly reduced.



However, Korean is likely to raise the wood pellet import criterion, or reveal the prospective buyers beforehand. These policies will certainly hinder Vietnam's trade with Korean. At the same time, Japan will draw up comparable plans to prevent Vietnam dealerships from getting involved in Japan market.



Malaysia, Indonesia and also Thailand

Compared to Vietnam, Malaysia, Indonesia and Thailand are all tiny wood pellets manufacturers and also exporters. In 2015, Indonesia as well as Malaysia respectively exported 150,000 loads and also 60,000 lots of wood pellets to Oriental. They also export percentage of Palm bit shells (PKS) to Japan. Intoxicated of supplement, high quality as well as amount, the purchasing price is high.


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